<PAGE>
BNY
HAMILTON
[LOGO]
ANNUAL REPORT
BNY HAMILTON FUNDS
EQUITY INCOME FUND INTERMEDIATE
NEW YORK
LARGE CAP GROWTH FUND TAX-EXEMPT FUND
SMALL CAP GROWTH FUND INTERMEDIATE
TAX-EXEMPT FUND
INTERNATIONAL
EQUITY FUND MONEY FUND
INTERMEDIATE TREASURY
GOVERNMENT FUND MONEY FUND
INTERMEDIATE DECEMBER 31, 1999
INVESTMENT
GRADE FUND BNY
HAMILTON
FUNDS
<PAGE>
BNY
HAMILTON
FUNDS
<PAGE>
CHAIRMAN'S LETTER
Dear Shareholder:
We are pleased to provide you with the BNY Hamilton Funds Annual Report for the
year ended December 31, 1999. This report contains performance and portfolio
manager commentary for each of our ten Funds. It also includes a discussion of
the investment environment by Kevin J. Bannon, Chief Investment Officer of The
Bank of New York, which is investment advisor to the Funds.
The past year was once again a period of significant growth and achievement for
the BNY Hamilton Funds. Good investment performance and strong inflows into the
Funds combined to boost total assets from $5.43 billion to $6.98 billion, an
increase of nearly 29% for the year.
1999 was a year of positive returns for the major stock market indices and a
banner year for the four equity portfolios in the BNY Hamilton Funds family.
Each of these Funds provided returns for the year that were well ahead of the
averages for their peer fund universes as determined by Lipper Analytical
Services, an independent mutual fund rating service. For the major fixed income
market indices, 1999 was a year of below trend returns. In this environment, the
four fixed income portfolios in the BNY Hamilton Funds family provided
competitive performance while maintaining their emphasis on high-quality
holdings and conservative maturities. The BNY Hamilton Money Fund and Treasury
Money Fund also provided very competitive yields while adhering to their strict
quality standards.
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. Complete
details about BNY Hamilton Funds performance can be found in the pages that
follow. You will want to read this 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 choice of ten 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
<PAGE>
INVESTMENT ADVISOR'S LETTER
Dear Shareholder:
By almost every measure, 1999 was a year of remarkable performance for the U.S.
economy. Investors began the year worrying about a potential global deflationary
slump stemming from the financial crises that unfolded in Russia and other
emerging market nations during 1998. However, as 1999 came to a close,
investors' biggest worry was the potential for too much prosperity which could
cause the economy to overheat.
Real GDP (gross domestic product) grew at a robust 4.0% pace, keeping the
current economic expansion on course toward becoming--in February of this
year--the longest period of uninterrupted growth in U.S. history. Unemployment
declined from 4.3% to 4.1% during 1999 as the economy created 2.7 million new
jobs. Core inflation in consumer prices dropped to 2.0%, the lowest level in 30
years. Corporate profits rose strongly, with operating earnings for the S&P
500-Registered Trademark-companies increasing by more than 10%. Concerns that
Y2K related problems might derail economic expansion dissipated as the year
progressed and Y2K ultimately proved to be a non-event for both the economy and
the financial markets.
This set of economic fundamentals provided the foundation for strong gains in
the major equity market indices in 1999, but weighed heavily on the performance
of the fixed income markets. Stock investors focused on the positive
implications that strong domestic economic activity and improving growth abroad
held for continuing gains in corporate profits. Bond investors, in contrast,
focused on the negative implications that these same developments might hold for
inflation. These differing interpretations were reflected in the experience of
the mutual fund industry. Net inflows into equity mutual funds rose from last
year's levels to approach $200 billion. While fixed income mutual funds
experienced a modest net outflow of capital.
The S&P 500-Registered Trademark-, an index representative of large
capitalization U.S. equities, provided a total return (price change plus
dividends) to investors of 20.98% in 1999. This performance marked an
unprecedented fifth consecutive year of returns in excess of 20%. The Russell
2000, an index representative of small capitalization U.S. equities, returned
21.26% for the year, marking the first time that small company stocks have
outperformed large company stocks since 1993. International equities also
recorded strong results last year. The MSCI-EAFE (Morgan Stanley Capital
International--Europe, Australia and Far East) Index returned 27.31%,
outperforming large capitalization U.S. stocks for the first time since 1994.
The fourth quarter contributed most of the full year returns for the major stock
market indices: in the last three months of 1999 the returns for the S&P
500-Registered Trademark-, the Russell 2000 and the MSCI-EAFE indices were,
respectively, 14.88%, 18.45% and 17.06%.
One of the most distinguishing characteristics of the U.S. equity markets in
1999 was the narrowness of market breadth. While the major indices showed strong
gains, it was a relatively small group of stocks that accounted for most of this
performance. In terms of market leadership, technology and telecommunications
equipment issues were the standout performers. Of the ten broad sectors in the
S&P 500-Registered Trademark-, only the technology sector and the capital goods
sector outperformed the index last year. In fact, more than half of the 500
issues in this index were actually down for the full year. Growth-oriented
stocks, such as those emphasized in the BNY Hamilton Equity Funds, outdistanced
value-oriented stocks by a substantial margin.
<PAGE>
Intermediate- and long-term interest rates rose fairly steadily over the course
of the year as continuing strength in economic activity stoked inflationary
fears. Short-term interest rates rose sharply during the second half of the year
as the Federal Reserve shifted the direction of monetary policy beginning in
June. By year-end, the Federal Reserve had increased the federal funds rate by a
total of 75 basis points, fully reversing the interest rate cuts it had
engineered during the prior year's financial crises. For the full year, the
federal funds rate increased from 4.75% to 5.50%, the 10-year Treasury Note
yield rose from 4.65% to 6.44%, and the 30-year Treasury Bond yield rose from
5.09% to 6.48%. Municipal Bond yields rose as well. In this environment,
declines in bond prices essentially offset coupon interest received producing
nearly break-even returns for fixed income investors for the year. In 1999, the
total return for the Lehman Brothers Intermediate Government/Corporate Index of
taxable bonds was .39% and the return for the Lehman Brothers Five-Year General
Obligation Municipal Bond Index was .72%.
The economy entered 2000 with solid forward momentum as consumer confidence
remains high and capital spending remains strong. Inflation remains subdued at
about 2.5%, but the continued strength in the economy in general, and the
tightness in labor markets in particular, have many investors on edge. With the
unemployment rate at its lowest level in almost 30 years, investors' anxiety is
that rising wage rates will reignite inflationary pressures. Developments on
this front bear careful monitoring, but, in our judgment, are unlikely to prove
to be the undoing of either the expansion in the economy or the bull market in
financial assets. Strong gains in productivity, driven by developments such as
globalization and the spread of the Internet, are a powerful force keeping
inflation in check.
Looking forward, our expectation is that the economic fundamentals will continue
to unfold along lines that will be supportive for the financial markets in the
U.S. and abroad. Moderate economic growth and low inflation represent a bullish
forecast for both stocks and bonds.
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 EQUITY INCOME FUND
Schedule of Investments............................................. 21
Statement of Assets and Liabilities................................. 25
Statement of Operations............................................. 25
Statements of Changes in Net Assets................................. 26
Financial Highlights................................................ 27
BNY HAMILTON LARGE CAP GROWTH FUND
Schedule of Investments............................................. 29
Statement of Assets and Liabilities................................. 33
Statement of Operations............................................. 33
Statements of Changes in Net Assets................................. 34
Financial Highlights................................................ 35
BNY HAMILTON SMALL CAP GROWTH FUND
Schedule of Investments............................................. 36
Statement of Assets and Liabilities................................. 40
Statement of Operations............................................. 40
Statements of Changes in Net Assets................................. 41
Financial Highlights................................................ 42
BNY HAMILTON INTERNATIONAL EQUITY FUND
Schedule of Investments............................................. 43
Industry Diversification............................................ 48
Statement of Assets and Liabilities................................. 50
Statement of Operations............................................. 50
Statements of Changes in Net Assets................................. 51
Financial Highlights................................................ 52
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
Schedule of Investments............................................. 53
Statement of Assets and Liabilities................................. 57
Statement of Operations............................................. 57
Statements of Changes in Net Assets................................. 58
Financial Highlights................................................ 59
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
Schedule of Investments............................................. PAGE 61
Statement of Assets and Liabilities................................. 66
Statement of Operations............................................. 66
Statements of Changes in Net Assets................................. 67
Financial Highlights................................................ 68
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
Schedule of Investments............................................. 69
Statement of Assets and Liabilities................................. 74
Statement of Operations............................................. 74
Statements of Changes in Net Assets................................. 75
Financial Highlights................................................ 76
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
Schedule of Investments............................................. 78
Diversification by State............................................ 88
Statement of Assets and Liabilities................................. 89
Statement of Operations............................................. 89
Statements of Changes in Net Assets................................. 90
Financial Highlights................................................ 91
BNY HAMILTON MONEY FUND
Schedule of Investments............................................. 92
Statement of Assets and Liabilities................................. 101
Statement of Operations............................................. 101
Statements of Changes in Net Assets................................. 102
Financial Highlights................................................ 103
BNY HAMILTON TREASURY MONEY FUND
Schedule of Investments............................................. 106
Statement of Assets and Liabilities................................. 108
Statement of Operations............................................. 108
Statements of Changes in Net Assets................................. 109
Financial Highlights................................................ 110
NOTES TO FINANCIAL STATEMENTS......................................... 111
REPORT OF INDEPENDENT AUDITORS........................................ 119
DIRECTORS AND OFFICERS................................................ 120
</TABLE>
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
AN INTERVIEW WITH ROBERT G. KNOTT, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR EQUITY INCOME FUNDS IN
1999?
A. Vigorous economic growth, low inflation and better-than-expected earnings
strength supported a strong U.S. equity market during 1999. With the
exception of a six-week period from April to May, when market leadership
shifted briefly to value stocks, investors consistently favored companies
with the highest projected earnings growth potential.
As the dividend payout ratio for high growth companies is generally very low
(and zero in many cases), this was a challenging environment for equity
income funds. 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 14.51% for Institutional Class Shares
and 14.27% for Investor Class Shares(1) for the 12-month period ended
December 31, 1999. This placed the Fund significantly ahead of its benchmark,
the Lipper Equity Income Fund Index(2), which was up 4.19%. The S&P
500-Registered Trademark- Index(3) returned 20.98% over the same period.
The Fund outperformed the S&P 500-Registered Trademark- Index on a yield
basis, providing a yield of 1.3% after expenses, compared with 1.1% for the
S&P 500-Registered Trademark-.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. An emphasis on well-established companies with promising growth prospects
contributed to the Fund's strong performance during the year. Many of these
companies are capitalizing on powerful growth trends in the economy,
including robust consumer spending, rising use of the Internet and dramatic
changes in global telecommunications. The Fund also benefited from its
positions in convertible securities, many of which helped to cushion the Fund
during the market's volatile ups and downs.
Q. WHAT STOCKS PERFORMED WELL FOR THE FUND?
A. Veritas, whose storage management software enables businesses to back up and
recover data, was our best performer, gaining 600% since the start of the
year. Sun Microsystems was another strong performer: a leading provider of
the hardware, software and networked solutions that power the Internet, it
was up 260% for the year. Nokia, the leading supplier of mobile phones,
gained 219% for the 12-month period ended December 31, 1999.
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE YEAR?
A. During the year, we rotated out of the more expensive healthcare, consumer
staples and service sectors, while raising our exposure to consumer
cyclicals, capital goods and energy stocks. While our technology weighting
increased, this was due largely to price appreciation. As our weighting in
this sector grew, we regularly took profits, particularly during the second
half of the year, in order to keep the portfolio in balance with its intended
risk/return profile. The income-producing part of the portfolio, which
included convertible securities, utilities and REITs, remained stable.
1
<PAGE>
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. In this environment of strong corporate earnings growth, low inflation and
global economic recovery, our outlook for 2000 is positive. However,
volatility has become a hallmark of the current market and we expect it to
continue in 2000. We plan to continue to build up the cyclical part of the
portfolio. As global growth continues to improve, many of these companies are
likely to benefit directly. Although interest rates will probably move higher
in the near term, we expect them to top out fairly soon. When this happens,
we plan to use the opportunity to also add to the Fund's utility and REIT
positions.
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-----------------------------
CUMULATIVE AVERAGE ANNUAL
PERIOD TOTAL RETURN TOTAL RETURN
------ ------------ --------------
<S> <C> <C>
1 Year............................................. 14.51% 14.51%
5 Years(4)......................................... 145.81% 19.70%
Since Inception (8/10/92)(4)....................... 183.79% 15.14%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BNY HAMILTON EQUITY S&P 500-REGISTERED TRADEMARK- INDEX LIPPER EQUITY INCOME FUND INDEX
INCOME FUND INSTITUTIONAL SHARES
<S> <C> <C> <C>
8/10/92 $10,000.00 $10,000.00 $10,000.00
7/31/93 11,465 10,868 11,370
7/31/94 11,565 11,434 11,935
7/31/95 13,555 14,416 13,944
7/31/96 15,282 16,805 15,858
7/31/97 20,988 25,546 22,093
7/31/98 23,902 30,489 24,571
7/31/99 26,158 36,669 27,333
12/31/99 28,379 40,769 26,797
</TABLE>
THE S&P 500-REGISTERED TRADEMARK- INDEX IS AN UNMANAGED INDEX OF COMMON STOCKS
AND CANNOT BE INVESTED IN DIRECTLY. THE INDEX DOES NOT TAKE INTO ACCOUNT FEES
AND EXPENSES. FOR COMPARATIVE PURPOSES, THE INDEX'S JULY 31, 1992 VALUE IS USED
AS THE AUGUST 10, 1992 VALUE.
(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 COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. 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. The inception date for the Equity Income Fund Investor
Shares was 8/10/92.
(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., 1999.
(3) The S&P 500-Registered Trademark- 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, cumulative total return and average annual total return
for 5 years and since inception would have been lower.
2
<PAGE>
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 1999?
A. The broad economic backdrop continued to be very positive for stocks in 1999.
The only exception was interest rates, as the Federal Reserve raised
short-term rates three times and long-term rates climbed steadily. While
financial markets continued to be highly volatile and stock market leadership
was extremely narrow, the market for large capitalization stocks nonetheless
posted its fifth consecutive annual gain in excess of 20%.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM DURING THE PERIOD?
A. The Fund performed very well in 1999, beating both of its benchmarks by a
wide margin. The Fund posted a total return of 37.13% for Institutional
Class Shares and 36.83% for Investor Class Shares(1). In comparison, the
Lipper Growth and Income Fund Index(2) returned 11.86% and the S&P
500-Registered Trademark-(3) Index returned 20.98% for the same period.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S STRONG PERFORMANCE?
A. The Fund's emphasis on companies with strong unit growth was the principal
positive driver of performance, particularly as interest rates rose in the
second half of the year. The Fund's technology exposure, its largest sector
weighting, was focused in computer software and systems, semiconductors and
telecommunications equipment. In healthcare, the Fund was overweighted in the
biotech area, where new products typically drive top-line growth. These areas
all significantly outperformed the market during 1999.
Q. HOW DID THE FUND'S PORTFOLIO COMPOSITION CHANGE DURING THE PERIOD?
A. The biggest change to the Fund's composition was the increase in technology
exposure, which grew from 21.5% at the start of the year to 31.6% of the
portfolio by year-end. The Fund's concentration also increased during the
year. By year end, the ten largest holdings represented 37.3% of the
portfolio, up from 30.5% on December 31, 1998.
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. Most of the economic trends that were very positive in 1999 should continue
into 2000. These include continued economic growth in the U.S. and abroad,
solid corporate profit growth, low inflation and improving productivity.
While interest rates will likely move higher in the near term, we do not
believe the increase will be significant enough to become a negative for the
stock market. In this environment, we expect to see rising equity markets
with leadership continuing to be concentrated in companies with rapid
top-line growth. With stock prices and valuation levels up substantially over
the past few years, our expectation is for continued high levels of
volatility and less dramatic gains in 2000.
3
<PAGE>
It is with deep regret that we announce the tragic death of Christopher DiEnno
on December 28, 1999. Chris' keen insights made important contributions to the
investment success which the BNY Hamilton Large Cap Growth Fund has enjoyed. His
enthusiasm and friendship will be missed by all of his colleagues at the BNY
Hamilton Funds.
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-----------------------------
CUMULATIVE AVERAGE ANNUAL
PERIOD TOTAL RETURN TOTAL RETURN
------ ------------ --------------
<S> <C> <C>
1 Year............................................. 37.13% 37.13%
5 Years............................................ 263.94% 29.46%
10 Years........................................... 424.18% 18.01%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BNY HAMILTON LARGE CAP S&P 500-REGISTERED TRADEMARK- INDEX LIPPER GROWTH & INCOME FUND INDEX
GROWTH FUND INSTITUTIONAL SHARES
<S> <C> <C> <C>
12/31/89 $10,000 $10,000 $10,000
12/31/90 $9,709 $9,682 $9,682
12/31/91 $12,716 $12,841 $12,841
12/31/92 $13,321 $13,612 $13,612
12/31/93 $14,693 $14,973 $14,973
12/31/94 $14,403 $15,171 $15,171
12/31/95 $18,869 $20,855 $20,855
12/31/96 $23,553 $25,666 $25,666
12/31/97 $30,905 $34,200 $34,200
12/31/98 $40,111 $44,035 $44,035
12/31/99 $55,005 $53,273 $49,262
</TABLE>
THE S&P 500-REGISTERED TRADEMARK- INDEX IS AN UNMANAGED INDEX OF COMMON STOCKS
AND CANNOT BE INVESTED IN DIRECTLY. THE INDEX DOES NOT TAKE INTO ACCOUNT FEES
AND EXPENSES.
(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 COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance includes performance of common and
collective trust fund ("Commingled") accounts advised by The Bank of New
York dating back to 12/31/89 and prior to the Fund's commencement of
operations on 4/1/97, 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 of 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.
(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., 1999. This Fund was previously compared to the
Lipper Growth Fund Index. Going forward, it will be compared to the
Lipper Growth & Income Fund Index. This change is being made to more
accurately reflect the typical composition of the Fund's portfolio.
(3) The S&P 500-Registered Trademark- is considered representative of the
broad U.S market of large-capitalization stocks.
4
<PAGE>
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
1999?
A. The broadening of the equity market that we have been anticipating for some
time unfolded in 1999. For the year, the Russell 2000 Index rose 21.26%
versus 20.98% for the S&P 500-Registered Trademark-. We have seen a very
narrow market from 1995 to 1998, which favored the big blue-chip stocks in
the S&P 500-Registered Trademark-. During this period the compound annual
return of the S&P 500-Registered Trademark- was nearly double that of the
Russell 2000, 30.53% versus 15.57%. In 1999, investors began to focus more on
the attractive relative valuations and fundamentals available in the Small
Cap sector, leading to a broadening of the markets.
The Russell 2000's slim margin of outperformance over the S&P
500-Registered Trademark- masked tremendous volatility. The Russell 2000's
quarterly returns in 1999 were very inconsistent: two positive quarters of
double digit returns (the second and fourth) and two negative quarters (the
first and third).
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund performed extremely well. With a total return of 97.22% for the
Institutional Class Shares and 96.65% for the Investor Class Shares(1), the
Fund significantly outperformed its benchmarks, the Russell 2000 Index(2) and
the Lipper Small-Cap Fund Index(3), which returned 21.26% and 41.54%,
respectively, for the same period.
Q. WHAT ACCOUNTED FOR THE FUND'S STRONG OUTPERFORMANCE?
A. The Fund's bottom-up stock selection strategy of focusing on small companies
whose earnings are growing faster than the average company and whose growth
opportunities are underestimated by the market was the primary source of both
our above market returns and below market volatility. The lower risk profile
of the Fund is evidenced by the positive returns achieved for all four
quarters in 1999, while the Russell 2000 (as noted above) had two negative
quarters.
Q. WHAT WERE SOME OF THE FUND'S BEST PERFORMING SECTORS DURING THE YEAR?
A. Technology in general is transforming the global economy and the way we do
business. The transition from analog to digital, from wireline to wireless,
and from voice to data is driving rapid change and creating tremendous
investment opportunities in smaller companies. One area of investment focus
has been on those firms that are providing the essential infrastructure that
companies will need to thrive in this new era. We are also focusing on
companies that have successfully adopted these new technologies in their
business models and are applying them in their respective industries.
Q. WHAT DO YOU FORESEE FOR 2000?
A. Looking ahead, we see enormous opportunity in the market. The transition to a
digital wireless data world is 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. As opportunities
in the market unfold, so will risk. That is why we have gradually increased
the number of holdings in the Fund's portfolio. In 1997 the Fund held 40-45
issues; today
5
<PAGE>
there are 115. By increasing our diversification, we believe we are well
positioned to minimize volatility in the Fund as the transformation to this
new environment continues to unfold.
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-----------------------------
CUMULATIVE AVERAGE ANNUAL
PERIOD TOTAL RETURN TOTAL RETURN
------ ------------ --------------
<S> <C> <C>
1 Year............................................. 97.22% 97.22%
5 Years............................................ 265.80% 29.59%
Since Inception (12/31/90)......................... 600.99% 24.14%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BNY HAMILTON SMALL CAP RUSSELL 2000 INDEX LIPPER SMALL CAP FUND INDEX
GROWTH FUND INSTITUTIONAL SHARES
<S> <C> <C> <C>
12/31/1990 $10,000 $10,000 $10,000
12/31/1991 $15,245 $14,603 $14,850
12/31/1992 $16,141 $17,293 $16,510
12/31/1993 $19,227 $20,561 $19,300
12/31/1994 $19,163 $20,186 $19,206
12/31/1995 $23,172 $25,928 $25,279
12/31/1996 $30,117 $30,208 $28,912
12/31/1997 $32,944 $36,966 $33,264
12/31/1998 $35,544 $36,022 $32,976
12/31/1999 $70,100 $43,680 $46,803
</TABLE>
THE RUSSELL 2000 INDEX IS AN UNMANAGED INDEX OF COMMON STOCKS, AND CANNOT BE
INVESTED IN DIRECTLY. THE INDEX DOES NOT TAKE INTO ACCOUNT FEES AND EXPENSES.
* 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 COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. 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.
(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., 1999.
6
<PAGE>
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
IN 1999?
A. During the first half of the year, a shift in investor sentiment created a
significant rotation in the markets toward attractively-valued cyclical
stocks. This was due to enormous optimism regarding the growth of the global
economy. However, as concerns about rising interest rates emerged during the
summer, the markets rotated back to growth stocks, which once again performed
strongly. While information technology and communications sectors dominated,
many defensive stocks--including utilities, food and tobacco--underperformed
expectations, particularly during the last month of the year.
One of the major factors stimulating European markets was a strong
acceleration of business activity, including high levels of mergers,
acquisitions, and corporate restructuring, combined with little to no
inflation. The long-awaited economic upturn in Japan helped push the yen
higher relative to the U.S. dollar, enhancing returns for U.S. investors in
that market. Elsewhere in Asia, economies improved and structural reforms
were implemented. Weakness in Latin American markets resulted from concerns
over the region's large fiscal deficits, rising U.S. interest rates, and
political uncertainties.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. Very well. For the 12-month period ended December 31, 1999, the Fund returned
43.45% for Institutional Class Shares and 43.00% for Investor Class
Shares.(1) This compared favorably with the Lipper International Fund
Index(2), which returned 37.83%, and the MSCI EAFE Index(3), which returned
27.31% for the same period.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. The Fund maintained its focus on growth-oriented stocks. This strategy caused
the Fund to underperform the market during the first few months of the year.
However, as the market rotated away from value stocks toward growth-oriented
sectors, including telecommunications, internet and media, the Fund's growth
strategy paid off. The Fund's overweighting in Japan helped performance.
However, the positive effect was reduced by our overweighted position in
Europe, which did not perform as strongly. Strong stock selection was the
primary driver of the Fund's outperformance.
Q. HOW DID THE FUND'S PORTFOLIO COMPOSITION CHANGE DURING THE PERIOD?
A. The Fund began 1999 overweighted in Europe and underweighted in Japan. As
overseas economies firmed up and we began to move assets into Asia, we ended
the year overweighted in Japan and underweighted in Europe. Throughout the
period, we were fairly consistent in our stock selection. On a sector basis,
this led the Fund to be overweighted in telecommunications services,
underweighted in consumer goods, and neutral in the energy and financial
services sectors.
Q. WHAT IS OUR STRATEGIC OUTLOOK GOING FORWARD?
A. We expect further economic recovery to boost international markets in the
months ahead. European economic activity remains strong, leading us to
believe that earnings estimates will be revised upwards. However, the
7
<PAGE>
threat of rising interest rates and stock market valuations, which are no
longer cheap will necessitate careful monitoring of our European positions in
the months ahead.
In contrast, we remain confident with our decision to overweight Japan. A
strengthening yen and overall improvement in the country's economy should
lead to continued improvement in the Japanese market. On a sector basis, we
have bought stocks which are generally more sensitive to overall economic
activity. We also plan to take advantage of any price pullbacks to add to our
information technology positions.
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
--------------------------------------
CUMULATIVE TOTAL AVERAGE ANNUAL
PERIOD RETURN TOTAL RETURN
------ -------------------- ---------------
<S> <C> <C>
1 Year...................................... 43.45% 43.45%
Since Inception (4/1/97).................... 85.30% 25.11%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BNY HAMILTON INTERNATIONAL MSCI EAFE GROSS INDEX LIPPER EQUITY INTERNATIONAL
EQUITY FUND INSTITUTIONAL SHARES FUND INDEX
<S> <C> <C> <C>
4/1/1997 $10,000 $10,000 $10,000
6/30/1997 $11,330 $11,306 $11,119
12/31/1997 $10,690 $10,359 $10,464
6/30/1998 $12,460 $12,025 $12,125
12/31/1998 $12,917 $12,466 $11,794
6/30/1999 $13,277 $12,978 $12,608
12/31/1999 $18,527 $15,871 $16,256
</TABLE>
THE MSCI EAFE GROSS INDEX IS AN UNMANAGED INDEX CONSIDERED REPRESENTATIVE OF THE
INTERNATIONAL EQUITY MARKET. THE INDEX DOES NOT TAKE INTO ACCOUNT FEES AND
EXPENSES.
* 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 COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The inception date for the International Equity Fund
Institutional Shares was 4/1/97. 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.
(2) The MSCI EAFE Index is considered representative of the equity markets in
Europe, Australia, Asia and the Far East.
(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., 1999.
8
<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 1999?
A. 1999 was a challenging year for the fixed income markets. Rapid economic
growth, which helped push the stock market higher, was a hindrance to bonds
as investors worried about inflationary pressures. The yield on the 10-year
U.S. Treasury Note rose from 4.65% to 6.44% as the Federal Reserve Board
raised its overnight borrowing rate from 4.75% to 5.50% in three, 25-basis
point increments in June, August and November. These monetary adjustments,
which were accompanied by hawkish comments from the Fed, created a bear
market in bonds for the second half of 1999.
Concerns surrounding the Y2K computer problem also weighed on the market as
participants feared potential dislocations in the financial system. While
mortgage issues were hurt during the summer as spreads widened, this asset
class performed particularly well during the second half of the year. As
interest rates rose, prepayment concerns abated and mortgage issuance slowed.
The latter two factors had a salutary effect on the sector, and mortgages
performed well.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund's total return of -0.73% for Institutional Class Shares and -0.98%
for Investor Class Shares(1) outperformed the Lipper Intermediate
U.S. Government Fund Index(2), which returned -1.39% for the 12-month period
ended December 31, 1999. The Lehman Intermediate Government Index(3) returned
0.50% for the same period.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. The Fund weathered this period of rising interest rates and high volatility
in yield spreads relatively well. We held the Fund's exposure to the higher
yielding mortgage sector steady in the face of the escalating yield spreads
the market experienced for much of the third quarter. As a result, the Fund
was extremely well positioned for the rebound (tightening of spreads) that
took place during the fourth quarter. Maintaining a significant exposure in
the mortgage sector was an important contributor to the Fund's good relative
performance. The mortgage sector was the top performing sector in the
investment grade universe during 1999 and, in fact, was the only sector to
produce positive returns.
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE PERIOD?
A. The Fund's composition remained fairly constant through the year. The
principal cash flows that the Fund received from its mortgage holdings during
the second half of the year were almost entirely reinvested in that sector.
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. Our strategy is predicated on a low-inflation, moderate-growth environment.
We continue to believe these trends will remain in place for the duration of
2000. However, we have recently adopted a somewhat cautious posture given the
Fed's continued tightening of monetary policy. The Fed has raised concern
over what it considers to be "above-trend" growth, excessively tight labor
markets, and a richly valued U.S. equity market. As a result, fear of further
Fed tightening is weighing on the fixed income market.
9
<PAGE>
We are confident that both the bear market in bonds and the Fed's tightening
cycle should come to a close during the first quarter of 2000. The increases
we have already seen in interest rates should begin to slow the economy in
the near term. We anticipate 3 - 3.5% growth for GDP in 2000, down from 4.0%
last year. The best opportunities in bond markets typically present
themselves toward the end of Fed tightening cycles and, with this in mind we
will look to be more aggressive in the Fund during the first quarter of 2000.
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-----------------------------
CUMULATIVE AVERAGE ANNUAL
PERIOD TOTAL RETURN TOTAL RETURN
------ ------------ --------------
<S> <C> <C>
1 Year................................................ (0.73)% (0.73)%
5 Years(4)............................................ 37.01% 6.50%
Since Inception (8/10/92)(4).......................... 41.06% 4.76%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BNY HAMILTON INTERMEDIATE LEHMAN BROTHERS INTERMEDIATE LIPPER INTERMEDIATE U.S.
GOVERNMENT FUND INSTITUTIONAL SHARES GOVERNMENT INDEX GOVERNMENT FUND INDEX
<S> <C> <C> <C>
8/10/92 $10,000 $10,000 $10,000
7/31/93 $10,679 $10,818 $10,867
7/31/94 $10,430 $10,918 $10,785
7/31/95 $11,308 $11,834 $11,660
7/31/96 $11,831 $12,450 $12,194
7/31/97 $12,813 $13,517 $13,322
7/31/98 $13,734 $14,439 $14,230
7/31/99 $14,013 $15,024 $14,522
12/31/99 $14,105 $15,168 $14,625
</TABLE>
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT INDEX IS AN UNMANAGED INDEX
GENERALLY CONSIDERED REPRESENTATIVE OF THE U.S. GOVERNMENT INTERMEDIATE-TERM
BOND MARKET. THE INDEX DOES NOT TAKE INTO ACCOUNT FEES AND EXPENSES. FOR
COMPARATIVE PURPOSES, THE INDEX'S JULY 31, 1992 VALUE IS USED AS THE AUGUST 10,
1992 VALUE.
(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 COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance for Institutional Shares prior to
4/1/97 is based on the performance of Investor Shares. The adviser has
agreed to assume a portion of the expenses of 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.
(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., 1999.
(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, cumulative total return and average annual total return
for 5 years and since inception would have been lower.
10
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
AN INTERVIEW WITH TERENCE MCCORMICK (VICE PRESIDENT) AND PAUL PERTUSI (ASSISTANT
VICE PRESIDENT), CO-PORTFOLIO MANAGERS
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR THE INVESTMENT GRADE
FUND DURING 1999?
A. 1999 was a challenging year for fixed income markets, including the
investment-grade sector. Rapid economic growth, which helped push the stock
market higher, weighed down the bond market as investors worried about
inflationary pressures. The yield on the 10-year Treasury Note rose from
5.78% to 6.44% over the second half of the year, as the Federal Reserve
raised its overnight borrowing rate from 4.75% to 5.50% in three 25-basis
point increments in June, August and November. These monetary adjustments,
which were accompanied by hawkish comments from the Fed, created a bear
market in bonds for the second half of 1999.
Concerns surrounding potential Y2K computer problems also weighed on the
market as investors feared potential dislocations in the financial system.
Corporate bond issuance was particularly heavy during the summer months as
corporate treasurers rushed to raise cash in advance of year-end. Record
corporate issuance had an adverse impact on spreads in this sector.
While mortgage issues were hurt by the widening of spreads during the summer,
this asset class performed particularly well during the second half of the
year. As interest rates rose, prepayment concerns abated and mortgage
issuance slowed. The latter two factors had a salutary effect on the sector,
and mortgages were among the best performers during the second half of the
year.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund provided a total return of -1.47% for Institutional Class Shares and
-1.73% for Investor Class Shares(1) for the 12-month period ended
December 31, 1999. In comparison, the Lipper Intermediate Investment Grade
Index(2) returned -0.98% and the Lehman Brothers Intermediate
Government/Corporate Bond Index(3) returned 0.39%.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. During the third and fourth quarters, we funded new mortgage, agency and
asset-backed purchases with sales of U.S. Treasurys. Although supply
conditions favored the U.S. Treasury market relative to other bond market
sectors, we generally favored spread issues during the recent market
sell-off. The incremental yield provided by these issues will serve as a
partial offset to any price depreciation accompanying a further rise in
interest rates.
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE PERIOD?
A. As inflationary fears mounted, the spread between two- and 30-year Treasury
issues narrowed from 45 basis points on June 30th to 23 basis points at the
close of 1999. A flattening of this nature is typical during a period of
sustained Fed tightening. During the second half of 1999, our strategy was to
move securities in along the yield curve as issues with longer maturities
became less attractive relative to issues with shorter maturities. Our main
shift was from the 7-10 year maturity range to the 4-7 year maturity range.
This served to reduce the Fund's duration slightly. The shift away from
Treasurys into agencies, mortgages, and asset-backed securities allowed us to
add yield to the portfolio, and to protect the Fund from the relative
under-performance of the Treasury sector.
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. Our strategy is predicated on a low-inflation, moderate-growth environment.
We continue to believe these trends will remain in place for the duration of
2000. However, we have recently adopted a somewhat cautious, neutral-duration
position given the Fed's continued tightening of monetary policy. The Fed has
raised concerns
11
<PAGE>
over what it considers to be "above-trend" growth, excessively tight labor
markets, and a richly valued U.S. equity market. These concerns continue to
keep the fixed income market on edge.
We are confident that both the disappointing performance of bonds and the
Fed's tightening cycle should come to a close during the first half of 2000.
We anticipate a moderation in real GDP growth to 3 - 3.5% in 2000 from 4.0%
in 1999. The best opportunities in the bond markets typically present
themselves toward the end of Fed tightening cycles and we will be seeking to
become more aggressive in lengthening maturities in the Fund as opportunities
arise.
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-----------------------------
CUMULATIVE AVERAGE ANNUAL
PERIOD TOTAL RETURN TOTAL RETURN
------ ------------ --------------
<S> <C> <C>
1 Year............................................. (1.47)% (1.47)%
5 Years............................................ 39.84% 6.93%
10 Years........................................... 84.62% 6.32%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BNY HAMILTON INTERMEDIATE LEHMAN BROTHERS INTERMEDIATE LIPPER INTERMEDIATE INVESTMENT
INVESTMENT GRADE INSTITUTIONAL SHARES GOVT/CORP INDEX GRADE INDEX
<S> <C> <C> <C>
12/31/89 $10,000 $10,000 $10,000
12/31/90 $10,397 $10,915 $10,593
12/31/91 $11,945 $12,510 $12,306
12/31/92 $12,686 $13,407 $13,191
12/31/93 $13,906 $14,584 $14,508
12/31/94 $13,203 $14,303 $14,041
12/31/95 $15,670 $16,491 $16,445
12/31/96 $15,955 $17,160 $16,968
12/31/97 $17,260 $18,510 $18,404
12/31/98 $19,875 $20,068 $19,831
12/31/99 $19,583 $20,147 $19,635
</TABLE>
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT CORPORATE INDEX IS AN UNMANAGED
INDEX GENERALLY CONSIDERED REPRESENTATIVE OF THE INTERMEDIATE-TERM BOND MARKET.
THE INDEX DOES NOT TAKE INTO ACCOUNT FEES AND EXPENSES.
(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 COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance includes performance of common and
collective trust fund ("Commingled") accounts advised by The Bank of New
York dating back to 12/31/89 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.
(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., 1999.
(3) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
12
<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
1999?
A. The environment for the fixed income markets was very difficult during the
second half of 1999 as markets focused on the robust U.S. economy that helped
produce the lowest unemployment rate in 30 years. Despite repeated reports of
continued low inflation, the markets' perception was that strong economic
growth and low unemployment would eventually result in higher inflation.
Inflation concerns overshadowed the positive technical conditions within the
municipal market. Higher yields through the year impacted the supply of new
municipal bond issues. Total new issue volume was $225.8 billion, 21% less
than 1998.
During the second half of 1999 the Federal Reserve increased short-term rates
by an additional 50 basis points on top of the 25 basis point increase in
June, completely reversing the 75 basis point cut of late 1998. Yields on
5-and 10-year high quality municipal bonds moved approximately 30 basis
points higher during the second half of the year.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund provided a total return of -1.35% for Institutional Class Shares and
-1.60% for Investor Class Shares(1) for the year ended December 31, 1999. The
Lipper New York Intermediate Municipal Debt Fund Average(2) returned -1.59%
and the Lehman Brothers Five-Year General Obligation Municipal Bond Index(3)
posted a return of 0.72% over the same period.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. Based on our view that the inflation picture was benign and the negative
reaction to the better-than-expected economic news was exaggerated, our
investment strategy remained generally constructive throughout 1999. During
the second half of the year, we concentrated our bond purchases in the 8-13
year range. Approximately half of these were bonds purchased at prices below
their face value, which should provide better relative performance when rates
decline.
The Fund's shorter average maturity and duration vis-a-vis its Lipper
benchmark helped its performance as interest rates rose during 1999.
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE PERIOD?
A. The average maturity of the Fund ended the year at 6.5 years. This is
unchanged from June 30, 1999 and up from 6.1 years as of December 31, 1998.
Credit quality of the portfolio continued to improve during the year. This
was due to continued narrow spreads between the lower and higher quality
sectors in the market, which did not provide any incentive to sacrifice
quality to pick up yield, as well as upgrades by the rating agencies for
selected issues. The triple-and double-A rating categories represented 66% of
the bonds held in the Fund, up from 58% last year. The Baa/BBB+ category
declined to 10.6% from 16% last year.
Q. WHAT IS YOUR STRATEGIC OUTLOOK FOR 2000?
A. Going forward we believe the Federal Reserve will act as necessary to assure
a low inflation environment. In this regard, any increases in short term
rates should be viewed by the market as a positive. It should also be noted
that we are entering a presidential election year. Some presidential hopefuls
have already brought up the topic of tax cuts and we will be paying careful
attention to see if such discussions become an issue of concern in the tax
exempt bond market.
13
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-----------------------------
CUMULATIVE AVERAGE ANNUAL
PERIOD TOTAL RETURN TOTAL RETURN
------ ------------ --------------
<S> <C> <C>
1 Year............................................. (1.35)% (1.35)%
5 Years(4)......................................... 28.17% 5.09%
Since Inception (8/10/92)(4)....................... 34.70% 4.11%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BNY HAMILTON INTERMEDIATE LEHMAN BROTHERS FIVE YEAR GENERAL LIPPER NEW YORK INTERMEDIATE
NEW YORK TAX-EXEMPT FUND INSTITUTIONAL SHARES OBLIGATION MUNICIPAL BOND INDEX MUNICIPAL DEBT FUND AVERAGE
<S> <C> <C> <C>
8/10/92 $10,000 $10,000 $10,000
7/31/93 $10,549 $10,657 $10,715
7/31/94 $10,769 $10,927 $10,935
7/31/95 $11,426 $11,752 $11,628
7/31/96 $11,898 $12,296 $12,158
7/31/97 $12,707 $13,215 $13,117
7/31/98 $13,248 $13,854 $13,685
7/31/99 $13,583 $14,351 $14,007
12/31/99 $13,478 $14,399 $13,902
</TABLE>
THE LEHMAN BROTHERS FIVE YEAR GENERAL OBLIGATION MUNICIPAL BOND INDEX IS AN
UNMANAGED INDEX GENERALLY CONSIDERED REPRESENTATIVE OF THE INTERMEDIATE STATE
GENERAL OBLIGATION MUNICIPAL BOND MARKET. THE INDEX DOES NOT TAKE INTO ACCOUNT
FEES AND EXPENSES. SOME INVESTORS MAY BE SUBJECT TO THE ALTERNATIVE MINIMUM TAX
AND/OR STATE AND LOCAL TAXES. FOR COMPARATIVE PURPOSES, THE INDEX'S JULY 31,
1992 VALUE IS USED AS THE AUGUST 10, 1992 VALUE.
(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 COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance for Institutional Shares of the
Fund prior to their inception on 4/1/97 is based on the performance of
the Fund's Investor Shares. The inception date for Investor Shares of the
Fund was 8/10/92. 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.
(2) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
(3) Lipper averages are composites based on non-weighted average of all funds
and classes within the investment objective. Returns for these indexes
are net of fees. Source: Lipper Analytical Services, Inc., 1999.
(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, cumulative total return and average annual total return
for 5 years and since inception would have been lower.
14
<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
1999?
A. The fixed income market came under pressure during 1999 as inflationary fears
mounted in the face of an unexpectedly robust U.S. economy. This pushed tax
exempt bond prices lower, particularly during the second half of the year.
After cutting interest rates by a total of 75 basis points late in 1998, the
Federal Reserve reversed direction in June and boosted short-term interest
rates by the same 75 basis points in an attempt to create an environment of
non-inflationary sustainable growth. In reaction to the Fed's tightening,
municipal bond yields moved about 30 basis points higher for ten-year issues.
Notwithstanding a more than 20% decline in new issue volume (which normally
creates stronger technical conditions), demand was also down, which
contributed to weak market conditions. Net redemptions in municipal bond
mutual funds were not uncommon in the second half of the year, as individual
investors sought to rebalance their asset allocations in favor of stocks.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund's total return for 1999 was -2.06% for Institutional Shares and
-2.22% for Investor Shares.(1) In comparison, the Lipper Intermediate
Municipal Debt Fund Index(2) returned -1.37% and the Lehman Brothers
Five-Year General Obligation Municipal Bond Index(3) returned 0.72% for the
same period.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. While the investment environment for the fixed income markets in 1999 was
difficult, our investment strategy remained positive for the year. Based upon
our view that interest rates are likely to trend lower before the end of 2000
as the market ultimately concludes that inflation is not an imminent threat,
we positioned the Fund to be essentially fully invested and structured with
positive call and coupon characteristics. As interest rates rose during the
second half of the year, we were able to purchase bonds in the seven- to
ten-year range at a discount to their face value. This should help boost the
Fund's relative performance, particularly if interest rates come down as the
new year progresses.
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE PERIOD?
A. The Fund's average maturity of 7.8 years remained essentially unchanged from
mid-year. However, the Fund's credit quality improved through 1999 with
triple-A holdings rising 4% to nearly 44% of the portfolio and triple B
holdings declining slightly to 10.5%. With the robust economy, many state and
local governments have found themselves in generally strong financial
condition and, as a result, credit quality and ratings have risen. Also,
credit spreads have narrowed, which has allowed us to upgrade the Fund's
overall credit quality during the past 12 months without sacrificing
significant yield.
Q. WHAT IS YOUR STRATEGIC OUTLOOK FOR 2000?
A. We believe the Federal Reserve will remain vigilant in guiding the economy
toward sustainable non-inflationary growth. Therefore, with real returns near
historical highs, we would consider any further weakness in bonds as an
excellent opportunity for the Fund to buy, particularly in view of the fact
that the municipal market is attractively priced relative to other fixed
income markets.
15
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-----------------------------
CUMULATIVE AVERAGE ANNUAL
PERIOD TOTAL RETURN TOTAL RETURN
------ ------------ --------------
<S> <C> <C>
1 Year............................................. (2.06)% (2.06)%
5 Years............................................ 26.52% 4.81%
10 Years........................................... 64.67% 5.11%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BNY HAMILTON INTERMEDIATE LEHMAN BROTHERS FIVE YEAR LIPPER INTERMEDIATE MUNICIPAL
TAX-EXEMPT FUND INSTITUTIONAL SHARES GENERAL OBLIGATION MUNICIPAL BOND INDEX FUND INDEX
<S> <C> <C> <C>
12/31/89 $10,000 $10,000 $10,000
12/31/90 $10,601 $10,726 $10,670
12/31/91 $11,633 $11,934 $11,828
12/31/92 $12,451 $12,820 $12,738
12/31/93 $13,504 $13,916 $14,003
12/31/94 $13,015 $13,723 $13,510
12/31/95 $14,505 $15,319 $15,249
12/31/96 $15,040 $16,027 $15,814
12/31/97 $15,958 $17,067 $16,933
12/31/98 $17,579 $18,084 $17,866
12/31/99 $17,217 $17,934 $17,620
</TABLE>
THE LEHMAN BROTHERS FIVE YEAR GENERAL OBLIGATION MUNICIPAL BOND INDEX IS AN
UNMANAGED INDEX GENERALLY CONSIDERED REPRESENTATIVE OF THE INTERMEDIATE STATE
GENERAL OBLIGATION MUNICIPAL BOND MARKET. THE INDEX DOES NOT TAKE INTO ACCOUNT
FEES AND EXPENSES. SOME INVESTORS MAY BE SUBJECT TO THE ALTERNATIVE MINIMUM TAX
AND/OR STATE AND LOCAL TAXES.
(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 COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance includes performance of common and
collective trust fund ("Commingled") accounts advised by The Bank of New
York dating back to 12/31/89 and prior to the Fund's commencement of
operations on 4/1/97, 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.
(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., 1999.
16
<PAGE>
BNY HAMILTON MONEY FUND
AN INTERVIEW WITH RICHARD KLINGMAN, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE MONEY MARKETS DURING 1999?
A. After cutting the federal funds rate by 75 basis points in three steps in
response to global economic strains in 1998, the Federal Reserve reversed
direction in June of this year and began raising rates to quell potential
inflation fears. By December 31, 1999, the Federal Reserve had taken back the
entire 75 basis point reduction in rates as the federal funds target returned
again to 5.50%.
Another market factor influencing rates was the impact of Y2K concerns on the
short-term investment market. Most commercial paper issuers decided to avoid
year-end financing activity altogether, choosing instead to pay a greater
rate to place their investments into the first quarter of 2000. This created
a favorable rate environment for investors into the New Year, but a challenge
for money funds managing their overnight liquidity. The BNY Hamilton Money
Fund met this situation with a balanced approach that took advantage of the
higher rates while it maintained the appropriate liquidity.
Q. GIVEN THIS CONTEXT, HOW DID THE BNY HAMILTON MONEY FUND PERFORM?
A. For the 12-month period ended December 31, 1999, Hamilton Shares of the Fund
posted a total return of 5.03%, Hamilton Premier Shares returned 4.77% and
Hamilton Classic Shares returned 4.51%(1). During 1999, the Fund's assets
grew significantly, increasing $920 million or 36%, to a total of
$3.46 billion.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. The Fund seeks to provide high current income while preserving investors'
capital and maintaining a very high level of liquidity. Toward that end, we
invest almost exclusively in very high quality instruments such as securities
issued by the U.S. government and its agencies (9% of net assets as of
12/31/99), top-rated commercial paper (45%) and top-rated bank and corporate
obligations (38%), and repurchase agreements (8%). This emphasis on quality
has earned the Fund both a AAAm rating from Standard & Poor's Corporation and
a Aaa rating from Moody's Investor Service. 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. Of course, there can be no assurance that it
will do so.
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE PERIOD?
A. The portfolio maintained a balanced mix of short-term assets, increasing or
decreasing the holdings in a particular asset class during the year based
upon the relative value they offered. For example, we increased the Fund's
position in floating rate notes from 3% to 7% based on our expectation of
potential positive yield impact. The weighted average maturity of the
portfolio decreased to 40 days by the close of 1999, as we positioned the
Fund against the possibility of an increasing rate environment.
17
<PAGE>
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. The economy continues to demonstrate strong growth with minimal signs of
inflation. The Federal Reserve, ever vigilant on the inflation watch, may
continue to increase the federal funds rate as needed and the BNY Hamilton
Money Fund is well positioned to take advantage of these increases should
they occur.
(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.
18
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
AN INTERVIEW WITH RICHARD KLINGMAN, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR TREASURY SECURITIES
DURING 1999?
A. After cutting the federal funds rate by 75 basis points in three steps in
response to global economic strains in 1998, the Federal Reserve reversed
direction in June of this year and began raising rates to quell potential
inflation fears. By December 31, 1999, the Federal Reserve had taken back the
entire 75 basis point reduction in rates as the federal funds target returned
again to 5.50%.
Another market factor influencing rates was the impact of Y2K concerns on the
Treasury market. The strong demand by investors to be in Treasury securities
over Y2K, coupled with Federal Reserve precautionary measures, resulted in a
challenging environment for Treasury money funds over year-end.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. For the 12-month period ended December 31, 1999, Hamilton Shares of the Fund
posted a total return of 4.79% and Hamilton Premier Shares returned 4.54%(1).
Hamilton Classic Shares commenced operations in the second quarter of 1999
and had an annualized yield since inception of 4.33%(1). During 1999, the
Fund's assets grew significantly, increasing $150 million, or 21%, to a total
of $875 million.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. The Fund seeks to provide high current income while preserving investors'
capital and maintaining a very high level of liquidity. As a result, we
invest solely in securities issued or collateralized by U.S. Treasury
obligations. The composition of the portfolio at December 31, 1999 was 22%
U.S. Treasury Bills, 15% U.S. Treasury Notes, and 63% Repurchase Agreements
backed by U.S. Treasury securities. This emphasis on quality has earned the
Fund both a AAAm rating from Standard & Poor's Corporation and a Aaa rating
from Moody's Investor Service. 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. Of course, there can be no assurance that it will do
so.
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE PERIOD?
A. The portfolio maintained a balanced mix of U.S. Treasury Notes, Bills and
U.S. Treasury-backed repurchase agreements, increasing or decreasing these
holdings during the year based upon the relative value they offered.
19
<PAGE>
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. The U.S. economy continues to demonstrate strong growth with minimal signs of
inflation. The Federal Reserve, ever vigilant on the inflation watch, may
continue to increase the federal funds rate as needed. The BNY Hamilton Money
Fund is well positioned to take advantage of these increases should they
occur.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS. The Advisor agreed to assume a portion of the expenses for this
Fund until June 30, 1998. Had expenses not been assumed, total return
would have been lower.
(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.
20
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS--73.6%
AUTOMOBILES AND TRUCKS--1.8%
200,000 Ford Motor Co.......................................... $ 10,687,500
------------
BANKING--4.5%
150,000 FleetBoston Financial Corp............................. 5,221,875
380,000 Mellon Financial Corp.................................. 12,943,750
150,000 Northern Trust Corp.................................... 7,950,000
------------
26,115,625
------------
CABLE TV SYSTEMS--1.7%
200,000 Comcast Corp. Class A.................................. 10,112,500
------------
COMMUNICATIONS EQUIPMENT & SYSTEMS--4.2%
200,000 Lucent Technologies, Inc............................... 14,962,500
50,000 Nokia Corp. (ADR)...................................... 9,500,000
------------
24,462,500
------------
COMPUTERS--MICRO--1.7%
130,000 Sun Microsystems, Inc.*................................ 10,066,875
------------
COMPUTERS--SOFTWARE &
PERIPHERALS--1.3%
70,000 Cisco Systems, Inc.*................................... 7,498,750
------------
CONGLOMERATES--3.2%
122,200 General Electric Co.................................... 18,910,450
------------
ELECTRONICS--1.6%
100,000 Solectron Corp.*....................................... 9,512,500
------------
ENTERTAINMENT--1.2%
150,000 Seagram Co., Ltd....................................... 6,740,625
------------
FINANCIAL SERVICES--DIVERSIFIED--4.0%
90,000 Merrill Lynch & Co., Inc............................... 7,515,000
110,000 Morgan Stanley, Dean Witter & Co....................... 15,702,500
------------
23,217,500
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FINANCIAL SERVICES--MORTGAGE COMPANIES--1.1%
100,000 Fannie Mae............................................. $ 6,243,750
------------
HOUSEHOLD & PERSONAL CARE
PRODUCTS--4.1%
140,000 Colgate-Palmolive Co................................... 9,100,000
150,000 Maytag Corp............................................ 7,200,000
70,000 Procter & Gamble Co.................................... 7,669,375
------------
23,969,375
------------
INSURANCE--HEALTH, LIFE & MULTI-LINE--1.5%
81,702 American International Group, Inc...................... 8,834,029
------------
MANUFACTURING--CONSUMER
PRODUCTS--2.2%
100,000 Corning, Inc........................................... 12,893,750
------------
MANUFACTURING--DIVERSIFIED--1.5%
150,000 Honeywell International, Inc........................... 8,653,125
------------
MEDIA--3.0%
80,000 AMFM, Inc.*............................................ 6,260,000
91,100 Clear Channel Communications, Inc.*.................... 8,130,675
90,000 Infinity Broadcasting Corp., Series A*................. 3,256,875
------------
17,647,550
------------
MEDICAL PRODUCTS & SUPPLIES--3.6%
169,200 Johnson & Johnson...................................... 15,756,750
150,000 Medtronic, Inc......................................... 5,465,625
------------
21,222,375
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
OIL & GAS--1.2%
115,000 Schlumberger Ltd....................................... $ 6,468,750
22,264 Transocean Sedco Forex, Inc............................ 750,018
------------
7,218,768
------------
OIL--INTERNATIONAL--4.0%
162,400 Exxon Mobil Corp....................................... 13,083,350
150,000 Total Fina S.A. (ADR).................................. 10,387,500
------------
23,470,850
------------
PHARMACEUTICALS, HEALTH CARE, COSMETIC--2.7%
100,000 American Home Products Corp............................ 3,943,750
180,000 Bristol-Myers Squibb Co................................ 11,553,750
------------
15,497,500
------------
REAL ESTATE INVESTMENT TRUSTS--8.7%
175,000 Apartment Investment & Management Co................... 6,967,187
175,000 Avalonbay Communities, Inc............................. 6,004,687
320,000 Duke-Weeks Realty Corp................................. 6,240,000
135,000 Equity Residential Properties Trust.................... 5,762,813
240,000 General Growth Properties, Inc......................... 6,720,000
300,000 Mack-Cali Realty Corp.................................. 7,818,750
150,000 Plum Creek Timber Co., Inc............................. 3,750,000
400,000 ProLogis Trust......................................... 7,700,000
------------
50,963,437
------------
RETAIL--DISCOUNT STORES--1.2%
75,000 Costco Wholesale Corp.................................. 6,843,750
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RETAIL--GENERAL MERCHANDISE--1.5%
150,000 Lowe's Companies, Inc.................................. $ 8,962,500
------------
RETAIL--SPECIALTY STORES--1.5%
197,500 Circuit City Stores-Circuit City Group................. 8,899,844
------------
TELECOMMUNICATIONS--4.7%
150,000 A T & T Corp........................................... 7,612,500
180,000 MCI WorldCom, Inc.*.................................... 9,551,250
210,000 SBC Communications, Inc................................ 10,237,500
------------
27,401,250
------------
UTILITIES--ELECTRIC--1.2%
200,000 Montana Power Co....................................... 7,212,500
------------
UTILITIES--GAS & ELECTRIC--4.0%
280,000 Enron Corp............................................. 12,425,000
100,000 Texas Utilities Co..................................... 3,556,250
245,000 Williams Cos., Inc..................................... 7,487,813
------------
23,469,063
------------
UTILITIES--WATER--0.7%
192,100 American Water Works Co., Inc.......................... 4,082,125
------------
TOTAL COMMON STOCKS
(Cost $294,393,259).................................... 430,810,366
------------
</TABLE>
<TABLE>
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS--12.0%
AUTOMOTIVE PARTS & EQUIPMENT--0.5%
80,000 Federal-Mogul Financial Trust.......................... 2,680,000
------------
CONTAINERS AND PACKAGING--0.6%
70,000 Sealed Air Corp., Series A............................. 3,535,000
------------
ENTERTAINMENT--0.4%
50,000 Seagram Co., Ltd. (ACES)............................... 2,250,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS (CONTINUED)
HOUSEHOLD & PERSONAL CARE
PRODUCTS--0.5%
33,000 Estee Lauder TRACES.................................... $ 3,126,750
------------
INSURANCE--0.4%
40,000 PLC Cap Trust II....................................... 2,115,000
------------
MANUFACTURING--CONSUMER
PRODUCTS--0.8%
120,000 Newell Financial Trust I............................... 4,575,000
------------
MEDIA--1.3%
51,000 MediaOne Group PIES (a)................................ 5,508,000
13,500 Tribune Co. (b)........................................ 2,146,500
------------
7,654,500
------------
OIL & GAS--1.5%
200,000 Coastal Corp........................................... 4,662,500
225,000 Enron Corp............................................. 4,218,750
------------
8,881,250
------------
PARKING FACILITIES--0.1%
60,000 Central Parking Financial Trust........................ 810,000
------------
REAL ESTATE INVESTMENT TRUSTS--0.2%
50,000 Apartment Investment & Management Co................... 1,262,500
------------
RETAIL--GENERAL MERCHANDISE--0.5%
80,000 Merrill Lynch DG STRYPES (c)........................... 2,890,000
------------
TELECOMMUNICATIONS--1.1%
20,000 TCI Pacific Communications, Inc., Series A............. 6,165,720
------------
TELECOMMUNICATIONS--NON-U.S.--1.0%
100,000 Global Telesystems Group**............................. 5,700,000
------------
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS (CONTINUED)
UTILITIES--GAS & ELECTRIC--3.1%
170,000 AES Trust III.......................................... $ 10,476,250
100,000 NiSource, Inc.......................................... 3,606,250
100,000 Texas Utilites Co...................................... 4,362,500
------------
18,445,000
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $69,699,323)..................................... 70,090,720
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
CONVERTIBLE BONDS--9.8%
COMPUTERS--SOFTWARE &
PERIPHERALS--2.6%
$ 1,500,000 VERITAS Software Corp., 5.25%, 11/01/04................ 14,988,750
------------
ELECTRONICS--SEMICONDUCTORS--0.9%
2,000,000 Level One Communications, Inc., 4.00%, 9/01/04......... 5,417,500
------------
ENTERTAINMENT--0.3%
1,500,000 Imax Corp.,
5.75%, 04/01/03**...................................... 2,030,625
------------
HEALTH CARE PRODUCTS &
SERVICES--1.6%
5,100,000 Alza Corp.,
5.00%, 5/01/06......................................... 5,367,750
3,000,000 Genzyme Corp.,
5.25%, 6/01/05......................................... 3,836,250
------------
9,204,000
------------
HUMAN RESOURCES--0.3%
1,980,000 Interim Services, Inc., 4.50%, 6/01/05................. 1,752,300
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
CONVERTIBLE BONDS (CONTINUED)
MANUFACTURING AND DESIGN TECHNOLOGY--2.5%
$ 1,500,000 EMC Corp.,
3.25%, 3/15/02......................................... $ 14,486,250
------------
MEDIA--0.9%
3,750,000 Clear Channel Communications, Inc., 2.625%, 4/01/03.... 5,564,063
------------
OIL & GAS--0.7%
4,000,000 Diamond Offshore Drilling, Inc. 3.75%, 2/15/07......... 4,060,000
------------
TOTAL CONVERTIBLE BONDS
(Cost $28,314,471)..................................... 57,503,488
------------
</TABLE>
<TABLE>
<C> <S> <C>
UNITED STATES TREASURY
BILL--0.4%
2,110,000 4.79%, 1/27/00
(Amortized Cost $2,102,701)............................ 2,103,432
------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
MONEY MARKET FUNDS--4.0%
4,690,308 ACM Institutional Reserves (Government Portfolio),
5.54% (d).............................................. 4,690,308
19,029,827 ACM Institutional Reserves (Prime Portfolio), 5.84%
(d).................................................... 19,029,827
------------
TOTAL MONEY MARKET FUNDS
(Cost $23,720,135)..................................... 23,720,135
------------
TOTAL INVESTMENTS BEFORE OUTSTANDING WRITTEN PUT
OPTION--99.8%
(Cost $418,229,889) (e)................................ 584,228,140
</TABLE>
<TABLE>
<CAPTION>
STRIKE
CONTRACTS PRICE VALUE
- ----------- ------------ ------------
<C> <S> <C> <C>
OUTSTANDING WRITTEN PUT OPTION--(0.0%)
130 Merrill Lynch Co., expires January 2000
(Premiums Received-$77,607)............. $ 65 $ (2,438)
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS NET OF OUTSTANDING WRITTEN PUT
OPTIONS
(Cost $418,152,282)--99.8%............................ 584,225,703
Other assets less
liabilities--0.2%..................................... 1,018,774
------------
NET ASSETS--100.0%.................................... $585,244,477
============
</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 AMERICA ONLINE, INC. COMMON STOCK.
(c) CONVERTIBLE TO DOLLAR GENERAL CORP. COMMON STOCK.
(d) REPRESENTS ANNUALIZED YIELD AT DECEMBER 31, 1999.
(e) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT DECEMBER 31, 1999, NET UNREALIZED APPRECIATION WAS
$165,998,251 BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED
OF AGGREGATE GROSS UNREALIZED APPRECIATION OF $186,043,874 AND AGGREGATE
GROSS UNREALIZED DEPRECIATION OF $20,045,623.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at value
(Cost $418,229,889)......................................................... $584,228,140
Receivables:
Capital stock sold.......................................................... 730,892
Dividends................................................................... 523,246
Interest.................................................................... 312,263
Other assets.................................................................. 12,561
-----------
TOTAL ASSETS................................................................ 585,807,102
-----------
LIABILITIES:
Due to custodian.............................................................. 5,508
Outstanding put options written
(premium received $77,607).................................................. 2,437
Payables:
Services provided by the Bank of New York and Administrator................. 425,294
Capital stock repurchased................................................... 15,640
Accrued expenses and other liabilities........................................ 113,746
-----------
TOTAL LIABILITIES........................................................... 562,625
-----------
NET ASSETS:..................................................................... $585,244,477
===========
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 35,449
Capital surplus............................................................... 401,806,541
Undistributed net investment income........................................... 471,143
Accumulated net realized gain on investments.................................. 16,857,923
Net unrealized appreciation on investments.................................... 166,073,421
-----------
NET ASSETS...................................................................... $585,244,477
===========
INSTITUTIONAL SHARES:
Net assets.................................................................... $547,250,286
===========
Shares outstanding............................................................ 33,141,876
===========
Net asset value, offering price and repurchase price per share................ $ 16.51
===========
INVESTOR SHARES:
Net assets.................................................................... $37,994,191
===========
Shares outstanding............................................................ 2,307,335
===========
Net asset value, offering price and repurchase price per share................ $ 16.47
===========
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends..................................................................... $ 11,585,075
Interest...................................................................... 2,558,871
------------
TOTAL INCOME................................................................ 14,143,946
------------
EXPENSES:
Advisory...................................................................... 3,393,456
Administration................................................................ 1,131,152
12b-1 fee--Investor Shares.................................................... 93,755
Transfer agent................................................................ 137,182
Accounting services........................................................... 60,015
Custodian..................................................................... 55,116
Reports to shareholders....................................................... 42,873
Registration and filings...................................................... 39,524
Legal......................................................................... 22,766
Directors..................................................................... 15,782
Audit......................................................................... 15,635
Insurance..................................................................... 12,703
Cash management............................................................... 7,699
Other......................................................................... 16,123
------------
TOTAL EXPENSES.............................................................. 5,043,781
Earnings credit adjustment (Note 3)........................................... (11,185)
------------
NET EXPENSES................................................................ 5,032,596
------------
NET INVESTMENT INCOME....................................................... 9,111,350
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on:
Investments................................................................. 75,607,497
Written put options......................................................... 440,440
------------
Net realized gain on investments.............................................. 76,047,937
------------
Increase (decrease) in unrealized
appreciation on:
Investments................................................................. (7,963,160)
Written put options......................................................... 346,976
------------
Net unrealized loss on investments during the year............................ (7,616,184)
------------
Net realized and unrealized gain on investments............................... 68,431,753
------------
Net increase in net assets resulting from operations.......................... $ 77,543,103
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 9,111,350 $ 9,759,306
Net realized gain on investments.............................................. 76,047,937 30,042,130
Increase (decrease) in unrealized appreciation on investments during the
year........................................................................ (7,616,184) 30,647,552
------------ ------------
Net increase in net assets resulting from operations........................ 77,543,103 70,448,988
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (8,805,615) (8,618,820)
Investor Shares........................... (532,118) (536,948)
Distributions from capital gains:
Institutional Shares............................. (61,575,721) (21,865,292)
Investor Shares.................................. (4,337,545) (1,528,489)
------------ ------------
(75,250,999) (32,549,549)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 42,581,377 26,979,380
Investor Shares.................................. 37,448,839 4,116,015
Proceeds from shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... 63,410,942 24,111,829
Investor Shares............................................. 4,717,807 1,987,895
Cost of capital stock repurchased:
Institutional Shares............................ (88,989,154) (81,028,870)
Investor Shares................................. (41,662,270) (5,358,164)
------------ ------------
Net increase (decrease) in net assets resulting from capital stock
transactions............................................................... 17,507,541 (29,191,915)
------------ ------------
INCREASE IN NET ASSETS.................................................... 19,799,645 8,707,524
NET ASSETS:
Beginning of year............................................................. 565,444,832 556,737,308
------------ ------------
End of year (includes undistributed net investment income of $152,835 at
December 31, 1999 and $379,218 at December 31, 1998)........................ $585,244,477 $565,444,832
============ ============
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 2,509,514 1,699,962
Investor Shares.................................................... 2,177,216 253,791
Shares issued on reinvestment of dividends and distributions:
Institutional Shares.... 3,942,795 1,487,475
Investor Shares......... 292,850 122,592
Shares repurchased:
Institutional Shares......................................... (5,188,493) (4,940,940)
Investor Shares.............................................. (2,413,590) (328,881)
------------ ------------
Net increase (decrease)..................................................... 1,320,292 (1,706,001)
Shares outstanding, beginning of year......................................... 34,128,919 35,834,920
------------ ------------
Shares outstanding, end of year............................................... 35,449,211 34,128,919
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-------------------------------------
YEAR ENDED FOR THE PERIOD
DECEMBER 31, APRIL 1, 1997*
------------------ THROUGH
1999 1998 DECEMBER 31, 1997
-------- -------- -----------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 16.57 $ 15.54 $ 14.21
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.28 0.28 0.25
Net realized and unrealized gain on
investments........................... 2.02 1.73 3.25
-------- -------- --------
Total from investment operations...... 2.30 2.01 3.50
-------- -------- --------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.... (0.29) (0.27) (0.24)
Distributions from capital gains........ (2.07) (0.71) (1.93)
-------- -------- --------
Total dividends and distributions..... (2.36) (0.98) (2.17)
-------- -------- --------
Net asset value at end of period........ $ 16.51 $ 16.57 $ 15.54
======== ======== ========
TOTAL RETURN:........................... 14.51% 13.18% 24.73%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $547,250 $528,233 $522,524
Ratio to average net assets of:
Expenses.............................. 0.87% 0.89% 0.87%***
Net investment income................. 1.63% 1.77% 2.07%***
Portfolio turnover rate................. 53% 39% 65%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
-----------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of year.... $ 16.53 $ 15.53 $ 14.12 $ 12.99 $ 10.70
------- ------- ------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.24 0.25 0.35 0.30 0.32
Net realized and unrealized gain on
investments........................... 2.01 1.71 3.27 2.22 2.41
------- ------- ------- -------- --------
Total from investment operations...... 2.25 1.96 3.62 2.52 2.73
------- ------- ------- -------- --------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.... (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..... (2.31) (0.96) (2.21) (1.39) (0.44)
------- ------- ------- -------- --------
Net asset value at end of year.......... $ 16.47 $ 16.53 $ 15.53 $ 14.12 $ 12.99
======= ======= ======= ======== ========
TOTAL RETURN:+.......................... 14.27% 12.82% 25.85% 19.58% 25.78%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $37,994 $37,212 $34,213 $216,363 $169,841
Ratio to average net assets of:
Expenses.............................. 1.12% 1.17% 1.01% 0.97% 1.00%
Net investment income................. 1.38% 1.50% 1.77% 2.17% 2.66%
Portfolio turnover rate................. 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.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS--94.4%
BANKING--0.9%
128,932 Wells Fargo Co................................... $ 5,213,688
------------
BEVERAGES--1.1%
114,467 Coca-Cola Co..................................... 6,667,703
------------
CHEMICALS--DIVERSIFIED--1.7%
160,146 duPont (E.I.) de Nemours & Co.................... 10,549,618
------------
COMMUNICATIONS &
ENTERTAINMENT--1.9%
163,158 Time Warner, Inc................................. 11,818,758
------------
COMMUNICATIONS EQUIPMENT & SYSTEMS--6.9%
50,000 America Online, Inc.*............................ 3,771,875
160,000 Nokia Corp. (ADR)................................ 30,400,000
120,000 Tellabs, Inc..................................... 7,702,500
------------
41,874,375
------------
COMPUTER SERVICES--1.7%
91,660 Hewlett-Packard Co............................... 10,443,511
------------
COMPUTERS--MICRO--2.8%
220,000 Sun Microsystems, Inc.*.......................... 17,036,250
------------
COMPUTERS--SOFTWARE &
PERIPHERALS--9.1%
304,560 Cisco Systems, Inc.*............................. 32,625,990
197,296 Microsoft Corp.*................................. 23,034,308
------------
55,660,298
------------
CONGLOMERATES--2.9%
113,146 General Electric Co.............................. 17,509,343
------------
CONTAINERS AND PACKAGING--1.7%
200,000 Sealed Air Corp.*................................ 10,362,500
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
COSMETICS & TOILETRIES--0.9%
130,016 Gillette Co...................................... $ 5,355,034
------------
FINANCIAL SERVICES--1.3%
200,000 Charles Schwab Corp. (The)....................... 7,675,000
------------
FINANCIAL SERVICES--DIVERSIFIED--5.0%
297,706 Citigroup, Inc................................... 16,541,290
97,100 Morgan Stanley, Dean Witter & Co................. 13,861,025
------------
30,402,315
------------
FINANCIAL SERVICES--MORTGAGE COMPANIES--1.8%
171,725 Fannie Mae....................................... 10,722,080
------------
FOOD PRODUCTS--2.1%
238,018 Bestfoods........................................ 12,510,821
------------
HOUSEHOLD & PERSONAL CARE
PRODUCTS--2.1%
116,938 Procter & Gamble Co.............................. 12,812,020
------------
INSURANCE--HEALTH, LIFE & MULTI-LINE--2.8%
155,646 American International Group, Inc................ 16,829,224
------------
MANUFACTURING AND DESIGN TECHNOLOGY--5.9%
110,000 Applied Materials, Inc.*......................... 13,935,625
200,000 EMC Corp......................................... 21,850,000
------------
35,785,625
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MANUFACTURING--CONSUMER
PRODUCTS--3.5%
163,000 Corning, Inc..................................... $ 21,016,812
------------
MEDICAL PRODUCTS & SUPPLIES--4.7%
185,795 Johnson & Johnson................................ 17,302,159
302,000 Medtronic, Inc................................... 11,004,125
------------
28,306,284
------------
OIL & GAS--1.3%
129,390 Schlumberger Ltd................................. 7,278,187
25,048 Transocean Sedco Forex, Inc...................... 843,804
------------
8,121,991
------------
OIL--INTERNATIONAL--5.4%
362,225 Exxon Mobil Corp................................. 29,181,752
62,992 Royal Dutch Petroleum Co......................... 3,807,079
------------
32,988,831
------------
PHARMACEUTICALS--9.1%
140,504 Amgen, Inc.*..................................... 8,439,021
70,000 Biogen, Inc.*.................................... 5,915,000
60,000 Genetech, Inc.*.................................. 8,070,000
146,538 Merck & Co....................................... 9,827,205
372,348 Pfizer, Inc...................................... 12,078,038
175,000 Smithkline Beecham PLC (ADR)..................... 11,276,563
------------
55,605,827
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
REAL ESTATE INVESTMENT TRUSTS--1.1%
174,000 Duke-Weeks Realty Corp........................... $ 3,393,000
140,000 Liberty Property Trust........................... 3,395,000
------------
6,788,000
------------
RESORTS & ENTERTAINMENT--1.7%
360,000 Walt Disney Co. (The)............................ 10,530,000
------------
RETAIL--SPECIALTY STORES--1.5%
226,890 CVS Corp......................................... 9,061,419
------------
SEMICONDUCTORS--2.5%
185,552 Intel Corp....................................... 15,273,249
------------
TELECOMMUNICATIONS--8.1%
245,497 Global Crossing Ltd.*............................ 12,274,850
100,000 Lucent Technologies, Inc......................... 7,481,250
234,000 MCI WorldCom, Inc.*.............................. 12,416,625
85,000 Nortel Networks Corp............................. 8,585,000
200,000 Qwest Communications International, Inc.*........ 8,600,000
------------
49,357,725
------------
UTILITIES--GAS & ELECTRIC--2.9%
319,952 Enron Corp....................................... 14,197,870
93,253 Texas Utilities Co............................... 3,316,310
------------
17,514,180
------------
TOTAL COMMON STOCKS
(Cost $233,471,408).............................. 573,792,481
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
UNITED STATES TREASURY
BILL--1.1%
$ 6,870,000 4.79%, 1/27/00 (Amortized Cost $6,846,680)....... $ 6,848,614
------------
</TABLE>
<TABLE>
<C> <S> <C>
MONEY MARKET FUNDS--5.1%
4,377,926 ACM Institutional Reserves
(Government Portfolio), 5.54%(a)................. 4,377,926
26,586,515 ACM Institutional Reserves (Prime Portfolio),
5.84%(a)......................................... 26,586,515
------------
TOTAL MONEY MARKET FUND
(Cost $30,964,441)............................... 30,964,441
------------
TOTAL INVESTMENTS BEFORE OUTSTANDING WRITTEN CALL
AND PUT OPTIONS
(Cost $271,282,529) (b)--100.6%.................. 611,605,536
------------
</TABLE>
<TABLE>
<CAPTION>
STRIKE
CONTRACTS PRICE
- ----------- ------
<C> <S> <C> <C>
OUTSTANDING WRITTEN CALL OPTIONS--(0.6%)
200 America Online, Inc., expiration
January, 2000*.......................... $ 65 (242,500)
100 Applied Materials, Inc., expiration
January, 2000*.......................... 90 (392,500)
200 Cisco Systems, Inc., expiration January,
2000*................................... 80 (557,500)
<CAPTION>
STRIKE
CONTRACTS PRICE VALUE
- ----------- ------ ------------
<C> <S> <C> <C>
OUTSTANDING WRITTEN CALL OPTIONS (CONTINUED)
100 EMC Corp., expiration January, 2000*.... $ 80 $ (310,000)
100 Lucent Technologies, Inc., expiration
January, 2000*.......................... 70 (70,000)
150 Microsoft Corp., expiration January,
2000*................................... 105 (191,250)
150 Nokia Corp., expiration January,
2000*................................... 105 (1,269,375)
200 Sun Microsystems, Inc., expiration
January, 2000*.......................... 50 (565,000)
100 Tellabs, Inc., expiration January,
2000*................................... 70 (16,875)
------------
TOTAL OUTSTANDING WRITTEN CALL OPTIONS
(Premiums received $541,056)....................
(3,615,000)
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
OUTSTANDING WRITTEN PUT OPTIONS--(0.0%)
200 America Online, Inc., expiration
January, 2000*.......................... 48 (3,750)
100 Applied Materials, Inc., expiration
January, 2000*.......................... 70 (1,250)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
STRIKE
CONTRACTS PRICE VALUE
- ----------- ------ ------------
<C> <S> <C> <C>
OUTSTANDING WRITTEN PUT OPTIONS (CONTINUED)
100 EMC Corp., expiration January, 2000*.... $ 65 $ (1,563)
100 Lucent Technologies, Inc., expiration
January, 2000*.......................... 60 (3,125)
150 Microsoft Corp., expiration January,
2000*................................... 85 (1,875)
100 Nokia Corp., expiration January,
2000*................................... 85 (2,500)
200 Sun Microsystems, Inc., expiration
January, 2000*.......................... 40 (3,750)
100 Tellabs, Inc., expiration January,
2000*................................... 50 (3,750)
------------
TOTAL OUTSTANDING WRITTEN PUT OPTIONS
(Premiums received $308,065)....................
(21,563)
------------
TOTAL INVESTMENTS NET OF OUTSTANDING WRITTEN
CALL AND PUT OPTIONS
(Cost $270,433,408)--100.0%.....................
607,968,973
Other assets less liabilities--(0.0%)...........
(42,837)
------------
NET ASSETS--100.0%.............................. $607,926,136
============
</TABLE>
ADR AMERICAN DEPOSITARY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(a) REPRESENTS ANNUALIZED YIELD AT DECEMBER 31, 1999.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT DECEMBER 31, 1999, NET UNREALIZED APPRECIATION WAS
$340,323,007 BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED
OF AGGREGATE GROSS UNREALIZED APPRECIATION OF $343,417,080 AND AGGREGATE
GROSS UNREALIZED DEPRECIATION OF $3,094,073.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at value
(Cost $271,282,529)......................................................... $ 611,605,536
Cash.......................................................................... 206
Receivables:
Dividends................................................................... 359,031
Interest.................................................................... 98,186
Capital stock sold.......................................................... 17,597
Deferred organization costs and other assets.................................. 54,608
--------------
TOTAL ASSETS................................................................ 612,135,164
--------------
LIABILITIES:
Outstanding call and put options written (premiums received $849,121)......... 3,636,563
Payables:
Services provided by the Bank of New York and Administrator................. 406,452
Capital stock repurchased................................................... 112,459
Accrued expenses and other liabilities........................................ 53,554
--------------
TOTAL LIABILITIES........................................................... 4,209,028
--------------
NET ASSETS:..................................................................... $ 607,926,136
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 37,642
Capital surplus............................................................... 261,385,727
Undistributed net investment income........................................... 156,915
Accumulated net realized gain on investments.................................. 8,810,287
Net unrealized appreciation on investments.................................... 337,535,565
--------------
NET ASSETS...................................................................... $ 607,926,136
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 589,284,564
==============
Shares outstanding............................................................ 36,480,868
==============
Net asset value, offering price and repurchase price per share................ $ 16.15
==============
INVESTOR SHARES:
Net assets.................................................................... $ 18,641,572
==============
Shares outstanding............................................................ 1,161,478
==============
Net asset value, offering price and repurchase price per share................ $ 16.05
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $29,423)....................... $ 4,770,924
Interest...................................................................... 1,342,235
--------------
TOTAL INCOME................................................................ 6,113,159
--------------
EXPENSES:
Advisory...................................................................... 3,028,895
Administration................................................................ 1,009,632
12b-1 fee--Investor Shares.................................................... 35,311
Transfer agent................................................................ 95,446
Accounting services........................................................... 59,800
Custodian..................................................................... 55,051
Reports to shareholders....................................................... 31,380
Registration and filings...................................................... 8,364
Legal......................................................................... 19,747
Audit......................................................................... 12,291
Organization.................................................................. 17,859
Directors..................................................................... 15,782
Insurance..................................................................... 6,547
Cash management............................................................... 3,857
Other......................................................................... 10,141
--------------
TOTAL EXPENSES.............................................................. 4,410,103
Fees waived by the Bank of New York (Note 3).................................. (97,961)
Earnings credit adjustment (Note 3)........................................... (1,360)
--------------
NET EXPENSES................................................................ 4,310,782
--------------
NET INVESTMENT INCOME....................................................... 1,802,377
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on:
Investments................................................................. 40,184,499
Written options............................................................. 3,240,601
--------------
Net realized gain on investments.............................................. 43,425,100
--------------
Increase (decrease) in unrealized appreciation (depreciation) on:
Investments................................................................. 121,983,330
Written options............................................................. (1,274,523)
--------------
Net unrealized gain on investments during the year............................ 120,708,807
--------------
Net realized and unrealized gain on investments............................... 164,133,907
--------------
Net increase in net assets resulting from operations.......................... $ 165,936,284
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------
1999 1998
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 1,802,377 $ 2,976,961
Net realized gain on investments.............................................. 43,425,100 31,454,367
Increase in unrealized appreciation on investments during the year............ 120,708,807 54,370,500
------------- ------------
Net increase in net assets resulting from operations........................ 165,936,284 88,801,828
------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (1,707,585) (2,846,174)
Investor Shares........................... (32,566) (74,955)
Distributions from capital gains:
Institutional Shares............................. (39,203,875) (23,566,674)
Investor Shares.................................. (1,225,900) (561,749)
------------- ------------
(42,169,926) (27,049,552)
------------- ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 86,672,618 48,105,075
Investor Shares.................................. 28,949,535 11,499,724
Proceeds from shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... 38,770,428 22,917,754
Investor Shares............................................. 1,258,079 632,192
Cost of capital stock repurchased:
Institutional Shares............................ (100,403,230) (60,262,412)
Investor Shares................................. (26,131,558) (9,391,039)
------------- ------------
Net increase in net assets resulting from capital stock transactions.......... 29,115,872 13,501,294
------------- ------------
INCREASE IN NET ASSETS...................................................... 152,882,230 75,253,570
------------- ------------
NET ASSETS:
Beginning of year............................................................. 455,043,906 379,790,336
------------- ------------
End of year (includes undistributed net investment income of $156,915 at
December 31, 1999 and $94,689 at December 31, 1998)......................... $ 607,926,136 $455,043,906
============= ============
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 6,049,520 3,974,655
Investor Shares.................................................... 2,117,449 974,111
Shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... 2,525,302 1,833,466
Investor Shares............................................. 82,520 50,958
Shares repurchased:
Institutional Shares......................................... (7,040,036) (4,996,137)
Investor Shares.............................................. (1,911,599) (743,808)
------------- ------------
Net increase................................................................ 1,823,156 1,093,245
Shares outstanding, beginning of year......................................... 35,819,190 34,725,945
------------- ------------
Shares outstanding, end of year............................................... 37,642,346 35,819,190
============= ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES INVESTOR SHARES
------------------------------------------ ----------------------------------------
FOR THE FOR THE
PERIOD PERIOD
APRIL 1, 1997* MAY 1, 1997*
YEAR ENDED DECEMBER 31, THROUGH YEAR ENDED DECEMBER 31, THROUGH
------------------------- DECEMBER 31, ------------------------- DECEMBER 31,
1999 1998 1997 1999 1998 1997
----------- ------------ --------------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period.. $ 12.71 $ 10.94 $ 10.00 $ 12.65 $ 10.92 $10.70
-------- -------- -------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.05 0.11 0.08 0.01 0.11 0.06
Net realized and unrealized gain on
investments........................... 4.59 2.46 2.83 4.57 2.42 2.12
-------- -------- -------- ------- ------- ------
Total from investment operations...... 4.64 2.57 2.91 4.58 2.53 2.18
-------- -------- -------- ------- ------- ------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment
income................................ (0.05) (0.11) (0.08) (0.03) (0.11) (0.07)
Distributions from capital gains........ (1.15) (0.69) (1.89) (1.15) (0.69) (1.89)
-------- -------- -------- ------- ------- ------
Total dividends and distributions..... (1.20) (0.80) (1.97) (1.18) (0.80) (1.96)
-------- -------- -------- ------- ------- ------
Net asset value at end of period........ $ 16.15 $ 12.71 $ 10.94 $ 16.05 $ 12.65 $10.92
======== ======== ======== ======= ======= ======
TOTAL RETURN:........................... 37.13% 23.49% 29.11%** 36.83% 23.26% 20.37%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $589,285 $443,997 $373,326 $18,642 $11,047 $6,464
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.85% 0.82% 0.82%*** 1.11% 1.07% 1.07%***
Expenses, prior to waiver from The
Bank of New York.................... 0.86% 0.91% 0.88%*** 1.14% 1.21% 1.16%***
Net investment income, net of waiver
from The Bank of New York........... 0.36% 0.73% 0.89%*** 0.10% 0.50% 0.54%***
Portfolio turnover rate................. 18% 26% 37% 18% 26% 37%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--97.8%
ADVERTISING & MARKETING
SERVICES--2.9%
46,425 DoubleClick, Inc.*...................... $ 11,748,427
------------
BANKING--0.9%
54,300 Peoples Heritage Financial Group,
Inc..................................... 817,894
55,500 Wilmington Trust Corp................... 2,677,875
------------
3,495,769
------------
BIOSCIENCES--1.0%
160,075 Aurora Biosciences Corp.*............... 4,241,987
------------
CABLE TV SYSTEMS--2.6%
70,600 Adelphia Communications Corp., Class
A*...................................... 4,633,125
85,750 Jones Intercable, Inc., Class A*........ 5,943,547
------------
10,576,672
------------
COMMERCIAL SERVICES--1.3%
76,710 Central Parking Corp.................... 1,467,079
139,950 Profit Recovery Group International,
Inc.*................................... 3,717,422
------------
5,184,501
------------
COMMUNICATIONS EQUIPMENT & SYSTEMS--0.9%
52,500 Ancor Communications, Inc.*............. 3,563,437
------------
COMPUTER SERVICES--4.5%
92,785 AnswerThink Consulting Group, Inc.*..... 3,177,886
47,350 Entrust Technologies, Inc.*............. 2,838,041
132,080 Network Appliance, Inc.*................ 10,970,895
25,450 Tanning Technology Corp.*............... 1,499,959
------------
18,486,781
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
COMPUTERS--SOFTWARE &
PERIPHERALS--29.0%
52,200 AppNet, Inc.*........................... $ 2,283,750
54,395 CareInsite, Inc.*....................... 4,378,797
63,120 Commerce One, Inc.*..................... 12,403,080
90,680 Computer Network Technology Corp.*...... 2,079,972
82,900 Concentric Network Corp.*............... 2,554,356
54,410 Digex, Inc.*............................ 3,740,687
8,755 Finisar Corp.*.......................... 786,856
16,685 Gadzoox Networks, Inc.*................. 726,840
51,750 Informatica Corp.*...................... 5,504,906
43,425 Mercury Interactive Corp.*.............. 4,687,186
66,800 Metromedia Fiber Network, Inc.*......... 3,202,225
51,700 Micromuse, Inc.*........................ 8,789,000
103,395 Netcentives, Inc.*...................... 6,442,801
31,900 NetIQ Corp.*............................ 1,660,794
25,005 NorthPoint Communications Group,
Inc.*................................... 600,120
46,700 Phone.com, Inc.*........................ 5,414,281
90,680 RAVISENT Technologies, Inc.*............ 3,485,512
17,000 RealNetworks, Inc.*..................... 2,045,312
86,300 Research in Motion Ltd.*................ 3,985,981
38,600 Rhythms NetConnections, Inc.*........... 1,196,600
29,200 SanDisk Corp.*.......................... 2,810,500
90,705 USinternetworking, Inc.*................ 6,338,012
51,100 Verio, Inc.*............................ 2,360,181
57,756 VERITAS Software Corp.*................. 8,266,327
11,050 Viant Corp.*............................ 1,093,950
90,850 Visual Networks, Inc.*.................. 7,199,862
41,885 Vitria Technology, Inc.*................ 9,801,090
53,900 Xircom, Inc.*........................... 4,042,500
------------
117,881,478
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
DATA PROCESSING SYSTEMS--0.4%
56,000 MedQuist, Inc.*......................... $ 1,445,500
------------
EDUCATION--2.1%
152,000 Apollo Group, Inc., Class A*............ 3,049,500
48,050 Career Education Corp.*................. 1,843,919
85,056 DeVry, Inc.*............................ 1,584,168
99,160 Education Management Corp.*............. 1,388,240
52,620 ITT Educational Services, Inc.*......... 812,321
------------
8,678,148
------------
ELECTRICAL EQUIPMENT--2.0%
116,360 Gemstar International Group Ltd.*....... 8,290,650
------------
ELECTRONIC EQUIPMENT &
COMPONENTS--6.8%
18,100 Applied Micro Circuits Corp.*........... 2,303,225
89,600 DII Group, Inc.*........................ 6,358,800
11,700 hi/fn, Inc.*............................ 453,375
56,500 Jabil Circuit, Inc.*.................... 4,124,500
37,850 Lattice Semiconductor Corp.*............ 1,783,681
60,000 PLX Technology, Inc.*................... 1,136,250
15,200 QLogic Corp.*........................... 2,430,100
107,800 Sawtek, Inc.*........................... 7,175,437
23,600 TranSwitch Corp.*....................... 1,712,475
------------
27,477,843
------------
ELECTRONICS--0.6%
13,850 PMC - Sierra, Inc.*..................... 2,220,328
------------
ENTERTAINMENT--0.3%
44,990 Cinar Corp., Class B*................... 1,102,255
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FINANCIAL SERVICES--0.2%
36,540 Bank United Corp., Class A.............. $ 995,715
------------
FOOD WHOLESALING--1.5%
60,700 Dean Foods Co........................... 2,412,825
82,850 Robert Mondavi Corp., Class A*.......... 2,879,037
50,250 U.S. Foodservice*....................... 841,687
------------
6,133,549
------------
HUMAN RESOURCES--0.6%
67,900 Korn/Ferry International*............... 2,469,862
------------
INSTRUMENTS--0.3%
17,665 Microchip Technology, Inc.*............. 1,208,948
------------
INSURANCE--0.1%
20,550 Reinsurance Group of America, Inc....... 570,262
------------
INSURANCE--HEALTH, LIFE & MULTI-LINE--0.3%
50,300 Annuity and Life Re (Holdings) Ltd...... 1,314,088
------------
INVESTMENT MANAGEMENT--0.8%
40,600 Legg Mason, Inc......................... 1,471,750
64,600 Waddell & Reed Financial, Inc........... 1,752,275
------------
3,224,025
------------
MANUFACTURING--2.5%
34,600 Maverick Tube Corp.*.................... 854,188
117,965 Scotts Co. (The), Class A*.............. 4,748,091
85,870 Waters Corp.*........................... 4,551,110
------------
10,153,389
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MEDIA--4.0%
40,800 Emmis Communications Corp., Class A*.... $ 5,085,338
22,000 Hispanic Broadcasting Corp.*............ 2,028,813
84,910 Radio One, Inc.*........................ 7,811,720
23,650 Scholastic Corp.*....................... 1,470,734
------------
16,396,605
------------
MEDICAL CARE & PRODUCTS--2.8%
88,450 Celgene Corp.*.......................... 6,191,500
109,100 Cephalon, Inc.*......................... 3,770,769
21,600 Express Scripts, Inc., Class A*......... 1,382,400
------------
11,344,669
------------
OIL & GAS--2.9%
38,050 BJ Services Co.*........................ 1,590,966
513,000 Grey Wolf, Inc.*........................ 1,474,875
77,100 Newfield Exploration Co.*............... 2,062,425
94,900 Patterson Energy, Inc.*................. 1,233,700
95,835 R&B Falcon Corp.*....................... 1,269,814
31,900 Stolt Comex Seaway, SA ADR*............. 350,900
63,800 Stolt Comex Seaway, SA*................. 705,788
88,600 Stone Energy Corp.*..................... 3,156,375
------------
11,844,843
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
OIL FIELD SERVICES &
EQUIPMENT--3.3%
100,700 Cal Dive International, Inc.*........... $ 3,335,688
56,700 Core Laboratories NV*................... 1,137,544
122,960 National-Oilwell, Inc.*................. 1,928,935
194,200 Precision Drilling Corp.*............... 4,988,513
167,800 Superior Energy Services, Inc.*......... 1,132,650
64,750 Tuboscope, Inc.*........................ 1,027,906
------------
13,551,236
------------
PHARMACEUTICALS--5.9%
75,100 Alkermes, Inc.*......................... 3,689,288
62,805 Alpharma, Inc., Class A*................ 1,931,254
41,850 Andrix Corp.*........................... 1,770,778
79,800 Jones Pharma, Inc.*..................... 3,466,313
65,200 MedImmune, Inc.*........................ 10,815,050
24,550 Sepracor, Inc.*......................... 2,435,053
------------
24,107,736
------------
PHARMACEUTICALS, HEALTH CARE, COSMETIC--0.7%
91,650 Shire Pharmaceuticals Group Plc.,
ADR*.................................... 2,669,306
------------
PUBLISHING--0.3%
25,000 Houghton Mifflin Co..................... 1,054,688
------------
RECORDS STORAGE--0.9%
95,345 Iron Mountain, Inc.*.................... 3,748,250
------------
RETAIL--SPECIALTY STORES--2.1%
71,900 American Eagle Outfitters, Inc.*........ 3,235,500
85,825 Duane Reade, Inc.*...................... 2,365,552
31,750 Tiffany & Co............................ 2,833,688
------------
8,434,740
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RETAILING--2.9%
100,000 BJ's Wholesale Club, Inc.*.............. $ 3,650,000
95,350 Linens 'N Things, Inc.*................. 2,824,744
44,435 MP3.com, Inc.*.......................... 1,408,034
71,100 The Children's Place Retail Stores,
Inc.*................................... 1,168,706
91,300 The Men's Wearhouse, Inc.*.............. 2,681,938
------------
11,733,422
------------
TELECOMMUNICATIONS--10.1%
51,300 American Mobile Satellite Corp.*........ 1,080,506
55,200 Antec Corp.............................. 2,014,800
187,300 Clearnet Communications, Inc., Class
A*...................................... 6,438,438
39,750 Efficient Networks, Inc.*............... 2,703,000
31,825 Next Level Communication, Inc.*......... 2,382,897
81,580 Packeteer, Inc.*........................ 5,792,180
44,100 Powertel, Inc.*......................... 4,426,538
79,600 VoiceStream Wireless Corp.*............. 11,328,075
72,400 Western Wireless Corp., Class A*........ 4,832,700
------------
40,999,134
------------
TRANSPORTATION: TRUCKING--0.3%
27,300 Swift Transportation Co., Inc.*......... 481,163
60,700 Werner Enterprises, Inc................. 853,594
------------
1,334,757
------------
TOTAL COMMON STOCKS
(Cost $208,479,640)..................... 397,683,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------
<C> <S> <C>
MONEY MARKET FUND--2.2%
$9,116,943 ACM Institutional Reserves (Prime
Portfolio)5.84% (a)
(Cost $9,116,943)....................... $ 9,116,943
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES
- ---------
<C> <S> <C>
WARRANTS--0.0%
COMMUNICATIONS &
ENTERTAINMENT--0.0%
15 Acclaim Entertainment expiring 4/04/2002
(Cost $0)............................... 30
------------
TOTAL INVESTMENTS
(Cost $217,596,583)(b)--100.0%.......... 406,799,973
Other assets less liabilities--0.0%..... 21,580
------------
NET ASSETS--100.0%...................... $406,821,553
============
</TABLE>
ADR AMERICAN DEPOSITARY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(a) REPRESENTS ANNUALIZED YIELD AT DECEMBER 31, 1999.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT DECEMBER 31, 1999, NET UNREALIZED APPRECIATION WAS
$189,203,390 BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED
OF AGGREGATE GROSS UNREALIZED APPRECIATION OF $202,116,839 AND AGGREGATE
GROSS UNREALIZED DEPRECIATION OF $12,913,449.
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at value
(Cost $217,596,583)......................................................... $ 406,799,973
Receivables:
Capital stock sold.......................................................... 870,853
Interest.................................................................... 36,752
Dividends................................................................... 8,299
Deferred organization costs and other assets.................................. 6,114
--------------
TOTAL ASSETS................................................................ 407,721,991
--------------
LIABILITIES:
Payables:
Services provided by the Bank of New York and Administrator................. 310,994
Capital stock repurchased................................................... 2,785,641
Accrued expenses and other liabilities........................................ 10,612
--------------
TOTAL LIABILITIES........................................................... 3,107,247
--------------
NET ASSETS:..................................................................... $ 404,614,744
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 17,765
Capital surplus............................................................... 198,137,076
Accumulated net realized gain on investments.................................. 17,256,513
Net unrealized appreciation on investments.................................... 189,203,390
--------------
NET ASSETS...................................................................... $ 404,614,744
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 389,553,164
==============
Shares outstanding............................................................ 17,099,948
==============
Net asset value, offering price and repurchase price per share................ $ 22.78
==============
INVESTOR SHARES:
Net assets.................................................................... $ 15,061,580
==============
Shares outstanding............................................................ 664,306
==============
Net asset value, offering price and repurchase price per share................ $ 22.67
==============
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 YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 419,614
Dividends..................................................................... 338,071
--------------
TOTAL INCOME................................................................ 757,685
--------------
EXPENSES:
Advisory...................................................................... 1,815,543
Administration................................................................ 474,603
12b-1 fee--Investor Shares.................................................... 23,021
Transfer agent................................................................ 97,907
Accounting services........................................................... 59,800
Custodian..................................................................... 46,836
Registration and filings...................................................... 19,495
Reports to shareholders....................................................... 16,232
Directors..................................................................... 15,781
Organization.................................................................. 7,683
Audit......................................................................... 6,864
Cash management............................................................... 3,714
Insurance..................................................................... 2,677
Legal......................................................................... 8,530
Other......................................................................... 3,480
--------------
TOTAL EXPENSES.............................................................. 2,602,166
Fees waived by the Bank of New York (Note 3).................................. (60,219)
Earnings credit adjustment (Note 3)........................................... (345)
--------------
NET EXPENSES................................................................ 2,541,602
--------------
NET INVESTMENT LOSS......................................................... (1,783,917)
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on:
Investments................................................................. 45,847,162
Increase in unrealized appreciation on
Investments during the year................................................. 156,806,864
--------------
Net realized and unrealized gain on investments............................... 202,654,026
--------------
Net increase in net assets resulting from operations.......................... $ 200,870,109
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------
1999 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss........................................................... $ (1,783,917) $ (319,037)
Net realized gain on investments.............................................. 45,847,162 3,890,486
Increase in unrealized appreciation on investments during the period.......... 156,806,864 9,835,596
------------- ------------
Net increase in net assets resulting from operations........................ 200,870,109 13,407,045
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from capital gains:
Institutional Shares.............................. (26,279,793) (5,305,891)
Investor Shares................................... (1,007,248) (153,674)
------------- ------------
(27,287,041) (5,459,565)
------------- ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 185,379,834 75,070,569
Investor Shares.................................. 99,736,662 34,034,055
Proceeds from shares issued on reinvestment
of distributions: Institutional Shares...................................... 24,088,440 4,771,812
Investor Shares............................................... 1,006,431 153,324
Cost of capital stock repurchased:
Institutional Shares............................ (174,252,170) (32,750,019)
Investor Shares................................. (100,092,398) (28,964,378)
------------- ------------
Net increase in net assets resulting from capital stock transactions........ 35,866,799 52,315,363
------------- ------------
INCREASE IN NET ASSETS.................................................... 209,449,867 60,262,843
NET ASSETS:
Beginning of year............................................................. 195,164,877 134,902,034
------------- ------------
End of year (includes accumulated net investment income of $7,115 at
December 31, 1998).......................................................... $ 404,614,744 $195,164,877
============= ============
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 12,733,932 6,284,220
Investor Shares.................................................... 7,024,511 2,851,784
Shares issued on reinvestment of distributions:
Institutional Shares................. 1,144,693 429,488
Investor Shares...................... 48,004 13,800
Shares repurchased:
Institutional Shares......................................... (11,897,764) (2,801,386)
Investor Shares.............................................. (6,951,929) (2,419,110)
------------- ------------
Net increase................................................................ 2,101,447 4,358,796
Shares outstanding, beginning of year......................................... 15,662,807 11,304,011
------------- ------------
Shares outstanding, end of year............................................... 17,764,254 15,662,807
============= ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
----------------------------------------------
FOR THE
PERIOD
APRIL 1,
1997*
YEAR ENDED DECEMBER 31, THROUGH
---------------------------- DECEMBER 31,
1999 1998 1997
----------- ------------ --------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning
of period.................. $ 12.46 $ 11.93 $ 10.00
-------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment loss.......... (0.11)(a) (0.02)(a) (0.02)
Net realized and unrealized
gain on investments........ 12.08 0.91 2.80
-------- -------- --------
Total from investment
operations............... 11.97 0.89 2.78
-------- -------- --------
DISTRIBUTIONS
Distributions from capital
gains...................... (1.65) (0.36) (0.85)
-------- -------- --------
Net asset value at end of
period..................... $ 22.78 $ 12.46 $ 11.93
======== ======== ========
TOTAL RETURN:................ 97.22% 7.89% 27.80%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)............ $389,553 $188,402 $133,741
Ratio to average net assets
of:
Expenses, net of waiver
from The Bank of New
York..................... 1.04% 0.97% 0.97%***
Expenses, prior to waiver
from The Bank of New
York..................... 1.06% 1.13% 1.10%***
Net investment loss, net of
waiver from The Bank of
New York................. (0.73)% (0.19)% (0.26)%***
Portfolio turnover rate...... 86% 84% 68%
<CAPTION>
INVESTOR SHARES
------------------------------------------------
FOR THE
PERIOD
MAY 1, 1997*
YEAR ENDED DECEMBER 31, THROUGH
----------------------------- DECEMBER 31,
1999 1998 1997
------------ ------------ ---------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning
of period.................. $ 12.44 $11.94 $10.03
------- ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net investment loss.......... (0.13)(a) (0.04)(a) (0.02)
Net realized and unrealized
gain on investments........ 12.01 0.90 2.78
------- ------ ------
Total from investment
operations............... 11.88 0.86 2.76
------- ------ ------
DISTRIBUTIONS
Distributions from capital
gains...................... (1.65) (0.36) (0.85)
------- ------ ------
Net asset value at end of
period..................... $ 22.67 $12.44 $11.94
======= ====== ======
TOTAL RETURN:................ 96.65% 7.55% 27.52%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)............ $15,062 $6,763 $1,162
Ratio to average net assets
of:
Expenses, net of waiver
from The Bank of New
York..................... 1.33% 1.22% 1.22%***
Expenses, prior to waiver
from The Bank of New
York..................... 1.37% 1.46% 1.40%***
Net investment loss, net of
waiver from The Bank of
New York................. (0.96)% (0.43)% (0.54)%***
Portfolio turnover rate...... 86% 84% 68%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
(a) BASED ON AVERAGE SHARES OUTSTANDING.
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--99.2%
AUSTRALIA--1.7%
40,300 AMP Ltd................................. $ 443,735
101,170 Austar United Communications Ltd.*...... 403,753
18,700 Broken Hill Proprietary Co. Ltd......... 244,697
37,800 Lend Lease Corp. Ltd.................... 527,741
14,700 National Australian Bank Ltd............ 224,082
61,310 News Corp. Ltd.......................... 593,245
488,000 Pasminco Ltd.*.......................... 533,176
92,935 Qantas Airways Ltd...................... 231,046
182,000 Smorgon Steel Group Ltd................. 244,096
74,520 Telestra Corp. Ltd.*.................... 261,807
45,130 Westpac Banking Corp. Ltd............... 310,226
108,300 WMC Ltd................................. 595,172
45,750 Woodside Petroleum Ltd.................. 336,727
------------
4,949,503
------------
CHINA--0.1%
356,000 Shandong International Power Development
Co. Ltd.*............................... 50,376
456,000 Shanghai Petrochemical Co. Ltd.*........ 71,566
558,000 Yanzhou Coal Mining Co. Ltd.*........... 154,332
------------
276,274
------------
DENMARK--0.4%
16,760 Tele Danmark AS......................... 1,245,211
------------
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FINLAND--3.8%
159,910 Merita PLC, A Shares*................... $ 942,353
35,635 Nokia Oyj............................... 6,461,469
35,992 Sonera Oyj.............................. 2,467,267
15,930 Tietoenator Oyj......................... 994,923
------------
10,866,012
------------
FRANCE--10.1%
13,900 Alcatel Alsthom*........................ 3,192,505
11,590 AXA SA*................................. 1,615,852
11,700 Banque Nationale de Paris............... 1,079,601
2,505 Bouygues SA............................. 1,592,279
14,050 Carrefour Supermarche SA................ 2,591,473
17,374 France Telecom SA....................... 2,297,981
483 L'OREAL................................. 387,539
3,357 Legrand SA.............................. 799,093
8,273 Pinault-Printemps-Redoute SA............ 2,183,465
7,401 PSA Peugeot Citroen..................... 1,680,453
13,123 Rexel SA................................ 1,169,926
20,373 Schneider Electric SA*.................. 1,599,754
10,450 Suez Lyonnaise des Eaux SA.............. 1,674,821
29,943 Total Fina SA, B Shares................. 3,996,623
8,796 Valeo SA................................ 678,728
25,358 Vivendi................................. 2,290,062
------------
28,830,155
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GERMANY--8.3%
9,500 Allianz AG*............................. $ 3,191,548
33,567 BASF AG................................. 1,754,938
40,885 Bayerische Motoren Werke AG............. 1,247,925
14,182 DaimlerChrysler AG...................... 1,112,902
27,576 Deutsche Telecom AG*.................... 1,940,348
22,025 Douglas Holding AG...................... 934,071
51,221 Dresdner Bank AG........................ 2,781,114
4,018 Fresenius AG............................ 760,939
27,400 HypoVereinsbank......................... 1,871,381
10,175 Mannesman AG............................ 2,464,058
1,569 SAP AG.................................. 957,016
25,784 Siemens AG.............................. 3,298,648
28,951 Veba AG................................. 1,414,449
------------
23,729,337
------------
HONG KONG--2.3%
76,000 ASM Pacific Technology Ltd.*............ 134,920
33,000 Bank of East Asia, Ltd.................. 91,696
299,600 Cable & Wireless HKT Ltd................ 865,250
67,000 Cheung Kong Holdings Ltd.*.............. 851,129
168,000 China Agrotech Holding Ltd.*............ 29,824
39,000 CLP Holdings Ltd........................ 179,610
270,000 Esprit Holdings Ltd..................... 291,761
112,000 Giordano International Ltd.............. 115,263
62,000 Guocco Group Ltd........................ 189,027
32,700 Hang Seng Bank Ltd.*.................... 373,336
30,000 Henderson Land Development Co. Ltd...... 192,577
117,000 Hong Kong & China Gas Co. Ltd........... 160,295
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
26,000 Hong Kong Electronic Holdings Ltd.*..... $ 81,276
16,400 HSBC Holdings PLC....................... 229,961
76,000 Hutchison Whampoa Ltd................... 1,104,779
300,000 JCG Holdings Ltd........................ 168,843
156,000 Li & Fung Ltd........................... 391,330
95,000 SmarTone Telecommunications Holdings
Ltd..................................... 458,288
41,000 Sun Hung Kai Properties Ltd............. 427,221
21,000 Swire Pacific Ltd.--A Shares............ 123,998
------------
6,460,384
------------
IRELAND--0.6%
79,686 CRH PLC................................. 1,715,039
------------
ITALY--4.5%
33,300 Assicurazioni Generali.................. 1,100,272
114,962 ENI SpA*................................ 632,308
97,367 San Paolo-IMI SpA*...................... 1,323,140
133,440 Telecom Italia SpA...................... 1,881,898
189,231 Telecom Italia SpA-RNC.................. 1,153,266
418,364 TIM SpA*................................ 4,673,775
405,088 UniCredito Italiano SpA................. 1,991,366
------------
12,756,025
------------
JAPAN--31.5%
143,000 Daiwa Securities Group Inc.............. 2,236,692
30,000 FANUC Ltd............................... 3,817,862
5,000 Fast Retailing Co. Ltd.................. 2,034,628
104,000 Fujitsi Ltd.*........................... 4,740,683
3,200 Hikari Tsushin, Inc..................... 6,416,903
146,000 Industrial Bank of Japan*............... 1,406,730
31,000 Ito-Yokado Co. Ltd...................... 3,365,940
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
200,000 KANEKA Corp............................. $ 2,556,979
70,000 Kao Corp................................ 1,995,989
195,000 Marubeni Corp........................... 818,302
22,000 Matsushita Communication Industrial Co.
Ltd..................................... 5,810,427
63,000 MKC-STAT Corp........................... 2,643,745
62,000 Nippon COMSYS Corp...................... 1,285,728
107 Nippon Telegraph & Telephone Corp.*..... 1,831,654
31,000 NITTO DENKO Corp........................ 1,549,545
164 NTT Data Corp........................... 3,769,931
183 NTT Mobile Communicaiton Network,
Inc.*................................... 7,035,019
26,000 Ono Pharmaceutical Co. Ltd.............. 696,860
19,000 Paris Miki Inc.......................... 1,364,179
177,000 Q.P. Corp............................... 1,173,882
9,000 Rohm Co. Ltd............................ 3,697,545
253,000 Sakura Bank Ltd......................... 1,465,089
38,000 SECOM Co. Ltd........................... 4,181,747
105,000 Sekisui House Ltd....................... 929,522
44,000 Seven-Eleven Japan Co. Ltd.............. 6,972,513
103,000 Sharp Corp.............................. 2,634,696
63,000 Shin-Etsu Chemical Co. Ltd.............. 2,711,533
3,500 SOFTBANK Corp........................... 3,348,332
229,000 Sumitomo Marine & Fire Insurance Co.
Ltd..................................... 1,411,230
87,000 Sumitomo Trust & Banking Co. Ltd........ 587,205
32,000 Takeda Chemical Industries Ltd.......... 1,580,749
25,000 Terumo Corp............................. 667,612
80,000 Yamato Transport Co. Ltd................ 3,098,895
------------
89,838,346
------------
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MALAYSIA--0.3%
3,000 British American Tabacco Berhad......... $ 22,898
19,200 Malayan Banking Berhad.................. 68,220
256,000 Sime Darby Berhad....................... 324,759
20,000 Tanjong PLC............................. 44,216
102,000 Tenaga Nasional Berhad.................. 263,087
55,000 The New Straits Times Press (M)
Berhad*................................. 132,452
------------
855,632
------------
NETHERLANDS--7.1%
18,208 Aegon NV................................ 1,758,988
47,638 Akzo Nobel NV*.......................... 2,389,818
15,280 CMG PLC................................. 1,137,496
40,536 Fortis (NL) NV.......................... 1,459,819
17,759 Getronics NV............................ 1,416,856
16,490 IHC Caland NV........................... 602,158
30,112 ING Groep NV............................ 1,818,186
19,847 Koninklijke Numico NV................... 740,539
15,690 Randstad Holding NV..................... 755,497
61,624 Royal Dutch Petroleum Co.*.............. 3,777,395
26,740 Unilever NV............................. 1,477,205
28,550 VNU NV*................................. 1,500,694
41,550 Wolters Kluwer NV....................... 1,406,346
------------
20,240,997
------------
NEW ZEALAND--0.2%
44,269 Fisher & Paykel Industries Ltd.......... 168,464
67,150 Telecom Corp. of New Zealand Ltd.*...... 315,045
------------
483,509
------------
NORWAY--0.3%
49,922 Tomra Systems ASA*...................... 843,665
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
PHILIPPINES--0.0%
1,750,000 Pryce Corp.*............................ $ 84,358
------------
SINGAPORE--0.6%
47,000 City Developments Ltd................... 275,060
36,000 First Capital Corp. Ltd................. 47,971
48,000 NatSteel Ltd............................ 95,654
202,218 Neptune Orient Lines Ltd.*.............. 270,676
35,173 Overseas Union Bank Ltd................. 205,844
37,800 Overseas-Chinese Banking Corp. Ltd...... 347,143
10,000 Singapore Airlines Ltd.................. 113,445
185,000 Singapore Technologies Engineering
Ltd..................................... 286,495
77,000 Singapore Telecommunications Ltd........ 158,992
------------
1,801,280
------------
SOUTH KOREA--0.2%
2,526 Samsung Electronics Co.................. 590,436
------------
SPAIN--3.1%
275,635 Banco Santander Central Hispano, SA..... 3,120,920
34,276 Centros Comerciales Pryca SA............ 535,530
59,556 Endesa SA............................... 1,182,481
163,700 Telefonica SA*.......................... 4,089,614
------------
8,928,545
------------
SWEDEN--2.8%
40,875 Skandia Forsakrings AB.................. 1,235,853
103,072 Telefonaktiebolaget LM
Ericson--B Shares....................... 6,632,908
------------
7,868,761
------------
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SWITZERLAND--5.0%
6,751 ABB Ltd.*............................... $ 825,127
3,090 Adecco SA............................... 2,404,669
7,330 Credit Suisse Group..................... 1,455,972
1,015 Nestle SA*.............................. 1,858,137
2,568 Novartis AG*............................ 3,768,033
236 Roche Holding AG*....................... 2,799,297
1,902 Zurich Allied AG*....................... 1,083,856
------------
14,195,091
------------
THAILAND--0.0%
40,600 ABN Amro Asia Securities Public Co.
Ltd.*................................... 76,226
69,100 National Petrochemical Public Co.
Ltd.*................................... 76,829
------------
153,055
------------
UNITED KINGDOM--16.3%
95,852 Bank of Scotland........................ 1,107,395
71,085 Barclays PLC............................ 2,049,988
698,138 BP Amoco PLC............................ 7,028,613
262,058 British Telecommunications PLC*......... 6,347,177
122,023 Carlton Communications PLC.............. 1,198,931
22,641 COLT Telecom Group PLC*................. 1,168,042
156,900 Compass Group PLC....................... 2,134,444
68,370 Dixons Group PLC........................ 1,643,812
20,163 Energis PLC*............................ 968,251
144,886 Glaxo Wellcome PLC...................... 4,103,438
107,833 HSBC Holdings PLC....................... 1,495,673
324,863 Invensys PLC............................ 1,757,264
153,175 Kingfisher PLC.......................... 1,688,039
229,325 Lloyds TSB Group PLC.................... 2,862,350
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
75,740 Misys PLC............................... $ 1,153,264
61,809 Pearson PLC............................. 2,004,044
42,011 SEMA Group PLC.......................... 751,614
156,117 SmithKline Beecham PLC.................. 1,983,887
61,258 Smiths Industries PLC................... 897,638
879,920 Vodafone AirTouch PLC................... 4,337,013
------------
46,680,877
------------
TOTAL COMMON STOCKS
(Cost $200,663,081)..................... 283,392,492
------------
</TABLE>
<TABLE>
<C> <S> <C>
WARRANTS--0.0%
GERMANY--0.0%
50 Muenchener Ruecksversich expiring
6/30/2002
(Cost $2,030)........................... 2,670
------------
TOTAL INVESTMENTS
(Cost $200,665,111)(a)--99.2%........... 283,395,162
Other assets less liabilities--0.8%..... 2,212,237
------------
NET ASSETS--100.0%...................... $285,607,399
============
</TABLE>
* NON-INCOME PRODUCING SECURITY.
(a) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT DECEMBER 31, 1999, NET UNREALIZED APPRECIATION WAS $82,730,051
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $89,351,220 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $6,621,168.
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
INDUSTRY DIVERSIFICATION
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF
TOTAL
US$ VALUE NET ASSETS
------------ ----------
<S> <C> <C>
Aerospace and Defense................... $ 355,044 0.1%
Appliances.............................. 168,464 0.1
Automotive.............................. 4,642,009 1.6
Bank Holding Companies.................. 1,725,634 0.6
Banking................................. 30,121,936 10.5
Banking and Finance..................... 942,353 0.3
Broadcasting............................ 403,753 0.1
Brokerage Services...................... 2,236,692 0.8
Building Materials...................... 6,824,015 2.4
Chemicals--Basic........................ 7,023,450 2.5
Chemicals--Diversified.................. 2,389,818 0.8
Chemicals--Petroleum and Inorganic...... 148,395 0.1
Chemicals--Specialty.................... 1,173,882 0.4
Computers--Software & Peripherals....... 16,148,672 5.6
Conglomerates........................... 1,429,538 0.5
Consumer Staples........................ 3,547,705 1.2
Defense................................. 286,495 0.1
Electrical Equipment.................... 1,681,030 0.6
Electrical and Electronic Equipment..... 1,757,264 0.6
Electronic Equipment & Components....... 17,138,235 6.0
Electronics............................. 1,549,545 0.5
Energy.................................. 3,996,623 1.4
Engineering............................. 825,127 0.3
Environment Managment................... 843,665 0.3
Financial Services...................... 8,683,431 3.0
Financial Services--Diversified......... 1,459,819 0.5
Food & Beverages........................ 8,858,624 3.1
Food Products........................... 740,539 0.3
Healthcare.............................. 2,651,499 0.9
Holdings Companies--Diversified......... 2,703,597 0.9
Insurance............................... 7,289,331 2.6
Insurance--Multi--Line.................. 2,059,587 0.7
Leisure and Recreation Products......... 44,216 0.0
Machinery & Engineering................. 270,676 0.1
Machinery & Equipment................... 2,464,058 0.9
Manufacturing........................... 1,189,399 0.4
Manufacturing--Miscellaneous............ 1,622,103 0.6
Materials............................... 244,697 0.1
Media................................... 4,243,717 1.5
Metal--Non--Ferrous..................... 1,128,348 0.4
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
INDUSTRY DIVERSIFICATION (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF
TOTAL
US$ VALUE NET ASSETS
------------ ----------
<S> <C> <C>
Oil and Gas............................. $ 6,160,879 2.1%
Oil--Integrated......................... 7,028,613 2.5
Pharmaceuticals......................... 9,329,270 3.3
Publishing.............................. 4,799,342 1.7
Real Estate Development................. 1,878,316 0.6
Retail--Food Stores..................... 2,591,473 0.9
Retail--Specialty Stores................ 1,899,709 0.7
Retailing............................... 13,388,326 4.7
Steel................................... 339,750 0.1
Telecommunications...................... 67,965,547 23.8
Trading Companies....................... 50,376 0.0
Transportation.......................... 3,366,672 1.2
Utilities............................... 3,915,240 1.4
Utilities--Gas.......................... 160,295 0.1
Utilities--Telecommunications........... 1,626,330 0.6
Utilities--Water........................ 3,388,916 1.2
Water Projects.......................... 1,674,821 0.6
Wholesale Trade--Miscellaneous.......... 818,302 0.3
------------ -------
Total Value of Investments.............. 283,395,162 99.2
Other Assets, Less Liabilities.......... 2,212,237 0.8
------------ -------
Net Assets.............................. $285,607,399 100.0%
============ =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at value (Cost $200,665,111)...................................... $ 283,395,162
Foreign currency, at value (cost $387,514).................................... 351,078
Cash.......................................................................... 2,741,397
Receivables:
Investments sold............................................................ 3,799,553
Currency Contracts.......................................................... 2,386,029
Capital stock sold.......................................................... 765,786
Dividends................................................................... 268,968
Deferred organization costs and other assets.................................. 15,154
--------------
TOTAL ASSETS................................................................ 293,723,127
--------------
LIABILITIES:
Payables:
Investments purchased....................................................... 3,885,820
Currency contracts purchased................................................ 2,668,453
Services provided by The Bank of New York and Administrator................. 208,863
Capital stock repurchased..................................................... 1,280,386
Accrued expenses and other liabilities........................................ 72,206
--------------
TOTAL LIABILITIES........................................................... 8,115,728
--------------
NET ASSETS:..................................................................... $ 285,607,399
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 16,140
Capital surplus............................................................... 190,934,297
Accumulated net investment income............................................. 1,298
Accumulated net realized gain on investments.................................. 11,988,872
Net unrealized appreciation on investments.................................... 82,730,051
Net unrealized depreciation on foreign currency denominated assets and
liabilities................................................................. (63,259)
--------------
NET ASSETS...................................................................... $ 285,607,399
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 273,597,427
==============
Shares outstanding............................................................ 15,457,598
==============
Net asset value, offering price and repurchase price per share................ $ 17.70
==============
INVESTOR SHARES:
Net assets.................................................................... $ 12,009,972
==============
Shares outstanding............................................................ 682,648
==============
Net asset value, offering price and repurchase price per share................ $ 17.59
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $317,164)...................... $ 2,564,663
--------------
EXPENSES:
Advisory...................................................................... 1,736,934
Administration................................................................ 408,689
12b-1 fee--Investor Shares.................................................... 18,372
Custodian..................................................................... 120,694
Transfer agent................................................................ 97,798
Accounting services........................................................... 77,696
Registration and filings...................................................... 27,023
Directors..................................................................... 17,424
Reports to shareholders....................................................... 14,269
Legal......................................................................... 7,578
Audit......................................................................... 5,975
Organization.................................................................. 4,015
Cash management............................................................... 3,435
Insurance..................................................................... 2,090
Other......................................................................... 24,006
--------------
TOTAL EXPENSES.............................................................. 2,565,998
Fees waived by the Bank of New York........................................... (8,267)
Earnings credit adjustment (Note 3)........................................... (97)
--------------
NET EXPENSES................................................................ 2,557,634
--------------
NET INVESTMENT INCOME....................................................... 7,029
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain on:
Investments................................................................. 33,358,923
Foreign currency transactions............................................... 965,065
--------------
Net realized gain on investments.............................................. 34,323,988
--------------
Increase (decrease) in unrealized appreciation on:
Investments................................................................. 51,973,585
Foreign currency denominated assets and liabilities......................... (86,015)
--------------
Net unrealized gain on investments and foreign currency denominated assets and
liabilities during the year................................................. 51,887,570
--------------
Net realized and unrealized gain on investments and foreign currency
transactions................................................................ 86,211,558
--------------
Net increase in net assets resulting from operations.......................... $ 86,218,587
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------
1999 1998
------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 7,029 $ 768,013
Net realized gain (loss) on investments and foreign currency transactions..... 34,323,988 (7,140,332)
Increase in unrealized appreciation on investments and foreign currency
denominated assets and liabilities during the year.......................... 51,887,570 29,939,347
------------- ------------
Net increase in net assets resulting from operations........................ 86,218,587 23,567,028
------------- ------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (495,845) (233,491)
Investor Shares........................... (1,523) (6,904)
Distributions from capital gains:
Institutional Shares............................. (10,390,044) -0-
Investor Shares.................................. (331,182) -0-
------------- ------------
(11,218,594) (240,395)
------------- ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 204,005,338 99,585,768
Investor Shares.................................. 131,551,449 2,506,420
Proceeds from shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... 7,833,763 53,831
Investor Shares............................................. 332,070 6,854
Cost of capital stock repurchased:
Institutional Shares............................ (186,743,669) (39,696,041)
Investor Shares................................. (129,125,341) (395,823)
------------- ------------
Increase in net assets resulting from capital stock transactions............ 27,853,610 62,061,009
------------- ------------
INCREASE IN NET ASSETS.................................................... 102,853,603 85,387,642
NET ASSETS:
Beginning of year............................................................. 182,753,796 97,366,154
------------- ------------
End of year................................................................... $ 285,607,399 $182,753,796
============= ============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 14,461,518 8,210,790
Investor Shares.................................................... 9,214,607 212,610
Shares issued on reinvestment of dividends:
Institutional Shares................... 473,630 4,273
Investor Shares........................ 20,199 546
Shares repurchased:
Institutional Shares......................................... (13,228,139) (3,331,804)
Investor Shares.............................................. (8,972,084) (33,304)
------------- ------------
Net increase................................................................ 1,969,731 5,063,111
Shares outstanding, beginning of year......................................... 14,170,515 9,107,404
------------- ------------
Shares outstanding, end of year............................................... 16,140,246 14,170,515
============= ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
----------------------------------------------
FOR THE
PERIOD
APRIL 1, 1997*
YEAR ENDED DECEMBER 31, THROUGH
---------------------------- DECEMBER 31,
1999 1998 1997
----------- ------------ --------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning
of period.................. $ 12.90 $ 10.69 $ 10.00
-------- -------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income........ -0- 0.03 0.02
Net realized and unrealized
gain on investments and
foreign currency
transactions............... 5.55 2.20 0.67
-------- -------- -------
Total from investment
operations............... 5.55 2.23 0.69
-------- -------- -------
DIVIDENDS
Dividends from net investment
income..................... (0.03) (0.02) -0-
Distributions from capital
gains...................... (0.72) -0- -0-
-------- -------- -------
Total dividends and
distributions............ (0.75) (0.02) -0-
-------- -------- -------
Net asset value at end of
period..................... $ 17.70 $ 12.90 $ 10.69
======== ======== =======
TOTAL RETURN:................ 43.45% 20.84% 6.90%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)............ $273,597 $177,363 $94,806
Ratio to average net assets
of:
Expenses, net of waiver
from The Bank of New
York..................... 1.24% 1.27% 1.26%***
Expenses, prior to waiver
from The Bank of New
York..................... 1.24% 1.32% 1.49%***
Net investment income
net of waiver from The
Bank of New York......... 0.01% 0.54% 0.26%***
Portfolio turnover rate...... 84% 75% 36%
<CAPTION>
INVESTOR SHARES
------------------------------------------------
FOR THE
PERIOD
MAY 1, 1997*
YEAR ENDED DECEMBER 31, THROUGH
----------------------------- DECEMBER 31,
1999 1998 1997
------------ ------------ ---------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning
of period.................. $ 12.84 $ 10.66 $ 10.19
------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income........ (0.04) 0.03 0.02
Net realized and unrealized
gain on investments and
foreign currency
transactions............... 5.51 2.17 0.45
------- ------- -------
Total from investment
operations............... 5.47 2.20 0.47
------- ------- -------
DIVIDENDS
Dividends from net investment
income..................... -0- (0.02) -0-
Distributions from capital
gains...................... (0.72) -0- -0-
------- ------- -------
Total dividends and
distributions............ (0.72) (0.02) -0-
------- ------- -------
Net asset value at end of
period..................... $ 17.59 $ 12.84 $ 10.66
======= ======= =======
TOTAL RETURN:................ 43.00% 20.61% 4.61%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)............ $12,010 $ 5,391 $ 2,560
Ratio to average net assets
of:
Expenses, net of waiver
from The Bank of New
York..................... 1.52% 1.52% 1.52%***
Expenses, prior to waiver
from The Bank of New
York..................... 1.55% 1.65% 1.75%***
Net investment income
net of waiver from The
Bank of New York......... (0.27)% 0.32% 0.33%***
Portfolio turnover rate...... 84% 75% 36%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES &
OBLIGATIONS--40.0%
FEDERAL HOME LOAN BANK--0.8%
$ 625,000 9.00%, 3/15/06.......................... $ 683,176
-----------
FEDERAL HOME LOAN MORTGAGE
CORP.--4.9%
4,350,000 5.75%, 4/15/08.......................... 3,989,324
-----------
FEDERAL NATIONAL MORTGAGE
ASSOC.--6.7%
750,000 6.41%, 5/22/00.......................... 750,791
3,450,000 5.13%, 2/13/04.......................... 3,239,995
1,500,000 5.75%, 6/15/05.......................... 1,423,970
-----------
5,414,756
-----------
TENNESSEE VALLEY AUTHORITY--7.6%
1,350,000 6.00%, 11/01/00......................... 1,344,915
5,000,000 6.13%, 7/15/03.......................... 4,849,150
-----------
6,194,065
-----------
UNITED STATES TREASURY BONDS--1.1%
850,000 7.25%, 5/15/16.......................... 888,781
-----------
UNITED STATES TREASURY NOTES--18.9%
1,400,000 6.75%, 4/30/00.......................... 1,404,813
2,700,000 5.75%, 8/15/03.......................... 2,643,470
3,000,000 5.88%, 11/15/05......................... 2,912,814
3,250,000 6.88%, 5/15/06.......................... 3,306,875
5,075,000 6.63%, 5/15/07.......................... 5,097,203
-----------
15,365,175
-----------
TOTAL UNITED STATES GOVERNMENT AGENCIES
& OBLIGATIONS
(Cost $34,569,691)...................... 32,535,277
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS--38.1%
FEDERAL HOME LOAN MORTGAGE
CORP.--14.1%
$ 275,000 Series 1176-H,
8.00%, 12/15/06......................... $ 280,328
500,000 Series 1338-J,
7.00%, 2/15/07.......................... 500,670
52,003 Series 1663-D,
7.00%, 8/15/11.......................... 51,406
1,662,000 Series 1407-PK,
7.00%, 8/15/21.......................... 1,622,046
2,100,000 Series 1494-PJ,
6.85%, 1/15/22.......................... 2,020,893
453,000 Series 1588-TC,
6.50%, 9/15/23.......................... 432,720
1,168,000 Series 1602-H,
6.50%, 10/15/23......................... 1,065,111
2,431,000 Series 1608-O,
6.50%, 11/15/23......................... 2,224,821
500,000 Series 1621-M,
6.50%, 11/15/23......................... 486,960
323,000 Series 1633-C,
6.50%, 12/15/23......................... 299,212
2,099,000 Series 1669-L,
6.50%, 2/15/24.......................... 2,003,999
498,000 Series 1672-N,
7.00%, 2/15/24.......................... 483,914
-----------
11,472,080
-----------
FEDERAL NATIONAL MORTGAGE
ASSOC.--24.0%
878,137 Series 1994-86PE,
6.00%, 9/25/06.......................... 873,338
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
$ 573,263 Series 1988-15A,
9.00%, 6/25/18.......................... $ 595,868
388,904 Series 1992-129J,
4.00%, 7/25/20.......................... 367,277
1,040,000 Series 1992-214PK,
7.00%, 9/25/20.......................... 1,021,779
3,826,661 Series G92-15Z,
7.00%, 1/25/22.......................... 3,733,763
285,000 Series G93-34PH,
6.35%, 2/25/22.......................... 268,911
800,000 Series 1993-96PJ,
7.00%, 8/25/22.......................... 779,616
665,818 Series 1992-172M,
7.00%, 9/25/22.......................... 625,581
1,166,915 Series 1993-141Z,
7.00%, 8/25/23.......................... 1,084,459
2,875,000 Series 1993-149M,
7.00%, 8/25/23.......................... 2,712,270
1,621,000 Series 1993-252N,
6.50%, 8/25/23.......................... 1,539,383
3,110,000 Series 1993-178PK,
6.50%, 9/25/23.......................... 2,798,844
1,538,000 Series 1993-203B,
6.50%, 10/25/23......................... 1,458,778
850,000 Series 1993-203PL,
6.50%, 10/25/23......................... 793,271
903,000 Series 1993-225C-UB,
6.50%, 12/25/23......................... 863,981
-----------
19,517,119
-----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $32,143,533)...................... 30,989,199
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES--16.8%
FEDERAL HOME LOAN MORTGAGE
CORP.--6.7%
$ 61,824 Pool #218711,
8.00%, 10/01/02......................... $ 62,654
105,299 Pool #251836,
8.50%, 5/01/04.......................... 107,275
239,335 Pool #182217,
8.00%, 12/01/04......................... 242,390
42,063 Pool #502185,
8.50%, 7/01/05.......................... 43,118
1,676,188 Gold Pool #E49415,
6.50%, 7/01/08.......................... 1,642,769
77,778 Pool #184275,
8.25%, 9/01/08.......................... 80,047
14,095 Pool #160062,
9.50%, 10/01/08......................... 14,773
17,348 Pool #160065,
9.50%, 11/01/08......................... 18,182
17,632 Pool #160066,
9.75%, 11/01/08......................... 18,254
177,185 Pool #185743,
8.50%, 12/01/08......................... 181,383
238,786 Pool #251974,
8.50%, 4/01/09.......................... 245,069
308,493 Pool #185964,
8.50%, 2/01/10.......................... 316,634
249,152 Gold Pool #E20201,
7.50%, 10/01/10......................... 251,584
1,343,667 Gold Pool #G10439,
6.50%, 1/01/11.......................... 1,312,487
254,971 Gold Pool #E00417,
7.00%, 2/01/11.......................... 252,961
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
$ 176,475 Pool #555045,
8.00%, 5/01/19.......................... $ 178,679
439,806 Gold Pool #A01217,
8.50%, 4/01/20.......................... 454,524
-----------
5,422,783
-----------
FEDERAL NATIONAL MORTGAGE
ASSOC.--3.6%
25,415 Pool #34510,
7.25%, 8/01/01.......................... 25,398
55,681 Pool #168430,
7.00%, 7/01/03.......................... 55,558
500,704 Pool #195152,
7.00%, 1/01/08.......................... 498,293
267,627 Pool #81860,
8.00%, 4/01/09.......................... 272,180
321,176 Pool #278437,
7.50%, 5/01/09.......................... 323,967
164,732 Pool #6222,
9.00%, 4/01/16.......................... 172,040
323,512 Pool #124118,
9.00%, 3/01/22.......................... 338,179
262,191 Pool #320514,
6.50%, 9/01/25.......................... 249,222
978,141 Gold Pool #446431,
8.50%, 10/01/26......................... 1,006,876
-----------
2,941,713
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--6.5%
$ 23,122 Pool #6400,
8.00%, 6/15/05.......................... $ 23,370
28,089 Pool #7774,
8.00%, 9/15/05.......................... 28,390
28,755 Pool #7038,
8.00%, 10/15/05......................... 29,063
38,947 Pool #11310,
8.00%, 11/15/05......................... 39,365
7,965 Pool #9839,
8.00%, 7/15/06.......................... 8,051
24,506 Pool #10459,
8.00%, 8/15/06.......................... 24,769
63,841 Pool #10419,
8.00%, 9/15/06.......................... 64,526
27,942 Pool #12590,
8.00%, 9/15/06.......................... 28,242
68,463 Pool #14295,
8.00%, 1/15/07.......................... 69,198
62,799 Pool #204365,
9.00%, 3/15/17.......................... 66,014
250,032 Pool #247223,
9.00%, 4/15/18.......................... 262,751
29,740 Pool #177793,
9.50%, 5/15/19.......................... 31,663
9,662 Pool #256032,
8.50%, 10/15/19......................... 9,997
6,668 Pool #284645,
8.50%, 2/15/20.......................... 6,893
21,196 Pool #290778,
9.50%, 5/15/20.......................... 22,565
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
$ 22,507 Pool #319650,
7.00%, 11/15/22......................... $ 21,934
48,644 Pool #350532,
6.50%, 6/15/23.......................... 46,250
1,386,911 Pool #351405,
6.50%, 1/15/24.......................... 1,315,713
134,997 Pool #359470,
7.00%, 1/15/24.......................... 131,408
232,141 Pool #376445,
6.50%, 4/15/24.......................... 220,224
116,574 Pool #386348,
7.50%, 6/15/24.......................... 115,912
1,235,085 Pool #780035,
6.50%, 7/15/24.......................... 1,171,681
167,580 Pool #407323,
8.25%, 4/15/25.......................... 170,828
712,969 Pool #464704,
8.00%, 7/15/28.......................... 720,853
637,372 Pool #464820,
7.00%, 9/15/28.......................... 616,195
-----------
5,245,855
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $14,002,989)...................... 13,610,351
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
MONEY MARKET FUND--4.3%
$3,456,519 ACM Institutional Reserves (Government
Portfolio), 5.54% (a) (Cost
$3,456,519)............................. $ 3,456,519
-----------
TOTAL INVESTMENTS
(Cost $84,172,732)(b)--99.2%............ 80,591,346
Other assets less
liabilities--0.8%....................... 677,416
-----------
NET ASSETS--100.0%...................... $81,268,762
===========
</TABLE>
(a) REPRESENTS ANNUALIZED YIELD AT DECEMBER 31, 1999.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT DECEMBER 31, 1999, NET UNREALIZED DEPRECIATION WAS $3,581,386
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED DEPRECIATION OF $3,587,189 AND AGGREGATE GROSS UNREALIZED
APPRECIATION OF $5,803.
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investment at value
(Cost $84,172,732).......................................................... $ 80,591,346
Cash.......................................................................... 209
Receivables:
Interest.................................................................... 767,686
Capital stock sold.......................................................... 63,595
Investments sold............................................................ 40,629
Dividends................................................................... 4,421
Other assets.................................................................. 3,598
--------------
TOTAL ASSETS................................................................ 81,471,484
--------------
LIABILITIES:
Payables:
Dividends................................................................... 129,133
Services provided by the Bank of New York and Administrator................. 50,254
Capital stock repurchased................................................... 7,024
Accrued expenses and other liabilities........................................ 16,311
--------------
TOTAL LIABILITIES........................................................... 202,722
--------------
NET ASSETS:..................................................................... $ 81,268,762
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 8,634
Capital surplus............................................................... 87,144,141
Accumulated net investment loss............................................... (57,308)
Accumulated net realized loss on investments.................................. (2,245,319)
Net unrealized depreciation on investments.................................... (3,581,386)
--------------
$ 81,268,762
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 68,762,145
==============
Shares outstanding............................................................ 7,304,844
==============
Net asset value, offering price and repurchase price per share................ $ 9.41
==============
INVESTOR SHARES:
Net assets.................................................................... $ 12,506,617
==============
Shares outstanding............................................................ 1,329,216
==============
Net asset value, offering price and repurchase price per share................ $ 9.41
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 5,261,581
Dividends..................................................................... 88,171
--------------
TOTAL INCOME................................................................ 5,349,752
--------------
EXPENSES:
Advisory...................................................................... 406,845
Administration................................................................ 162,738
12b-1 fee--Investor Shares.................................................... 30,930
Accounting services........................................................... 60,015
Transfer agent................................................................ 39,493
Custodian..................................................................... 25,892
Directors..................................................................... 15,782
Reports to shareholders....................................................... 9,234
Registration and filings...................................................... 8,715
Audit......................................................................... 4,904
Legal......................................................................... 3,359
Cash management............................................................... 1,057
Insurance..................................................................... 1,026
Other......................................................................... 15,807
--------------
TOTAL EXPENSES.............................................................. 785,797
Fees waived by The Bank of New York (Note 3).................................. (89,191)
Earnings credit adjustment (Note 3)........................................... (467)
--------------
NET EXPENSES................................................................ 696,139
--------------
NET INVESTMENT INCOME....................................................... 4,653,613
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments.............................................. 109,084
Decrease in unrealized depreciation on investments during the year............ (5,412,826)
--------------
Net realized and unrealized loss on investments............................... (5,303,742)
--------------
Net decrease in net assets resulting from operations.......................... $ (650,129)
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------
1999 1998
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 4,653,613 $ 4,212,416
Net realized gain on investments.............................................. 109,084 390,562
Increase (decrease) in unrealized appreciation on investments during the
year........................................................................ (5,412,826) 848,611
------------ ------------
Net increase (decrease) in net assets resulting from operations............. (650,129) 5,451,589
------------ ------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (3,972,756) (3,582,992)
Investor Shares........................... (680,857) (629,424)
------------ ------------
(4,653,613) (4,212,416)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 18,730,232 18,433,862
Investor Shares.................................. 2,095,918 3,922,671
Proceeds from shares issued on reinvestment of dividends:
Institutional Shares...... 2,466,691 2,226,503
Investor Shares........... 534,152 462,394
Cost of capital stock repurchased:
Institutional Shares............................ (12,875,346) (20,886,557)
Investor Shares................................. (1,847,999) (2,515,264)
------------ ------------
Net increase in net assets resulting from capital stock transactions........ 9,103,648 1,643,609
------------ ------------
INCREASE IN NET ASSETS.................................................... 3,799,906 2,882,782
NET ASSETS:
Beginning of year............................................................. 77,468,856 74,586,074
------------ ------------
End of year................................................................... $ 81,268,762 $ 77,468,856
============ ============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 1,910,666 1,849,294
Investor Shares.................................................... 216,660 393,783
Shares issued on reinvestment of dividends:
Institutional Shares................... 254,214 223,193
Investor Shares........................ 55,083 46,361
Shares repurchased:
Institutional Shares......................................... (1,326,556) (2,099,046)
Investor Shares.............................................. (190,193) (251,939)
------------ ------------
Net increase................................................................ 919,874 161,646
Shares outstanding, beginning of year......................................... 7,714,186 7,552,540
------------ ------------
Shares outstanding, end of year............................................... 8,634,060 7,714,186
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-------------------------------------------------------
YEAR YEAR FOR THE PERIOD
ENDED ENDED APRIL 1, 1997*
DECEMBER 31, DECEMBER 31, THROUGH
1999 1998 DECEMBER 31, 1997
----------------- ----------------- -----------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.04 $ 9.88 $ 9.53
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.56 0.56 0.42
Net realized and unrealized gain (loss)
on investments........................ (0.64) 0.16 0.35
------- ------- -------
Total from investment operations...... (0.08) 0.72 0.77
------- ------- -------
DIVIDENDS
Dividends from net investment income.... (0.55) (0.56) (0.42)
------- ------- -------
Net asset value at end of period........ $ 9.41 $ 10.04 $ 9.88
======= ======= =======
TOTAL RETURN:........................... (0.73)% 7.49% 8.27%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $12,507 $64,944 $64,128
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.82% 0.90% 0.90%***
Expenses, prior to waiver from The
Bank of New York.................... 0.92% 0.96% 0.99%***
Net investment income, net of waiver
from The Bank of New York........... 5.76% 5.63% 5.79%***
Portfolio turnover rate................. 16% 61% 41%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
---------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of year.... $ 10.04 $ 9.87 $ 9.70 $ 9.94 $ 9.10
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.53 0.54 0.54 0.54 0.53
Net realized and unrealized gain (loss)
on investments........................ (0.63) 0.17 0.17 (0.24) 0.84
------- ------- ------- ------- -------
Total from investment operations...... (0.10) 0.71 0.71 0.30 1.37
------- ------- ------- ------- -------
DIVIDENDS
Dividends from net investment income.... (0.53) (0.54) (0.54) (0.54) (0.53)
------- ------- ------- ------- -------
Net asset value at end of year.......... $ 9.41 $ 10.04 $ 9.87 $ 9.70 $ 9.94
======= ======= ======= ======= =======
TOTAL RETURN:+.......................... (0.98)% 7.33% 7.54% 3.16% 15.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year
(000's omitted)....................... $68,762 $12,525 $10,458 $64,117 $60,659
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.07% 1.15% 1.08% 1.02% 1.06%
Expenses, prior to waiver from The
Bank of New York.................... 1.20% 1.26% 1.11% 1.02% 1.06%
Net investment income, net of waiver
from The Bank of New York........... 5.50% 5.38% 5.57% 5.54% 5.52%
Portfolio turnover rate................. 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.
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
CORPORATE BONDS--51.8%
AEROSPACE AND DEFENSE--1.3%
$ 5,500,000 Raytheon Co.,
6.30%, 3/15/05.......................... $ 5,177,205
------------
BANKING--1.8%
6,400,000 Interamerican Development Bank, 8.50%,
03/15/11................................ 7,049,152
------------
BEVERAGES--BREWERS--1.1%
5,000,000 Anheuser-Busch Companies, Inc.,
5.75%, 1/15/11.......................... 4,352,615
------------
CABLE TV SYSTEMS--0.5%
3,500,000 Charter Communications Holdings LLC,
0.00%, 4/01/11.......................... 2,051,875
------------
COMPUTERS--MICRO--1.1%
3,000,000 IBM Corp.,
5.625%, 4/12/04......................... 2,847,915
1,470,000 IBM Corp.,
6.45%, 8/01/07.......................... 1,408,286
------------
4,256,201
------------
CONGLOMERATES--2.2%
9,075,000 Tenneco Packaging PTV, 7.20%,
12/15/05................................ 8,691,636
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
ENTERTAINMENT--6.4%
$ 3,000,000 Carmike Cinemas, Inc., Series B,
9.375%, 2/01/09......................... $ 2,602,500
4,500,000 PRIMEDIA, Inc., Series B, 8.50%,
2/01/06................................. 4,432,500
5,500,000 Time Warner, Inc.,
7.75%, 6/15/05.......................... 5,573,304
7,250,000 Time Warner, Inc. PATS, 6.10%,
12/30/01................................ 7,130,186
5,700,000 Viacom, Inc.,
7.75%, 6/01/05.......................... 5,761,942
------------
25,500,432
------------
FINANCIAL SERVICES--18.9%
7,950,000 Aetna Services, Inc., 6.97%, 8/15/36.... 7,744,715
3,200,000 Ameritech Capital Funding Corp., 6.30%,
10/15/04................................ 3,094,083
5,000,000 Block Financial Corp., 6.75%,
11/01/04................................ 4,889,230
1,580,000 Citigroup, Inc.,
6.20%, 3/15/09.......................... 1,452,056
5,000,000 Ford Motor Credit Co., 6.70%, 7/16/04... 4,896,725
3,750,000 General Electric Capital Corp., 7.875%,
12/01/06................................ 3,847,841
12,970,000 General Motors Acceptance Corp.,
6.15%, 4/05/07.......................... 12,046,186
10,000,000 Goldman Sachs Group, L.P., 6.75%,
2/15/06................................. 9,495,160
6,800,000 Lehman Brothers Holdings, Inc., 7.375%,
5/15/04................................. 6,757,806
7,089,000 Merrill Lynch & Co., 6.55%, 8/01/04..... 6,881,016
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
$ 4,000,000 Merrill Lynch & Co., 6.00%, 7/15/05..... $ 3,754,112
4,000,000 Morgan Stanley Dean Witter, 7.125%,
1/15/03................................. 3,997,812
950,000 Salomon Inc.,
7.00%, 6/15/03.......................... 938,837
500,000 Salomon Inc.,
6.875%, 12/15/03........................ 491,619
4,850,000 Salomon Smith Barney, 6.25%, 1/15/05.... 4,597,262
468,000 Sears Roebuck Acceptance Corp., 6.25%,
5/01/09................................. 412,348
------------
75,296,808
------------
FOOD PROCESSING--3.1%
8,075,000 Nabisco, Inc.,
6.85%, 6/15/05.......................... 7,712,223
5,000,000 Nabisco, Inc.,
6.125%, 2/01/33......................... 4,798,280
------------
12,510,503
------------
HOTELS AND GAMING--1.1%
4,500,000 Hilton Hotels Corp., 7.375%, 6/01/02.... 4,419,419
------------
HOUSEHOLD & PERSONAL CARE PRODUCTS--1.1%
4,570,000 Procter & Gamble Co., 6.60%, 12/15/04... 4,510,892
------------
INDUSTRIAL & COMMERCIAL
SERVICES--1.2%
5,000,000 WMX Technologies, Inc., 7.70%,
10/01/02................................ 4,789,200
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
MEDIA--2.2%
$ 1,750,000 Chancellor Media Corp., 9.00%,
10/01/08(a)............................. $ 1,820,000
3,970,000 Liberty Media Group, 7.875%, 7/15/09.... 3,958,547
3,000,000 USA Networks, Inc., 6.75%,
11/15/05(a)............................. 2,865,774
------------
8,644,321
------------
OFFICE EQUIPMENT--2.1%
9,000,000 Xerox Capital Europe PLC, 5.875%,
5/15/04................................. 8,424,531
------------
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................................. 7,691,904
------------
RETAIL--DEPARTMENT STORES--1.3%
5,230,000 Sears Roebuck Co., Series 3, 6.92%,
6/17/04................................. 5,072,697
------------
TELECOMMUNICATIONS--2.8%
5,000,000 GTE Corp.,
7.51%, 4/01/09.......................... 5,028,845
5,000,000 Tele-Communications, Inc., 6.58%,
2/15/05(b).............................. 5,211,165
1,000,000 US West Communications, 6.625%,
9/15/05................................. 965,393
------------
11,205,403
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
UTILITIES--ELECTRIC--0.6%
$ 2,268,293 Niagara Mohawk Power Corp., Series C,
7.125%, 7/01/01......................... $ 2,262,600
------------
TOTAL CORPORATE BONDS
(Cost $214,573,796)..................... 206,168,019
------------
</TABLE>
<TABLE>
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS--29.6%
FEDERAL HOME LOAN MORTGAGE
CORP.--8.9%
8,055,000 5.50%, 5/15/02.......................... 7,860,883
10,350,000 6.25%, 10/15/02......................... 10,243,033
2,700,000 7.93%, 1/20/05.......................... 2,810,751
15,905,000 5.75%, 4/15/08.......................... 14,586,253
------------
35,500,920
------------
FEDERAL NATIONAL MORTGAGE
ASSOC.--9.3%
2,440,000 0.00%, 8/15/01.......................... 2,204,769
18,451,000 5.13%, 2/13/04.......................... 17,327,869
7,500,000 5.75%, 6/15/05.......................... 7,119,847
1,000,000 6.06%, 2/03/06.......................... 944,920
10,000,000 6.50%, 4/29/09.......................... 9,385,380
------------
36,982,785
------------
TENNESSEE VALLEY AUTHORITY--0.0%
275,000 6.00%, 11/01/00......................... 273,964
------------
UNITED STATES TREASURY BONDS--4.8%
13,900,000 6.25%, 2/15/07.......................... 13,682,813
10,000,000 0.00%, 5/15/09.......................... 5,350,740
------------
19,033,553
------------
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS
(CONTINUED)
UNITED STATES TREASURY NOTES--6.6%
$ 1,100,000 6.50%, 8/15/05.......................... $ 1,100,344
15,000,000 7.00%, 7/15/06.......................... 15,365,625
7,300,000 6.50%, 10/15/06......................... 7,279,472
2,532,000 6.00%, 8/15/09.......................... 2,453,668
------------
26,199,109
------------
TOTAL UNITED STATES GOVERNMENT AGENCIES
& OBLIGATIONS
(Cost $122,429,859)..................... 117,990,331
------------
</TABLE>
<TABLE>
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES--10.3%
FEDERAL HOME LOAN MORTGAGE
CORP.--6.4%
60,332 Pool #180686,
6.00%, 8/01/03.......................... 58,752
138,686 Pool #160074,
10.00%, 4/01/09......................... 144,562
674,629 Pool #180006,
9.25%, 8/01/11.......................... 711,317
9,837,533 Gold Pool #C00785, 6.50%, 6/01/29....... 9,284,172
7,984,032 Gold Pool #C32140, 6.50%, 10/01/29...... 7,534,930
8,000,000 Gold Pool # C00896, 7.50%, 12/01/29..... 7,929,166
------------
25,662,899
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
FEDERAL NATIONAL MORTGAGE
ASSOC.--0.1%
$ 397,795 Pool #219238,
8.50%, 2/01/09.......................... $ 408,445
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--3.8%
103,420 Pool #13416,
8.00%, 9/15/06.......................... 104,530
41,357 Pool #13688,
8.00%, 11/15/06......................... 41,801
81,499 Pool #12766,
8.00%, 12/15/06......................... 82,373
71,716 Pool #16080,
7.50%, 4/15/07.......................... 70,969
708,075 Pool #21598,
8.00%, 2/15/08.......................... 715,672
134,887 Pool #27246,
9.00%, 12/15/08......................... 141,196
62,606 Pool #31570,
9.50%, 6/15/09.......................... 66,661
39,689 Pool #34366,
9.50%, 9/15/09.......................... 42,260
43,548 Pool #33765,
9.50%, 10/15/09......................... 46,369
69,966 Pool #34704,
9.50%, 10/15/09......................... 74,326
358,441 Pool #171774,
9.00%, 9/15/16.......................... 375,206
148,198 Pool #199885,
9.50%, 11/15/17......................... 157,796
51,386 Pool #251646,
9.50%, 4/15/18.......................... 54,715
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
$ 37,348 Pool #290313,
9.50%, 5/15/20.......................... $ 39,767
980,210 Pool #319650,
7.00%, 11/15/22......................... 955,245
1,052,518 Pool #349306,
8.00%, 2/15/23.......................... 1,068,652
1,012,700 Pool #362262,
7.50%, 4/15/24.......................... 1,002,151
377,173 Pool #376445,
6.50%, 4/15/24.......................... 357,811
422,239 Pool #384069,
7.50%, 4/15/24.......................... 417,840
9,841,916 Pool #464686,
6.50%, 7/15/28.......................... 9,253,071
------------
15,068,411
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $41,735,008)...................... 41,139,755
------------
</TABLE>
<TABLE>
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS--3.9%
FEDERAL HOME LOAN MORTGAGE
CORP.--1.0%
380,851 Series 1531E,
6.00%, 1/15/06.......................... 380,181
1,000,000 Series 1678CA,
6.00%, 2/15/09.......................... 899,180
1,947,714 Series 1607ZB,
5.50%, 12/15/10......................... 1,937,667
992,790 Series 1627PJ,
6.00%, 3/15/23.......................... 908,065
------------
4,125,093
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE
ASSOC.--2.2%
$ 383,267 Series 1993-212C,
6.00%, 11/25/00......................... $ 379,951
5,300,000 Series 1993-96PJ,
7.00%, 8/25/22.......................... 5,164,956
3,108,921 Series 1993-199C,
5.80%, 10/25/23......................... 3,022,437
------------
8,567,344
------------
FIXED RATE SECURITIES--0.7%
2,652,433 Kidder Peabody Mortgage Assets Trust,
Series 22, Class D, 9.95%, 2/01/19...... 2,665,457
------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $15,597,228)...................... 15,357,894
------------
</TABLE>
<TABLE>
<C> <S> <C>
ASSET-BACKED SECURITIES--2.2%
ASSET BACKED SECURITIES--CREDIT CARDS--2.2%
2,725,000 Discover Card Master Trust I,
Series 1996-3, Class A, 6.05%,
8/18/08................................. 2,585,861
6,300,000 MBNA Master Credit Card Trust,
Series 1999-J, Class A, 7.00%,
2/15/12................................. 6,179,009
------------
8,764,870
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $8,925,443)....................... 8,764,870
------------
</TABLE>
<TABLE>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
MONEY MARKET FUND--0.6%
$ 2,604,862 ACM Institutional Reserves (Prime
Portfolio), 5.84%(c).................... $ 2,604,862
------------
TOTAL MONEY MARKET FUND
(Cost $2,604,862)....................... 2,604,862
------------
TOTAL INVESTMENTS
(Cost $405,886,196)(d)--98.4%........... 392,025,731
Other assets less liabilities--1.6%..... 6,261,168
------------
NET ASSETS--100.0%...................... $398,286,899
============
</TABLE>
PATS PASS-THRU ASSET TRUST SECURITY.
(a) ILLIQUID SECURITY, EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE
SECURITIES ACT OF 1933.
(b) INTEREST RATE SCHEDULED TO INCREASE TO 9.92% ON APRIL 1, 2004.
(c) REPRESENTS ANNUALIZED YIELD AT DECEMBER 31, 1999.
(d) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT DECEMBER 31, 1999, NET UNREALIZED DEPRECIATION WAS $13,840,465
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $428,351 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $14,268,816.
SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investment at value
(Cost $405,866,196)......................................................... $ 392,025,731
Receivables:
Interest.................................................................... 5,959,752
Capital stock sold.......................................................... 1,154,322
Investments sold............................................................ 28,013
Dividends................................................................... 23,857
Deferred organization costs and other assets.................................. 52,491
--------------
TOTAL ASSETS................................................................ 399,244,166
--------------
LIABILITIES:
Payables:
Dividends................................................................... 661,761
Services provided by the Bank of New York and Administrator................. 249,594
Capital stock repurchased................................................... 7,320
Accrued expenses and other liabilities........................................ 38,592
--------------
TOTAL LIABILITIES........................................................... 957,267
--------------
NET ASSETS:..................................................................... $ 398,286,899
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 40,486
Capital surplus............................................................... 414,042,098
Accumulated net investment loss............................................... (116,757)
Accumulated net realized loss on investments.................................. (1,838,463)
Net unrealized depreciation on investments.................................... (13,840,465)
--------------
$ 398,286,899
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 393,679,582
==============
Shares outstanding............................................................ 40,017,652
==============
Net asset value, offering price and repurchase price per share................ $ 9.84
==============
INVESTOR SHARES:
Net assets.................................................................... $ 4,607,317
==============
Shares outstanding............................................................ 468,093
==============
Net asset value, offering price and repurchase price per share................ $ 9.84
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 26,264,991
Dividends..................................................................... 311,779
--------------
TOTAL INCOME................................................................ 26,576,770
--------------
EXPENSES:
Advisory...................................................................... 1,992,534
Administration................................................................ 797,014
12b-1 fee--Investor Shares.................................................... 10,894
Transfer agent................................................................ 97,262
Accounting services........................................................... 59,800
Custodian..................................................................... 48,872
Reports to shareholders....................................................... 22,359
Organization.................................................................. 20,754
Legal......................................................................... 16,216
Directors..................................................................... 15,782
Registration and filings...................................................... 13,676
Audit......................................................................... 11,119
Insurance..................................................................... 5,014
Cash management............................................................... 4,900
Other......................................................................... 22,014
--------------
TOTAL EXPENSES.............................................................. 3,138,210
Fees waived by the Bank of New York (Note 3).................................. (1,463)
Earnings credit adjustment (Note 3)........................................... (4,095)
--------------
NET EXPENSES................................................................ 3,132,652
--------------
NET INVESTMENT INCOME....................................................... 23,444,118
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments.............................................. (1,931,004)
Decrease in unrealized appreciation on investments during the year............ (27,480,895)
--------------
Net realized and unrealized loss on investments............................... (29,411,899)
--------------
Net decrease in net assets resulting from operations.......................... $ (5,967,781)
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------
1999 1998
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 23,444,118 $ 21,685,735
Net realized gain (loss) on investments....................................... (1,931,004) 3,931,265
Increase (decrease) in unrealized appreciation on investments during the
year........................................................................ (27,480,895) 5,372,256
------------- -------------
Net increase (decrease) in net assets resulting from operations............. (5,967,781) 30,989,256
------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (23,199,170) (21,443,657)
Investor Shares........................... (244,948) (199,801)
Distributions from capital gains:
Institutional Shares............................. (684,312) (3,622,442)
Investor Shares.................................. (8,042) (35,655)
------------- -------------
(24,136,472) (25,301,555)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 150,144,716 91,886,282
Investor Shares.................................. 1,655,747 4,460,994
Proceeds from shares issued on reinvestment
of dividends and distributions: Institutional Shares........................ 3,083,923 5,687,853
Investor Shares.................................. 250,234 229,199
Cost of capital stock repurchased:
Institutional Shares............................ (122,291,295) (61,019,124)
Investor Shares................................. (955,565) (2,650,772)
------------- -------------
Net increase in net assets resulting from capital stock transactions........ 31,887,760 38,594,432
------------- -------------
INCREASE IN NET ASSETS.................................................... 1,783,507 44,282,133
NET ASSETS:
Beginning of year............................................................. 396,503,392 352,221,259
------------- -------------
End of year (includes undistributed net investment income of $6,712
at December 31, 1999 and December 31, 1998)................................. $ 398,286,899 $ 396,503,392
============= =============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 14,659,145 8,671,169
Investor Shares.................................................... 162,350 423,701
Shares issued on reinvestment of dividends:
Institutional Shares................... 304,231 537,168
Investor Shares........................ 24,627 21,682
Shares repurchased:
Institutional Shares......................................... (11,947,117) (5,746,886)
Investor Shares.............................................. (94,021) (251,187)
------------- -------------
Net increase................................................................ 3,109,215 3,655,647
Shares outstanding, beginning of year......................................... 37,376,530 33,720,883
------------- -------------
Shares outstanding, end of year............................................... 40,485,745 37,376,530
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
--------------------------------------------------
YEAR YEAR FOR THE PERIOD
ENDED ENDED APRIL 1, 1997*
DECEMBER 31, DECEMBER 31, THROUGH
1999 1998 DECEMBER 31, 1997
------------ ------------ -----------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.61 $ 10.45 $ 10.00
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.60 0.61 0.47
Net realized and unrealized gain (loss)
on investments........................ (0.76) 0.26 0.45
-------- -------- --------
Total from investment operations...... (0.16) 0.87 0.92
-------- -------- --------
DIVIDENDS AND DISTRIBUTION
Dividends from net investment
income................................ (0.59) (0.61) (0.47)
Distribution from capital gains......... (0.02) (0.10) --
-------- -------- --------
Total dividends and distribution...... (0.61) (0.71) (0.47)
-------- -------- --------
Net asset value at end of period........ $ 9.84 $ 10.61 $ 10.45
======== ======== ========
TOTAL RETURN:........................... (1.47)% 8.56% 9.34%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $393,680 $392,522 $350,330
Ratio to average net assets of:
Expenses, net of waiver from
The Bank of New York................ 0.78% 0.81% 0.80%***
Expenses, prior to waiver from The
Bank of New York.................... 0.78% 0.81% 0.80%
Net investment income................. 5.89% 5.79% 6.14%***
Portfolio turnover rate................. 57% 53% 81%
<CAPTION>
INVESTOR SHARES
--------------------------------------------------
YEAR YEAR FOR THE PERIOD
ENDED ENDED MAY 1, 1997*
DECEMBER 31, DECEMBER 31, THROUGH
1999 1998 DECEMBER 31, 1997
------------ ------------ -----------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $10.61 $10.45 $10.08
------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.57 0.58 0.40
Net realized and unrealized gain (loss)
on investments........................ (0.76) 0.26 0.37
------ ------ ------
Total from investment operations...... (0.19) 0.84 0.77
------ ------ ------
DIVIDENDS AND DISTRIBUTION
Dividends from net investment
income................................ (0.56) (0.58) (0.40)
Distribution from capital gains......... (0.02) (0.10) --
------ ------ ------
Total dividends and distribution...... (0.58) (0.68) (0.40)
------ ------ ------
Net asset value at end of period........ $ 9.84 $10.61 $10.45
====== ====== ======
TOTAL RETURN:........................... (1.73)% 8.22% 7.76%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $4,607 $3,981 $1,891
Ratio to average net assets of:
Expenses, net of waiver from
The Bank of New York................ 1.05% 1.13% 1.06%***
Expenses, prior to waiver from The
Bank of New York.................... 1.09% 1.13% 1.06%
Net investment income................. 5.62% 5.51% 5.74%***
Portfolio turnover rate................. 57% 53% 81%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
- ---------- --------- -------- -------------------------- -----------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.0%
EDUCATION--6.8%
$ 500,000 New York State Dormitory Authority,
Fordham University, MBIA Insured+....... Aaa/AAA 4.400% 7/01/06 $ 477,540
1,700,000 New York State Dormitory Authority, New
York University, MBIA Insured+.......... Aaa/AAA 5.500 7/01/04 1,748,348
500,000 New York State Dormitory Authority,
Rochester Institute of Technology, AMBAC
Insured+................................ Aaa/AAA 5.000 7/01/13 468,245
-----------
2,694,133
-----------
GENERAL OBLIGATIONS--15.6%
500,000 Monroe County, New York................. Aa2/AA 4.050 3/01/07 460,880
500,000 Monroe County, New York, MBIA
Insured+................................ Aaa/AAA 4.800 6/01/02 502,845
60,000 Monroe County, New York, Unrefunded
Balance................................. Aa2/AA 7.000 6/01/03 61,277
500,000 New York State Thruway Authority Service
Contract Highway & Bridge Trust Fund,
FGIC Insured +.......................... Aaa/AAA 5.000 4/01/10 488,135
500,000 New York State.......................... A2/A+ 4.375 7/15/05 482,920
500,000 New York State.......................... A2/A+ 5.000 6/15/11 480,175
1,000,000 New York State.......................... A2/A+ 5.125 6/15/04 1,011,360
750,000 Orange County, New York................. Aa2/NR 5.000 9/01/13 705,315
750,000 Rockland County, New York............... Aa3/AA 4.400 5/01/13 647,587
990,000 Suffolk County, New York, FGIC
Insured+................................ Aaa/AAA 4.250 4/15/10 880,546
500,000 Westchester County, New York............ Aaa/AAA 4.200 11/15/10 445,610
-----------
6,166,650
-----------
HEALTHCARE--6.0%
500,000 New York State Dormitory Authority,
Mental Health Services.................. NR/A- 5.000 8/15/10 474,045
370,000 New York State Dormitory Authority,
Nursing Home Our Lady of Consolation,
FHA Insured+............................ NR/AA 5.200 8/01/05 373,126
1,000,000 New York State Dormitory Authority,
University of Rochester--Strong Memorial
Hospital................................ A1/A+ 5.000 7/01/02 1,007,000
500,000 New York State Medical Care
Facilities-Downstate Medical Center, FHA
Insured+................................ NR/AAA 5.700 2/15/04 514,080
-----------
2,368,251
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<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...... Aa2/NR 5.850% 4/01/06 $ 503,115
500,000 New York State Mortgage
Revenue--Homeowner Mtg Series 39........ Aa2/NR 5.300 4/01/04 505,945
-----------
1,009,060
-----------
INDUSTRIAL DEVELOPMENT BONDS--4.3%
700,000 Hempstead Town--New York Industrial
Development Agency, MBIA Insured+....... Aaa/AAA 4.875 12/01/06 689,766
1,000,000 Hempstead Town--New York Industrial
Development Agency, MBIA Insured+....... Aaa/AAA 5.000 12/01/07 990,430
-----------
1,680,196
-----------
OTHER--0.4%
165,000 New York City, Trust for Cultural
Resources, MOMA, AMBAC Insured+......... Aaa/AAA 5.000 1/01/02 166,279
-----------
PREFUNDED/ESCROW/US GUARANTEED--4.9%
75,000 New York City, Trust for Cultural
Resources, MOMA, AMBAC Insured+......... Aaa/AAA 5.000 1/01/02 75,638
350,000 New York City, Trust for Cultural
Resources, MOMA, AMBAC Insured (Pre-re:
1/1/02 @102)+........................... Aaa/AAA 6.300 1/01/03 367,843
750,000 New York Housing Finance Agency, ETM
State University Construction........... Aaa/AAA 6.500 7/15/02 789,353
500,000 New York State Municipal Bond Bank
Agency (City of Rochester).............. NR/AAA 6.400 3/15/01 511,925
207,000 Puerto Rico Aqueduct & Sewer Authority,
ETM..................................... Aaa/AAA 4.500 7/01/02 206,878
-----------
1,951,637
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
70
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<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--19.9%
$1,000,000 MTA Dedicated Tax Fund, MBIA Insured+... Aaa/AAA 6.000% 4/01/05 $ 1,049,820
1,000,000 Municipal Assistance Corp. for New York
City.................................... Aa2/AA 4.800 7/01/03 1,002,870
2,000,000 Municipal Assistance Corp. for New York
City.................................... Aa2/AA 6.000 7/01/05 2,103,960
200,000 New York State Local Government
Assistance Corp......................... A3/AA- 4.250 4/01/02 198,214
500,000 New York State Local Government
Assistance Corp......................... A3/AA- 4.800 4/01/05 496,535
655,000 New York State Local Government
Assistance Corp......................... A3/AA- 5.000 4/01/02 659,520
340,000 New York State Local Government
Assistance Corp......................... A3/AA- 6.750 4/01/02 354,759
500,000 New York, New York City Transitional
Finance Authority Revenue............... Aaa/AAA 4.000 11/15/05 469,220
300,000 New York, New York City Transitional
Finance Authority Revenue............... Aa3/AA 5.000 11/15/10 291,435
1,225,000 New York, New York City Transitional
Finance Authority Revenue............... Aa3/AA 5.000 8/15/05 1,229,692
-----------
7,856,025
-----------
STATE APPROPRIATION--17.9%
1,000,000 Metropolitan Transportation Authority
Service Contract Revenue................ Baa1/A- 5.750 7/01/07 1,024,450
300,000 New York CTFS Partnership............... Baa1/A- 4.125 9/01/04 286,173
250,000 New York State Dormitory Authority,
Albany County........................... Baa1/A- 5.500 4/01/08 250,880
1,800,000 New York State Dormitory Authority,
Lease Revenue Court Facilities,
Westchester County, AMBAC Insured+...... Aa1/AA 5.125 8/01/12 1,734,444
300,000 New York State Dormitory Authority,
State University........................ A3/A 5.200 5/15/03 302,562
505,000 New York State Medical Care
Facilities-Mental Health Services....... A3/A- 4.700 8/15/01 504,571
480,000 New York State Medical Care
Facilities-Mental Health Services....... A3/A 6.100 8/15/02 493,646
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
- ---------- --------- -------- -------------------------- -----------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 750,000 New York State Thruway Authority Service
Contract, Highway & Bridge Trust Fund... Baa1/A- 5.625% 4/01/07 $ 762,420
250,000 New York State Urban Development
Corp.................................... Baa1/A- 4.200 1/01/04 240,325
500,000 New York State Urban Development
Corp.................................... Baa1/A- 5.000 1/01/12 463,310
1,000,000 New York State Urban Development
Corp.................................... Baa1/A- 5.900 1/01/07 1,023,410
-----------
7,086,191
-----------
TRANSPORTATION--10.1%
500,000 Port Authority New York & New Jersey.... A1/AA- 4.750 10/01/08 482,770
500,000 Port Authority New York & New Jersey.... A1/AA- 5.100 8/01/01 504,290
1,000,000 Port Authority New York & New Jersey.... A1/AA- 5.300 8/01/03 1,018,210
500,000 Port Authority New York & New Jersey.... A1/AA- 6.100 10/15/02 518,530
400,000 Triborough Bridge & Tunnel Authority
General Purpose......................... Aa3/A+ 4.600 1/01/05 393,520
1,000,000 Triborough Bridge & Tunnel Authority
General Purpose......................... Aa3/A+ 6.000 1/01/12 1,052,490
-----------
3,969,810
-----------
UTILITIES--8.5%
500,000 Long Island Power Authority, New York
Electric System Revenue, MBIA
Insured+................................ Aaa/AAA 4.600 4/01/12 446,565
1,000,000 Long Island Power Authority, New York
Electric System Revenue, AMBAC
Insured+................................ Aaa/AAA 5.500 12/01/10 1,018,860
300,000 New York State Environmental Facilities
Corp., PCR State Water.................. Aaa/AAA 6.000 5/15/02 309,624
100,000 New York State Environmental Facilities
Corp., PCR State Water.................. Aaa/AAA 6.300 9/15/00 101,554
1,000,000 New York State Power Authority Revenue &
General Purpose......................... Aa3/AA- 4.250 2/15/04 974,320
500,000 Suffolk County, New York Water
Authority, Waterworks Revenue, MBIA
Insured+................................ Aaa/AAA 5.100 6/01/07 501,875
-----------
3,352,798
-----------
TOTAL MUNICIPAL BONDS
(Cost $38,786,776)...................... 38,301,030
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
72
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL /S&P INTEREST
AMOUNT RATINGS RATE VALUE
- ---------- --------- ---------- -----------
<C> <S> <C> <C> <C>
TAX-EXEMPT MONEY MARKET FUND--1.6%
$ 611,844 Dreyfus New York Municipal Cash
Management (Cost $611,844).............. NR/NR 3.950%(a) $ 611,844
TOTAL INVESTMENTS
(Cost $39,398,620)(b)--98.6%............ 38,912,874
Other assets less liabilities--1.4%..... 565,033
-----------
NET ASSETS--100%........................ $39,477,907
===========
</TABLE>
* RATINGS ARE UNAUDITED.
NR NOT RATED BY MOODY'S OR STANDARD & POOR'S (S&P).
+ INSURED OR GUARANTEED BY THE INDICATED MUNICIPAL BOND INSURANCE
CORPORATION.
(a) REPRESENTS ANNUALIZED YIELD AT DECEMBER 31, 1999.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT DECEMBER 31, 1999, NET UNREALIZED DEPRECIATION WAS $485,746
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $191,575 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $677,321.
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
ETM ESCROWED TO MATURITY.
FGIC FINANCIAL GUARANTY INSURANCE COMPANY
FHA FEDERAL HOUSING AUTHORITY
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
SEE NOTES TO FINANCIAL STATEMENTS.
73
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at value
(Cost $39,398,620).......................................................... $ 38,912,874
Receivables:
Interest.................................................................... 667,794
Due from Advisor............................................................ 3,583
Other assets.................................................................. 203
--------------
TOTAL ASSETS................................................................ 39,584,454
--------------
LIABILITIES:
Payables:
Capital stock repurchased................................................... 49,972
Dividends................................................................... 44,218
Accrued expenses and other liabilities........................................ 12,357
--------------
TOTAL LIABILITIES........................................................... 106,547
--------------
NET ASSETS:..................................................................... $ 39,477,907
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 3,909
Capital surplus............................................................... 40,009,509
Accumulated net realized loss on investments.................................. (49,765)
Net unrealized depreciation on investments.................................... (485,746)
--------------
$ 39,477,907
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 31,445,596
==============
Shares outstanding............................................................ 3,113,379
==============
Net asset value, offering price and repurchase price per share................ $ 10.10
==============
INVESTOR SHARES:
Net assets.................................................................... $ 8,032,311
==============
Shares outstanding............................................................ 795,120
==============
Net asset value, offering price and repurchase price per share................ $ 10.10
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 2,015,825
--------------
EXPENSES:
Advisory...................................................................... 212,671
Administration................................................................ 85,068
12b-1 fee--Investor Shares.................................................... 26,333
Accounting services........................................................... 60,880
Transfer agent................................................................ 35,829
Custodian..................................................................... 16,669
Directors..................................................................... 15,782
Reports to shareholders....................................................... 7,119
Cash management............................................................... 4,179
Audit......................................................................... 3,997
Registration and filings...................................................... 3,883
Legal......................................................................... 523
Other......................................................................... 5,858
--------------
TOTAL EXPENSES.............................................................. 478,791
Fees waived by The Bank of New York (Note 3).................................. (103,730)
Earnings credit adjustment (Note 3)........................................... (315)
NET EXPENSES................................................................ 374,746
--------------
NET INVESTMENT INCOME....................................................... 1,641,079
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments.............................................. (49,779)
Decrease in unrealized appreciation on investments during the year............ (2,215,741)
--------------
Net realized and unrealized loss on investments............................... (2,265,520)
Net decrease in net assets resulting from operations.......................... $ (624,441)
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
74
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
------------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 1,641,079 $ 1,619,015
Net realized gain (loss) on investments....................................... (49,779) 256,154
Increase (decrease) in unrealized appreciation on investments during the
year........................................................................ (2,215,741) 325,257
------------ -----------
Net increase (decrease) in net assets resulting from operations............. (624,441) 2,200,426
------------ -----------
DIVIDENDS AND DISTRIBUTION TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (1,256,942) (1,239,196)
Investor Shares........................... (384,137) (379,819)
Distribution from capital gains:
Institutional Shares.............................. (4,399) (29,529)
Investor Shares................................... (1,125) (9,845)
------------ -----------
(1,646,603) (1,658,389)
------------ -----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 14,403,180 8,283,928
Investor Shares.................................. 5,775,900 4,382,746
Proceeds from shares issued on reinvestment
of dividends and distributions: Institutional Shares........................ 283,918 209,663
Investor Shares............................. 313,288 299,692
Cost of capital stock repurchased:
Institutional Shares............................ (13,049,833) (8,303,000)
Investor Shares................................. (9,076,460) (3,599,478)
------------ -----------
Net increase (decrease) in net assets resulting from capital stock
transactions.............................................................. (1,350,007) 1,273,551
------------ -----------
INCREASE (DECREASE) IN NET ASSETS......................................... (3,621,051) 1,815,588
NET ASSETS:
Beginning of year............................................................. 43,098,958 41,283,370
------------ -----------
End of year................................................................... $ 39,477,907 $43,098,958
============ ===========
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 1,373,783 786,746
Investor Shares.................................................... 543,117 414,391
Shares issued on reinvestment of dividends:
Institutional Shares................... 27,332 19,810
Investor Shares........................ 30,026 28,363
Shares repurchased:
Institutional Shares......................................... (1,246,311) (786,244)
Investor Shares.............................................. (865,068) (341,124)
------------ -----------
Net increase (decrease)..................................................... (137,121) 121,942
Shares outstanding, beginning of year......................................... 4,045,620 3,923,678
------------ -----------
Shares outstanding, end of year............................................... 3,908,499 4,045,620
============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
75
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
------------------------------------------------
YEAR YEAR FOR THE PERIOD
ENDED ENDED APRIL 1, 1997*
DECEMBER 31, DECEMBER 31, THROUGH
1999 1998 DECEMBER 31, 1997
--------------- ------------ -----------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.65 $ 10.52 $ 10.16
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.41 0.41 0.31
Net realized and unrealized gain (loss)
on investments........................ (0.55) 0.14 0.36
------- ------- -------
Total from investment operations...... (0.14) 0.55 0.67
------- ------- -------
DIVIDENDS AND DISTRIBUTION
Dividends from net investment income.... (0.41) (0.41) (0.31)
Distribution from capital gains......... -- (0.01) --
------- ------- -------
Total dividends and distribution...... (0.41) (0.42) (0.31)
------- ------- -------
Net asset value at end of period........ $ 10.10 $ 10.65 $ 10.52
======= ======= =======
TOTAL RETURN:........................... (1.35)% 5.30% 6.69%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $31,446 $31,519 $30,915
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.82% 0.90% 0.90%***
Expenses, prior to waiver from The
Bank of New York.................... 1.07% 1.07% 1.15%***
Net investment income, net of waiver
from The Bank of New York........... 3.93% 3.85% 3.98%***
Portfolio turnover rate................. 32% 24% 21%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
76
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
--------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------
1999 1998 1997 1996 1995
------ ----------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of year.... $10.65 $ 10.52 $ 10.29 $ 10.34 $ 9.59
------ ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.38 0.38 0.39 0.40 0.39
Net realized and unrealized gain (loss)
on investments........................ (0.55) 0.14 0.23 (0.05) 0.75
------ ------- ------- ------- -------
Total from investment operations...... (0.17) 0.52 0.62 0.35 1.14
------ ------- ------- ------- -------
DIVIDENDS AND DISTRIBUTION
Dividends from net investment income.... (0.38) (0.38) (0.39) (0.40) (0.39)
Distribution from capital gains......... -- (0.01) -- -- --
------ ------- ------- ------- -------
Total dividends and distribution...... (0.38) (0.39) (0.39) (0.40) (0.39)
------ ------- ------- ------- -------
Net asset value at end of year.......... $10.10 $ 10.65 $ 10.52 $ 10.29 $ 10.34
====== ======= ======= ======= =======
TOTAL RETURN:+.......................... (1.60)% 5.04% 6.19% 3.47% 12.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year
(000's omitted)....................... $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......................... 1.07% 1.15% 1.02% 0.90% 0.90%
Expenses, prior to waiver from The
Bank of New York.................... 1.30% 1.32% 1.32% 1.18% 1.20%
Net investment income, net of waiver
from The Bank of New York........... 3.65% 3.61% 3.88% 3.91% 3.89%
Portfolio turnover rate................. 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.
SEE NOTES TO FINANCIAL STATEMENTS.
77
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.7%
EDUCATION--13.8%
$2,000,000 California Education Facilities
Authority Revenue (Claremont McKenna
College)................................ Aa1/NR 4.500% 11/01/13 $ 1,798,920
1,190,000 California Education Facilities
Authority Revenue, Callable 4/01/09
@101.................................... A3/NR 4.700 4/01/12 1,078,568
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 2/15/10 982,240
2,000,000 District of Columbia Revenue (University
of George Washington), MBIA Insured..... Aaa/AAA 5.500 9/15/07 2,047,220
1,000,000 Illinois Educational Facility Authority
Revenue (University of Chicago),
Series A................................ Aa1/AA 5.000 7/01/08 985,050
1,000,000 Illinois Educational Facility Authority
Revenue(Northwestern University)........ Aa1/AA+ 5.000 11/01/2032 972,690
5,000,000 Illinois Educational Facility Authority
Revenue, Mandatory Put 11/02/09 @100,
Floating Rate Notes, payable monthly,
interest rate resets weekly, next
interest rate reset date 1/01/00........ Aa1/AA 4.400 7/01/25 4,896,100
1,500,000 Indiana University Revenue Student Fee,
Series M, Callable 8/01/09 @101......... Aa2/AA 5.750 8/01/10 1,545,975
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 1,173,925
2,450,000 New York State Dormitory Authority
Revenue................................. Baa1/A- 5.000 7/01/08 2,370,938
1,315,000 New York State Dormitory Authority
Revenue (Culinary Institute of America),
MBIA Insured+........................... Aaa/NR 4.400 7/01/11 1,193,967
1,000,000 New York State Dormitory Authority
Revenue (Rochester Instutional of
Technology) Callable 7/01/09 @101, AMBAC
Insured+................................ Aaa/AAA 4.625 7/01/10 926,010
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
78
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 20,000 New York State Dormitory Authority
Revenue, Unrefunded Balance, University
of Rochester; Callable 1/18/00 @101..... A1/A+ 6.200% 7/01/02 $ 20,222
2,020,000 Private Colleges & Universities Auth.
(Emory University), Series A............ Aa1/AA 5.500 11/01/06 2,081,590
1,000,000 Swarthmore Borough Authority
Pennsylvania Swarthmore College......... Aaa/AA+ 5.000 9/15/07 999,040
1,000,000 Swarthmore Borough Authority
Pennsylvania Swarthmore College......... Aaa/AA+ 5.000 9/15/08 993,380
1,000,000 Swarthmore Borough Authority
Pennsylvania Swarthmore College......... Aaa/AA+ 5.250 9/15/09 1,006,950
2,185,000 Texas A&M University Revenue, Callable
5/15/07 @100............................ Aa2/AA+ 5.000 05/15/08 2,169,093
1,315,000 Texas A&M University Revenue, Callable
5/15/09 @100............................ Aa2/AA+ 5.200 5/15/12 1,280,415
1,000,000 Texas State Public Finance Authority
Building Revenue (State Technical
College), MBIA Insured+................. Aaa/AAA 6.100 8/01/04 1,038,820
5,255,000 Texas State Refunding Water Financial
Assistance, Series C, Callable 8/01/08
@100.................................... Aa1/AA 5.000 8/01/09 5,189,470
------------
35,686,983
------------
GENERAL OBLIGATIONS--34.0%
1,000,000 Aldine Texas Independent School
District, Callable, 2/15/07 @100........ Aaa/AAA 5.375 2/15/09 1,010,780
1,000,000 Beaufort County, N.C. FSA Insured+...... Aaa/AAA 4.600 2/01/07 965,930
2,700,000 Cedar Rapids, Iowa...................... Aaa/NR 5.000 6/01/06 2,714,904
1,100,000 Chicago Illinios Sales Tax Revenue, FGIC
Insured+................................ Aaa/AAA 5.000 1/01/08 1,087,878
3,000,000 Chicago Illinois, FSA Insured+.......... Aaa/AAA 5.500 1/01/12 3,005,220
3,000,000 Connecticut State, Series A............. Aa3/AA 5.000 5/15/04 3,036,810
2,500,000 Delaware State, Series A................ Aa1/AA+ 5.125 4/01/05 2,537,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<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 $ 2,583,274
2,835,000 El Paso Texas, Callable 8/15/08 @100,
FGIC Insured+........................... Aaa/AAA 4.500 8/15/11 2,530,776
5,000,000 Georgia State, Series C................. Aaa/AAA 5.250 7/01/08 5,085,700
2,000,000 Illinois State.......................... Aa2/AA 5.000 6/01/06 1,996,880
2,000,000 Illinois State.......................... Aa2/AA 5.000 6/01/07 1,987,940
2,185,000 Maryland State & Local Facilities
Loan-2nd................................ Aaa/AAA 5.250 6/15/05 2,237,134
2,000,000 Maryland State & Local Facilities
Loan-3rd, callable 10/15/06 @100........ Aaa/AAA 5.000 10/15/07 2,010,600
1,485,000 Massachusetts State-Construction Loan,
Series A................................ Aa3/AA- 5.100 11/01/02 1,504,424
2,000,000 Massachusetts State-Construction Loan,
Series D, FGIC Insured+................. Aaa/AAA 5.125 11/01/03 2,031,680
1,300,000 Milwaukee Wisconsin Corp., Series O..... Aa1/AA+ 5.000 6/15/08 1,288,573
2,000,000 Milwaukee Wisconsin Metropolitan Sewer
District, Series A...................... Aa1/AA+ 6.250 10/01/04 2,119,960
2,070,000 Minnesota State, Callable 11/01/06
@100.................................... Aaa/AAA 5.000 11/01/08 2,068,841
1,290,000 Montana State........................... Aa3/AA- 5.000 8/01/08 1,289,768
3,215,000 Nevada State Municipal Bond Bank Project
#52, Series A........................... Aa2/AA 6.375 5/15/06 3,447,670
2,760,000 Nevada State Municipal Bond Bank Project
#66 & 67, Series A, Callable 5/15/08.... Aa2/AA 5.250 5/15/10 2,741,536
4,470,000 Nevada State, Series A.................. Aa/AA 4.375 8/01/03 4,407,241
480,00 New Jersey State Turnpike Authority
Revenue................................. NR/AAA 10.375 1/01/03 529,320
2,000,000 New Jersey State, Series E.............. Aa1/AA+ 5.000 7/15/04 2,021,780
1,000,000 New York State, Series F................ A2/A+ 5.000 9/15/06 999,140
1,000,000 Ohio State Infrastructure Improvement,
Series A, Callable 8/01/08 @101......... Aa1/AA+ 5.250 8/01/09 1,010,010
2,970,000 Pennsylvania State - 1st Series......... Aa3/AA 5.000 5/01/03 2,997,651
3,000,000 Pennsylvania State, MBIA Insured+....... Aaa/AAA 5.000 6/01/08 2,977,920
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
80
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$2,105,000 Port of Seattle Washington Revenue,
Series A, FGIC Insured+................. Aaa/AAA 6.000% 10/01/07 $ 2,222,775
2,000,000 Rhode Island, Callable 8/01/07@101, MBIA
Insured+................................ Aaa/AA3 5.000 8/01/09 1,970,620
2,000,000 Round Rock Texas Independent School
District, Callable 8/01/09 @100......... Aaa/AAA 4.400 8/01/11 1,763,620
1,000,000 Santa Monica-Malibu USD, FGIC
Insured+................................ Aaa/AAA 4.450 8/01/10 936,400
1,890,000 Tennessee State, Series A............... Aaa/AAA 4.250 5/01/09 1,735,681
1,345,000 Tennessee State, Series B............... Aaa/AAA 4.500 5/01/07 1,296,298
500,000 Tulsa Oklahoma.......................... Aa2/AA 5.150 6/01/03 507,685
3,000,000 Virginia State Public School Authority,
Series A, Callable 8/01/09 @101......... Aa1/AA+ 4.500 8/01/11 2,695,320
1,000,000 Washington State, Series A.............. Aa1/AA+ 6.700 2/01/05 1,079,940
4,330,000 Washington State, Series R-92D (Motor
Vehicle Fuel Tax)....................... Aa1/AA+ 6.250 9/01/07 4,652,845
1,500,000 Washington State, Series R-93B.......... Aa1/AA+ 5.375 10/01/08 1,526,055
3,000,000 Wisconsin State, Series B............... Aa2/AA 5.250 5/01/07 3,038,550
------------
86,715,854
------------
HEALTHCARE--5.2%
5,625,000 Indiana Health Facility Financing
Authority Hospital Revenue-(Charity
Obligation Group), Series D, Floating
Rate Notes, mandatory put 11/01/07...... Aa2/NR 5.000 11/01/26 5,588,662
2,000,000 Jacksonville Florida Health Facilities
Authority Hospital Revenue-(Charity
Obligation Group), Series C............. Aa2/AA 4.875 8/15/07 1,955,480
700,000 New York State Medical Care Facilities
Financial Agency, Series D, FHA
Insured+................................ Aa2/AA+ 5.100 2/15/05 701,106
1,000,000 North Carolina Medical Care Facility
(Duke University Health Systems
Series A) Callable 6/01/08 @101......... Aa3/AA 4.600 6/01/09 925,740
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
81
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<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 $ 1,951,240
2,000,000 Tampa Florida Revenue Health System -
Catholic Health East, MBIA Insured+..... Aaa/AAA 5.500 11/15/06 2,058,960
------------
13,181,188
------------
HOUSING--1.5%
1,000,000 Alaska State Housing Finance Corporation
Mortgage, Series A-1, Callable 12/01/07
@101.50, MBIA Insured+.................. Aaa/AAA 5.000 12/01/08 980,250
500,000 Connecticut State Housing Financial
Authority-Housing Mortgage Finance
Program, Series C-2..................... Aa2/AA 5.300 11/15/03 507,685
2,250,000 Housing New York Corporation Revenue.... A1/AA 6.000 11/01/03 2,320,312
------------
3,808,247
------------
INDUSTRIAL DEVELOPMENT BONDS--0.4%
1,000,000 Georgetown County South Carolina
Pollution Control
Facilities(International Paper Company
Project), Callable 6/15/02 @102......... A3/BBB+ 6.250 6/15/05 1,017,410
------------
OTHER--0.1%
200,000 New York State Dormitory Authority
Revenue Metropolitan Museum of Art,
Series B................................ Aa1/AA+ 4.150 7/01/23 200,000
100,000 New York State Local Government
Assistance Corp., Series A, Floating
Rate Notes, payable monthly, interest
rate resets monthly, next interest rate
reset date 2/1/00....................... Aa2/AA+ 5.450 4/01/22 100,000
------------
300,000
------------
PRE-REFUNDED SECURITIES--4.2%
85,000 Austin Texas Utility System Revenue,
Series B, Unrefunded balance Callable
5/15/00 @101.5.......................... A2/A 7.250 11/15/03 92,148
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
82
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 895,000 Illinois State Toll Highway Authority,
Callable 1/18/00 @100................... Aaa/AAA 6.750% 1/01/10 $ 946,301
2,840,000 King County Washington, Series A, ETM... Aa1/AA+ 5.000 1/01/04 2,863,996
555,000 Manatee County Florida Water Revenue,
Callable 1/18/00 @101................... Aaa/AAA 4.200 3/01/05 546,897
155,000 Monroe County New York, Callable, AMBAC
Insured, 6/01/04 @102+.................. Aaa/AAA 6.000 6/01/11 160,743
845,000 New Jersey State Highway
Authority-Garden State Parkway General
Revenue................................. NR/AAA 6.500 1/01/11 898,708
2,275,000 New Jersey State Turnpike Authority
Revenue................................. Aaa/NR 5.700 5/01/13 2,329,395
105,000 New Jersey State Turnpike Authority
Revenue................................. Aaa/AAA 5.875 1/01/08 107,662
1,200,000 New Jersey State Turnpike Authority
Revenue, Series C, ETM, MBIA Insured+... Aaa/AAA 6.500 1/01/08 1,309,236
460,888 New York State Dormitory Authority
Revenue, Series B....................... Aa1/AA+ 7.000 10/25/08 514,636
870,000 Sacramento California Municipal Utility
District Revenue........................ Aaa/AAA 5.500 2/01/11 883,207
------------
10,652,929
------------
SPECIAL TAX--7.4%
2,585,000 Chicago Illinois Sales Tax Revenue, FGIC
Insured+................................ Aaa/AAA 6.000 1/01/07 2,720,532
510,000 Clark County Nevada-Las Vegas Convention
and Visitors Authority, MBIA Insured+... Aaa/AAA 5.400 7/01/03 521,235
1,000,000 Connecticut State Special Obligation
Revenue, Series B....................... A1/AA- 6.100 9/01/08 1,068,760
1,100,000 Indiana Bond Bank Revenue, Series A..... NR/AAA 5.750 2/01/06 1,142,064
5,000,000 Indianapolis Industrial Local Public
Improvement Bank, Series A.............. Aaa/AAA 5.500 2/01/08 5,136,900
2,000,000 Municipal Assistance Corp. for New York
City.................................... Aa2/AA 6.000 7/01/05 2,103,960
1,805,000 New York State Local Government
Assistance Corp., Series A.............. A3/AA- 6.000 4/01/06 1,896,261
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
83
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<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 New York State Local Government
Assistance Corp., Series A, Callable
4/01/07 @101, AMBAC Insured+............ Aaa/AAA 5.000% 4/01/09 $ 1,971,920
1,980,000 New York State Local Government
Assistance Corp., Series C.............. A3/A 6.000 4/01/12 2,067,199
------------
18,628,831
------------
STATE APPROPRIATION --11.4%
1,980,000 Kentucky State Turnpike Authority
Economic Development Road Revenue
(Revitalization Projects) AMBAC
Insured+................................ Aaa/AAA 5.300 7/01/04 2,021,243
2,000,000 Kentucky State Turnpike Authority
Economic Development Road Revenue,
(Revitalization Projects) AMBAC
Insured+................................ Aaa/AAA 5.500 7/01/08 2,056,020
1,000,000 Massachusetts Bay Transportation
Authority, Series A..................... Aa3/AA- 5.400 3/01/08 1,019,760
2,050,000 Metropolitan Transportation Authority
Facility Revenue, Series 8.............. Baa1/BBB+ 5.500 7/01/06 2,074,538
2,000,000 New York State CTFS Partnership......... Baa1/A- 5.000 3/01/03 2,002,940
3,000,000 New York State Dormitory Authority State
University Educational Facilities....... A3/A 6.000 5/15/07 3,132,690
1,980,000 New York State Dormitory Authority State
University Educational Facilities....... Baa1/BBB+ 5.250 5/15/10 1,958,062
1,500,000 New York State Urban Development Corp.
Revenue................................. Baa1/A- 5.450 1/01/07 1,507,800
2,000,000 New York State Urban Development Corp.,
Revenue................................. Baa1/A- 5.000 1/01/07 1,957,300
9,705,000 New York State Urban Development Corp.,
Revenue Callable 1/01/08 @102........... Baa1/A- 5.000 1/01/14 8,692,671
2,500,000 New York State Urban Development Corp.,
Revenue Callable 1/01/08 @102........... Baa1/A- 5.000 1/01/13 2,280,750
------------
28,703,774
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
TRANSPORTATION--8.3%
$1,000,000 Central Puget Sound, Washington Transit
Authority, FGIC Insured(a).............. Aaa/AAA 5.250% 2/01/09 $ 999,880
1,150,000 Delaware Transportation Authority System
Revenue, Callable 7/01/01 @102.......... A1/AA 6.125 7/01/03 1,195,092
1,500,000 Kansas State Department of
Transportation Highway Revenue,
Series A................................ Aa2/AA+ 5.375 3/01/07 1,535,865
60,000 Kentucky State Turnpike Authority Toll
Road Revenue, Series A.................. A1/A+ 8.500 7/01/04 60,197
1,750,000 Mississippi State Highway Revenue,
Series #39.............................. Aa1/AAA 5.250 6/01/08 1,770,335
2,000,000 New Jersey State Highway Authority
Garden State Parkway General Revenue.... A1/AA- 5.150 1/01/07 2,017,540
2,450,000 New Jersey State Transit Transportation
Fund, Series A.......................... Aa2/AA- 5.250 6/15/08 2,475,088
2,500,000 New Jersey State Transportation
Authority, Series A, MBIA Insured+...... Aaa/AAA 6.250 12/15/03 2,637,400
1,000,000 New York State Bridge Authority
Revenue................................. Aa3/AA- 5.000 1/01/07 995,340
5,000,000 New York State Thruway Authority Local
Highway & Bridge, Callable 4/01/07
@102.................................... Baa1/A- 5.100 4/01/08 4,892,000
990,000 Pennsylvania State Turnpike Revenue,
Series O, FGIC Insured+................. Aaa/AAA 5.350 12/01/02 1,009,256
1,130,000 Triborough Bridge & Tunnel Authority,
Series Q................................ Aa3/A+ 6.750 1/01/09 1,246,842
------------
20,834,835
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
UTILITIES--11.7%
$5,000,000 Austin Texas Utility System Revenue
Series A, MBIA Insured, Callable
11/15/06 @100+.......................... Aaa/AAA 5.000% 5/15/07 $ 4,973,250
2,970,000 Charlotte North Carolina Water &
Sewer................................... Aaa/AAA 5.500 5/01/03 3,042,943
735,000 Consumers Public Power District-Nuclear
Facility Revenue, Callable 1/18/00
@100.................................... A1/NR 5.100 1/01/03 735,118
3,150,000 Dade County Florida Water & Sewer System
Revenue, FGIC Insured+.................. Aaa/AAA 6.250 10/01/07 3,399,071
990,000 Georgia Municipal Electrical Authority
Power Revenue, Series Z................. A3/A 5.000 1/01/04 988,228
1,000,000 Grant County Washington Public Utility
District No. 002........................ Aa3/A+ 5.600 1/01/05 1,024,480
1,000,000 Houston Texas Water Conveyance System
Contract, Series B, AMBAC Insured+...... Aaa/AAA 7.000 12/15/04 1,089,080
5,000 Jacksonville Florida Electrical
Authority Revenue, Series Two 1987A-1,
Callable 1/18/00 @ 100.................. Aa2/AA 7.500 10/01/02 5,013
4,000,000 Long Island New York Power Authority
Electric System Revenue, Series A, AMBAC
Insured+................................ Aaa/AAA 5.500 12/01/09 4,079,760
3,500,000 Long Island Power Authority New York
Electric System Revenue, MBIA
Insured+................................ Aaa/AAA 5.000 4/01/08 3,461,325
1,000,000 Long Island Power Authority, New York
Electric System Revenue, AMBAC
Insured+................................ Aaa/AAA 5.500 12/01/10 1,018,860
2,000,000 Nebraska Public Power District Revenue,
Series B, MBIA Insured+................. Aaa/AAA 5.250 1/01/07 2,024,520
1,000,000 New York State Environmental Facilities
Corp. Pollution Control Revenue
Loan-C.................................. Aaa/AAA 5.000 7/15/04 1,010,490
2,000,000 New York State Power Authority Revenue &
General Purpose, Series A............... Aa3/AA- 4.375 2/15/05 1,938,320
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
*MOODY'S
PRINCIPAL S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 705,000 South Carolina State Public Service
Authority Electrical Revenue &
Electrical System Expansion............. Aa2/AAA 4.100% 7/01/06 $ 659,062
------------
29,449,520
------------
TOTAL MUNICIPAL BONDS
(Cost $252,548,854)..................... 248,979,571
TAX-EXEMPT MONEY MARKET FUND--0.7%
1,803,718 Dreyfus Municipal Money Market Fund
(Cost $1,803,718)....................... NR/NR 3.930(b) 1,803,718
------------
TOTAL INVESTMENTS
(Cost $254,352,572)(c)--99.4%........... 250,783,289
Other assets less liabilities--0.6%..... 1,433,967
------------
NET ASSETS--100.0%...................... $252,217,256
============
</TABLE>
* RATING ARE UNAUDITED.
NR NOT RATED BY MOODY'S OR STANDARD & POOR'S (S&P).
+ INSURED OR GUARANTEED BY THE INDICATED MUNICIPAL BOND INSURANCE
CORPORATION.
(a) WHEN-INSURED SECURITY, VALUED AT FAIR VALUE.
(b) REPRESENTS ANNUALIZED YIELD AT DECEMBER 31, 1999.
(c) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR THE FEDERAL INCOME
TAX PURPOSES. AT DECEMBER 31, 1999, NET UNREALIZED APPRECIATION WAS
$3,569,283 BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF
AGGREGATE GROSS UNREALIZED APPRECIATION OF $6,000,367 AND AGGREGATE GROSS
UNREALIZED DEPRECIATION OF $2,431,084.
ETM --ESCROWED TO MATURITY.
MBIA --MUNICIPAL BOND INSURANCE ASSOCIATION
FGIC --FINANCIAL GUARANTY INSURANCE CORPORATION
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
DIVERSIFICATION BY STATE
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF
TOTAL
VALUE NET ASSETS
------------ ----------
<S> <C> <C>
Alaska.................................. $ 980,250 0.4%
California.............................. 4,697,095 1.9
Connecticut............................. 4,613,255 1.8
Delaware................................ 3,732,217 1.5
District of Columbia.................... 3,029,460 1.2
Florida................................. 7,965,421 3.2
Georgia................................. 8,155,518 3.2
Illinois................................ 18,598,591 7.4
Indiana................................. 13,413,602 5.3
Kansas.................................. 1,535,865 0.6
Kentucky................................ 4,137,461 1.6
Maryland................................ 4,247,734 1.7
Massachusetts........................... 4,555,864 1.8
Minnesota............................... 2,068,841 0.8
Mississippi............................. 1,770,335 0.7
Montana................................. 1,289,768 0.5
Nebraska................................ 2,759,638 1.1
Nevada.................................. 11,117,682 4.4
New Jersey.............................. 15,500,054 6.1
New York................................ 59,796,104 23.7
North Carolina.......................... 3,968,683 1.6
Oklahoma................................ 507,685 0.2
Pennsylvania............................ 11,935,436 4.7
Rhode Island............................ 1,970,620 0.8
South Carolina.......................... 2,642,402 1.0
Texas................................... 23,720,726 9.4
Virginia................................ 2,695,320 1.1
Washington.............................. 14,369,970 5.7
Wisconsin............................... 6,447,083 2.6
Tax-exempt money market fund (various
states)............................... 8,560,609 3.4
------------ -------
Total value of investments.............. 250,783,289 99.4
Other assets less liabilities........... 1,433,967 0.6
------------ -------
Net Assets.............................. $252,217,256 100.0%
============ =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at value (Cost $254,352,572)...................................... $ 250,783,289
Receivables:
Interest.................................................................... 3,961,136
Capital stock sold.......................................................... 60,000
Dividends................................................................... 3,750
Deferred organization costs and other assets.................................. 44,582
--------------
TOTAL ASSETS................................................................ 254,852,757
--------------
LIABILITIES:
Payables:
Investments purchased....................................................... 2,039,173
Dividends................................................................... 281,894
Services provided by The Bank of New York and Administrator................. 160,339
Capital stock repurchased................................................... 114,924
Accrued expenses and other liabilities........................................ 39,171
--------------
TOTAL LIABILITIES........................................................... 2,635,501
--------------
NET ASSETS:..................................................................... $ 252,217,256
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 26,427
Capital surplus............................................................... 255,825,702
Undistributed net investment income........................................... 8,244
Accumulated net realized loss on investments.................................. (73,834)
Net unrealized depreciation on investments.................................... (3,569,283)
--------------
NET ASSETS...................................................................... $ 252,217,256
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 251,776,593
==============
Shares outstanding............................................................ 26,380,449
==============
Net asset value, offering price and repurchase price per share................ $ 9.54
==============
INVESTOR SHARES:
Net assets.................................................................... $ 440,663
==============
Shares outstanding............................................................ 46,136
==============
Net asset value, offering price and repurchase price per share................ $ 9.55
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 12,464,413
Dividends..................................................................... 71,114
--------------
TOTAL INCOME................................................................ 12,535,527
--------------
EXPENSES:
Advisory...................................................................... 1,318,587
Administration................................................................ 527,436
12b-1 fee--Investor Shares.................................................... 1,075
Accounting services........................................................... 59,800
Transfer agent................................................................ 56,100
Custodian..................................................................... 33,120
Registration and filings...................................................... 18,472
Organization.................................................................. 16,545
Directors..................................................................... 15,782
Reports to shareholders....................................................... 16,113
Audit......................................................................... 8,091
Insurance..................................................................... 4,224
Legal......................................................................... 10,802
Cash management............................................................... 2,751
Other......................................................................... 11,461
--------------
TOTAL EXPENSES.............................................................. 2,100,359
Fees waived by the Bank of New York (Note 3).................................. (5,034)
Earnings credit adjustment (Note 3)........................................... (256)
--------------
NET EXPENSES................................................................ 2,095,069
--------------
NET INVESTMENT INCOME....................................................... 10,440,458
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments.............................................. 617,858
Decrease in unrealized depreciation on investments during the period.......... (16,412,697)
--------------
Net realized and unrealized loss on investments............................... (15,794,839)
--------------
Net decrease in net assets resulting from operations.......................... $ (5,354,381)
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 10,440,458 $ 10,953,021
Net realized gain on investments.............................................. 617,858 5,488,044
Decrease in unrealized appreciation on investments during the year............ (16,412,697) (2,389,727)
------------ ------------
Net increase (decrease) in net assets resulting from operations............. (5,354,381) 14,051,338
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (10,430,530) (10,942,519)
Investor Shares........................... (9,928) (12,153)
Distributions from capital gains:
Institutional Shares............................. (1,369,621) (5,340,052)
Investor Shares.................................. (2,297) (9,348)
------------ ------------
(11,812,376) (16,304,072)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 64,061,910 33,561,190
Investor Shares.................................. 84,986 627,121
Proceeds from shares issued on reinvestment of dividends:
Institutional Shares...... 1,606,329 5,446,616
Investor Shares........... 16,942 16,709
Cost of capital stock repurchased:
Institutional Shares............................ (66,816,115) (35,781,571)
Investor Shares................................. (108,514) (357,246)
------------ ------------
Net increase (decrease) in net assets resulting from capital stock
transactions............................................................... (1,154,462) 3,512,819
------------ ------------
INCREASE (DECREASE) IN NET ASSETS......................................... (18,321,219) 1,260,085
NET ASSETS:
Beginning of year............................................................. 270,538,475 269,278,390
------------ ------------
End of year (includes undistributed net investment income of $5,355 at
December 31, 1999 and $5,355 at December 31, 1998).......................... $252,217,256 $270,538,475
============ ============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 6,479,523 3,265,028
Investor Shares.................................................... 8,684 60,849
Shares issued on reinvestment of dividends and distributions:
Institutional Shares.... 166,776 534,826
Investor Shares......... 1,723 1,631
Shares repurchased:
Institutional Shares......................................... (6,776,924) (3,478,108)
Investor Shares.............................................. (10,721) (34,862)
------------ ------------
Net increase (decrease)..................................................... (130,939) 349,364
Shares outstanding, beginning of year......................................... 26,557,524 26,208,160
------------ ------------
Shares outstanding, end of year............................................... 26,426,585 26,557,524
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
--------------------------------------------------
FOR THE
PERIOD
YEAR YEAR APRIL 1, 1997*
ENDED ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1997
------------- ------------- ---------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.19 $ 10.27 $ 10.00
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.39 0.41 0.33
Net realized and unrealized gain (loss)
on investments........................ (0.60) 0.13 0.31
-------- -------- --------
Total from investment operations...... (0.21) 0.54 0.64
-------- -------- --------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment
income................................ (0.39) (0.41) (0.33)
Distributions from capital gains........ (0.05) (0.21) (0.04)
-------- -------- --------
Total dividends and distributions..... (0.44) (0.62) (0.37)
-------- -------- --------
Net asset value at end of period........ $ 9.54 $ 10.19 $ 10.27
======== ======== ========
TOTAL RETURN:........................... (2.06)% 5.37% 6.50%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $251,777 $270,065 $269,085
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.79% 0.83% 0.81%***
Expenses, prior to waiver from The
Bank of New York.................... 0.80% 0.83% 0.81%***
Net investment income, net of waiver
from The Bank of New York........... 3.96% 4.03% 4.36%***
Portfolio turnover rate................. 34% 37% 30%
<CAPTION>
INVESTOR SHARES
--------------------------------------------------
FOR THE
PERIOD
YEAR YEAR MAY 1, 1997*
ENDED ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1997
------------- ------------- ---------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $10.19 $10.28 $ 9.99
------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.23 0.38 0.27
Net realized and unrealized gain (loss)
on investments........................ (0.45) 0.12 0.33
------ ------ ------
Total from investment operations...... (0.22) 0.50 0.60
------ ------ ------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment
income................................ (0.37) (0.38) (0.27)
Distributions from capital gains........ (0.05) (0.21) (0.04)
------ ------ ------
Total dividends and distributions..... (0.42) (0.59) (0.31)
------ ------ ------
Net asset value at end of period........ $ 9.55 $10.19 $10.28
====== ====== ======
TOTAL RETURN:........................... (2.22)% 4.95% 6.08%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $ 441 $ 473 $ 194
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 2.45% 1.13% 1.15%***
Expenses, prior to waiver from The
Bank of New York.................... 2.45% 1.13% 1.15%***
Net investment income, net of waiver
from The Bank of New York........... 2.31% 3.74% 3.98%***
Portfolio turnover rate................. 34% 37% 30%
</TABLE>
* COMMENCEMENT OF OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
COMMERCIAL PAPER--44.6%
ASSET BACKED SECURITIES--CREDIT CARDS--0.9%
$12,997,801 Ford Credit Trust, 5.816%, 6/15/00...... $ 12,997,801
20,000,000 Riverwoods Funding Corp., 5.95%,
2/03/00................................. 19,890,917
--------------
32,888,718
--------------
ASSET BACKED SECURITIES--TRADE & LEASE RECEIVABLES
(PARTIAL SUPPORT)--5.8%
20,000,000 Barton Capital, 5.92%, 2/04/00.......... 19,888,178
15,000,000 Cafco, 6.499%, 2/03/00+................. 15,000,000
20,000,000 Ciesco, 5.97%, 1/26/00.................. 19,917,083
20,000,000 Ciesco, 5.90%, 3/10/00.................. 19,773,833
20,000,000 CRC, 6.482%, 1/18/00+................... 20,000,000
20,000,000 CXC Inc., 6.482%, 1/18/00+.............. 20,000,000
25,003,000 Monta Rosa, 6.13%, 1/25/00.............. 24,900,821
1,781,000 Premier Auto Trust, 5.116%, 3/08/00..... 1,780,923
20,000,000 Sheffield Receivables Corp., 5.97%,
1/24/00................................. 19,923,717
25,000,000 Sigma Finance Co., 5.92%, 1/13/00....... 24,950,667
15,000,000 Windmill Funding II Corp., 5.87%,
1/21/00................................. 14,951,083
--------------
201,086,305
--------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
BANKS--FOREIGN INSTITUTIONS--2.3%
$20,000,000 OKB, 5.90%, 1/25/00..................... $ 19,921,333
20,000,000 OKB, 6.45%, 1/25/00..................... 19,914,000
40,000,000 UBS AG, 5.00%, 1/04/00.................. 39,983,333
--------------
79,818,666
--------------
CHEMICALS--BASIC--1.6%
15,000,000 duPont (E.I) de Nemoures & Co.,
5.66%, 1/28/00.......................... 14,936,325
10,000,000 duPont (E.I) de Nemoures & Co., 4.998%,
4/14/00................................. 9,997,187
10,000,000 duPont (E.l) de Nemoures & Co.,
5.78%, 2/15/00.......................... 9,927,750
20,000,000 duPont (E.l) de Nemoures & Co.,
5.74%, 2/23/00.......................... 19,830,989
--------------
54,692,251
--------------
COMMUNICATIONS & ENTERTAINMENT--0.3%
10,000,000 Gannet Co., 5.95%, 1/27/00.............. 9,957,028
--------------
COMPUTERS--0.9%
30,000,000 International Business Machines,
5.90%, 2/08/00.......................... 29,813,167
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
ELECTRICAL EQUIPMENT--1.3%
$10,000,000 Emerson Electric Co., 5.25%, 1/18/00.... $ 9,975,208
16,760,000 Emerson Electric Co., 5.83%, 1/31/00.... 16,678,574
20,000,000 Emerson Electric Co., 5.30%, 2/04/00.... 19,899,889
--------------
46,553,671
--------------
EXPORT TRADING--1.1%
40,000,000 Private Export Fund Corp., 5.82%,
3/29/00................................. 39,430,933
--------------
FINANCE COMPANIES--3.4%
20,000,000 Ford Motor Express Credit, 5.81%,
1/21/00................................. 19,935,444
20,000,000 GE Capital, 5.57%, 2/03/00.............. 19,897,883
20,000,000 GE Capital, 5.84%, 3/08/00.............. 19,782,622
20,000,000 General Electric Capital Corp., 5.84%,
2/10/00................................. 19,870,222
10,000,000 KFW International Finance, 5.95%,
2/07/00................................. 9,938,847
20,000,000 KFW International Finance, 5.75%,
2/09/00................................. 19,875,417
10,000,000 Pitney Bowes Credit Corp., 5.95%,
9/29/00................................. 10,000,000
--------------
119,300,435
--------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
FINANCIAL SERVICES--2.0%
$30,000,000 Goldman Sachs, Inc., 6.50%, 1/31/00..... $ 29,837,500
20,000,000 Merrill Lynch & Co, 5.90%, 1/31/00...... 19,901,667
20,000,000 Merrill Lynch & Co, 5.89%, 3/15/00...... 19,757,856
--------------
69,497,023
--------------
FINANCIAL SERVICES--DIVERSIFIED--0.6%
22,500,000 Paccar Finance Corp., 5.87%, 1/12/00.... 22,459,644
--------------
FINANCIAL SERVICES--MORTGAGE COMPANIES--0.6%
20,000,000 St. Pauls Co., Inc., 5.90%, 2/11/00..... 19,865,611
--------------
FOOD & BEVERAGES--5.1%
18,000,000 Anheuser Busch Co., 5.85%, 1/13/00...... 17,964,900
22,000,000 Campbell, 5.80%, 2/04/00................ 21,879,489
10,000,000 Campbell, 4.89%, 3/15/00................ 9,899,483
25,000,000 Coca-Cola, 5.80%, 2/29/00............... 24,762,361
20,000,000 Heinz (HJ), 5.33%, 1/21/00.............. 19,940,778
35,000,000 Kellogg Co., 5.77%, 3/28/00............. 34,511,954
50,000,000 Mac Donald Corp., 6.30%, 1/14/00........ 49,886,250
--------------
178,845,215
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
FOOD PROCESSING--0.3%
$10,000,000 Archer-Daniels-Midland Co., 5.40%,
2/16/00................................. $ 9,931,000
--------------
INSURANCE--NON-HEALTH & LIFE--2.6%
20,000,000 Aegon Funding Corp., 5.74%, 3/21/00..... 19,744,889
35,000,000 AIG Funding, Inc., 5.81%, 1/18/00....... 34,903,974
35,000,000 Prudential Funding Corp., 6.12%,
1/21/00................................. 34,881,000
--------------
89,529,863
--------------
MEDICAL CARE & PRODUCTS--1.0%
35,000,000 Glaxo-Wellcome Co., 5.80%, 2/11/00...... 34,768,806
--------------
MEDICAL PRODUCTS & SUPPLIES--1.1%
10,000,000 Johnson & Johnson, 5.58%, 2/28/00....... 9,910,100
30,000,000 Johnson & Johnson, 5.74%, 4/19/00....... 29,478,617
--------------
39,388,717
--------------
NON-BANK HOLDING COMPANIES--0.6%
20,000,000 USAA, 5.85%, 1/24/00.................... 19,925,250
--------------
OIL--1.7%
30,000,000 Chevron, 5.70%, 2/04/00................. 29,838,500
20,000,000 Fina Oil & Chemical, 5.88%, 2/23/00..... 19,826,867
10,000,000 Koch Industries, Inc., 5.89%, 1/19/00... 9,970,550
--------------
59,635,917
--------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
PHARMACEUTICALS--2.7%
$20,000,000 Merck, 5.80%, 2/04/00................... $ 19,890,444
15,000,000 Merck, 5.47%, 2/07/00................... 14,915,671
10,000,000 Pfizer, 5.68%, 2/29/00.................. 9,906,911
15,000,000 Pfizer, 5.63%, 3/15/00.................. 14,826,408
15,000,000 Pfizer, 5.71%, 3/21/00.................. 14,809,667
20,900,000 Warner Lambert, 6.32%, 1/14/00.......... 20,852,301
--------------
95,201,402
--------------
PHARMACEUTICALS, HEALTH CARE, COSMETIC--1.4%
30,000,000 Procter & Gamble Co., 5.88%, 1/31/00.... 29,853,000
20,300,000 Procter & Gamble Co., 5.85%, 2/28/00.... 20,108,672
--------------
49,961,672
--------------
PRINTING AND PUBLISHING--0.3%
10,000,000 Reed Elsevier, Inc., 6.02%, 1/21/00..... 9,966,555
--------------
TECHNOLOGY INDUSTRIES--0.9%
30,000,000 Motorola Corp., 5.95%, 3/14/00.......... 29,638,042
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
UTILITIES--ELECTRIC--3.3%
$20,000,000 Georgia Power Co., 5.90%, 3/10/00....... $ 19,773,833
25,000,000 National Rural Utilities Cooperative
Finance, 5.92%, 3/27/00................. 24,646,444
25,000,000 National Rural Utilities Cooperative
Finance, 5.79%, 2/10/00................. 24,839,167
21,200,000 Tampa Electric Co., 6.07%, 1/12/00...... 21,160,680
25,000,000 Tampa Electric Co., 5.75%, 2/29/00...... 24,764,410
--------------
115,184,534
--------------
UTILITIES--TELECOMMUNICATIONS--2.8%
34,000,000 Bell Atlantic, 6.26%, 2/03/00........... 33,804,897
20,000,000 BellSouth Telecommunications, Inc.,
5.30%, 2/02/00.......................... 19,905,778
20,000,000 BellSouth Telecommunications, Inc.,
5.67%, 2/15/00.......................... 19,858,250
15,000,000 British Telecommunications, Inc., 5.71%,
2/29/00................................. 14,859,629
10,000,000 British Telecommunications, Inc., 5.78%,
3/21/00................................. 9,871,556
--------------
98,300,110
--------------
TOTAL COMMERCIAL PAPER
(Cost $1,555,640,535)................... 1,555,640,535
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
TIME DEPOSITS--19.3%
BANKS--DOMESTIC INSTITUTIONS--11.4%
$40,000,000 Banc One Corp., 4.50%, 1/03/00.......... $ 40,000,000
30,000,000 Chase Manhattan Bank, 4.50%, 1/03/00.... 30,000,000
50,000,000 Harris Trust Bank of Chicago, 5.00%,
1/03/00................................. 50,000,000
70,000,000 Huntington National Bank, 5.00%,
1/03/00................................. 70,000,000
65,911,000 Republic Savings Bank, 4.00%, 1/03/00... 65,911,000
70,000,000 SunTrust Banks, Inc., 4.50%, 1/03/00.... 70,000,000
70,000,000 Wachovia Bank NA,, 4.75%, 1/03/00....... 70,000,000
--------------
395,911,000
--------------
BANKS--FOREIGN INSTITUTIONS--7.9%
70,000,000 CIBC/Oppenheimer, 4.25%, 1/03/00........ 70,000,000
60,000,000 Dresdner Bank AG, 5.00%, 1/03/00........ 60,000,000
7,000,000 National Westminster Bank, 5.03%,
2/08/00................................. 6,992,543
70,000,000 Societe Generale, 4.00%, 1/03/00........ 70,000,000
70,000,000 WEST LB-TD, 4.25%, 1/03/00.............. 70,000,000
--------------
276,992,543
--------------
TOTAL TIME DEPOSITS
(Cost $672,903,543)..................... 672,903,543
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
CERTIFICATES OF DEPOSIT--11.2%
BANK HOLDING COMPANIES--0.6%
$20,000,000 Bank of America Corp., 5.95%, 2/02/00... $ 20,000,000
--------------
BANKING--0.8%
10,000,000 First Union National Bank, 5.56%,
6/02/00................................. 10,002,347
10,000,000 Regions Bank, 5.15%, 2/18/00............ 10,000,000
10,000,000 Regions Bank, 6.09%, 10/10/00........... 9,996,302
--------------
29,998,649
--------------
BANKS--DOMESTIC INSTITUTIONS--5.0%
25,000,000 American Express Centurion Bank,
6.12%, 1/25/00.......................... 25,000,000
20,000,000 Chase Manhattan Bank, 5.03%, 2/11/00.... 19,976,592
20,000,000 Chase Manhattan Bank, 5.67%, 2/22/00.... 19,836,200
10,000,000 Chase Manhattan Bank, 5.365%, 5/22/00... 9,998,692
10,000,000 CIBC/Oppenheimer, 5.10%, 4/12/00........ 9,998,654
20,000,000 Harris Trust Bank of Chicago,
6.25%, 1/10/00.......................... 20,000,000
10,000,000 Michigan National Bank, 5.98%,
9/22/00................................. 9,997,225
10,000,000 Michigan National Bank, 5.13%,
4/10/00................................. 9,999,076
10,000,000 Morgan (J.P.) & Co., Inc., 5.75%,
7/10/00................................. 10,000,000
10,000,000 NationsBank, 4.99%, 1/11/00............. 9,999,974
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
CERTIFICATES OF DEPOSIT (CONTINUED)
$15,000,000 Northern Trust Corp., 6.27%, 1/04/00.... $ 15,000,037
15,000,000 Wilmington Trust Co., 5.05%, 1/14/00.... 15,000,000
--------------
174,806,450
--------------
BANKS--FOREIGN INSTITUTIONS--4.8%
10,000,000 ABN Amro Bank, 5.045%, 2/14/00.......... 9,999,774
10,000,000 Bank of Montreal, 5.12%, 4/10/00........ 9,999,208
10,000,000 Bayerische Landesbank, 5.19%, 2/29/00... 9,999,689
15,000,000 Bayerische Landesbank, 6.64%,
11/09/00+............................... 14,991,021
20,000,000 Bayerische Landesbank, 6.581%,
12/15/00+............................... 19,983,790
20,000,000 Bayerische Verinsbank, 6.383%,
5/15/00+................................ 19,996,351
15,000,000 Commerzbank NY, 4.965%, 2/01/00......... 14,999,816
10,000,000 Rabobank Nederland NV NY, 5.45%,
6/05/00................................. 9,998,359
10,000,000 Rabobank Nederland NV NY, 5.64%,
7/20/00................................. 9,985,090
10,000,000 Toronto Dominion Bank NY, 4.99%,
1/06/00................................. 9,999,974
7,000,000 Toronto Dominion Bank NY, 4.295%,
3/06/00................................. 6,999,461
10,000,000 UBS AG, 6.24%, 12/06/00................. 9,999,016
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
CERTIFICATES OF DEPOSIT (CONTINUED)
$ 5,000,000 United Bank of Switzerland,
5.285%, 3/01/00......................... $ 4,999,960
15,000,000 United Bank Switzerland AG Stamford,
5.08%, 1/13/00.......................... 15,000,381
--------------
166,951,890
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $391,756,989)..................... 391,756,989
--------------
</TABLE>
<TABLE>
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS--8.3%
FEDERAL FARM CREDIT BANK--2.3%
7,350,000 4.76%, 1/18/00.......................... 7,349,299
17,779,000 5.78%, 2/4/00+.......................... 17,681,946
30,000,000 5.75%, 2/17/00+......................... 29,774,792
24,000,000 5.80%, 3/24/00+......................... 23,679,067
--------------
78,485,104
--------------
FEDERAL HOME LOAN BANK--1.4%
10,000,000 4.95%, 2/17/00.......................... 9,999,311
10,000,000 4.95%, 2/24/00.......................... 9,998,225
6,970,000 5.025%, 2/25/00......................... 6,962,762
10,000,000 5.01%, 4/28/00.......................... 9,997,797
10,000,000 5.15%, 5/19/00.......................... 9,996,139
--------------
46,954,234
--------------
FEDERAL HOME LOAN MORTGAGE CORP.--1.1%
25,000,000 5.47%, 2/09/00+......................... 24,851,854
15,000,000 5.53%, 3/01/00.......................... 14,861,750
--------------
39,713,604
--------------
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS
(CONTINUED)
FEDERAL NATIONAL MORTGAGE ASSOC.--3.5%
$10,000,000 5.07%, 1/19/00+......................... $ 9,974,650
21,230,000 5.44%, 1/20/00+......................... 21,169,046
31,921,000 5.54%, 1/28/00.......................... 31,788,368
25,000,000 5.50%, 5/05/00+......................... 24,522,570
10,000,000 5.05%, 5/12/00.......................... 9,997,204
10,000,000 5.90%, 12/01/00......................... 9,984,028
15,000,000 5.00%, 12/04/00......................... 14,831,248
--------------
122,267,114
--------------
TOTAL UNITED STATES GOVERNMENT
AGENCIES & OBLIGATIONS
(Cost $287,420,056)..................... 287,420,056
--------------
</TABLE>
<TABLE>
<C> <S> <C>
FLOATING RATE BANK SECURITIES--4.1%
BANK HOLDING COMPANIES--2.8%
15,000,000 Associates Corp., of North America,
6.43%, payable monthly, interest rate
resets monthly, next rate reset date
1/20/00, final maturity date 4/03/00+... 14,997,758
15,000,000 Banc One Corp 6.52%, payable monthly,
interest rate resets monthly, next rate
reset date 1/10/00, final maturity date
1/01/2001............................... 15,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
FLOATING RATE BANK SECURITIES (CONTINUED)
$10,000,000 Banc One Corp., 6.32%, payable quartely,
interest rate resets quartely, next rate
reset date 1/18/00, final maturity date
1/16/01................................. $ 10,011,142
14,000,000 Citicorp, 6.52%, payable monthly,
interest rate resets monthly, next rate
reset date 1/04/00, final maturity date
8/02/00................................. 13,996,764
10,000,000 Morgan (J.P.) & Co., Inc., 4.85%,
payable monthly, interest rate resets
monthly, next interest rate reset date
1/18/00, final maturity date 5/18/00.... 9,999,348
15,000,000 Morgan (J.P.) & Co., Inc., 4.91%,
payable monthly, interest rate resets
monthly, next rate reset date 1/06/00,
final maturity date 7/06/00............. 14,998,692
20,000,000 US National Bank of Minnesota, 4.88%,
payable monthly, interest rate resets
monthly, next interest rate reset date
1/19/00, final maturity date 4/19/00.... 19,995,876
--------------
98,999,580
--------------
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
FLOATING RATE BANK SECURITIES (CONTINUED)
BANK NOTE--1.3%
$15,000,000 American Express Centurion Bank+, 6.43%,
payable monthly, interest rate resets
monthly, next rate reset date 1/27/00,
final maturity date 4/03/00............. $ 15,000,000
20,000,000 First Union National Bank, 6.58%,
payable monthly, interest rates resets
monthly, next interest rate reset date
1/27/00, final maturity date
9/27/2000............................... 20,000,000
10,000,000 First Union National Bank, 4.93%,
payable monthly, interest rate resets
monthly, next rate reset date 1/10/00,
final maturity date 6/08/00............. 10,000,000
--------------
45,000,000
--------------
TOTAL FLOATING RATE BANK SECURITIES
(Cost $143,999,580)..................... 143,999,580
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
CORPORATE BONDS--2.8%
ASSET BACKED SECURITIES-TRADE & LEASE RECEIVABLES--0.1%
$ 2,181,844 Ford Credit Auto Owner, 5.114%,
5/15/00................................. $ 2,181,844
--------------
BANKS--DOMESTIC INSTITUTIONS--1.7%
10,000,000 First National Bank of Chicago, 5.09%,
4/20/00................................. 9,998,258
20,000,000 Greenwood Trust Company,
6.10%, 2/10/00.......................... 20,000,000
25,000,000 Lasalle National Bank, 5.65%, 7/17/00... 24,993,504
5,270,000 NationsBank, 5.70%, 9/11/00............. 5,255,647
--------------
60,247,409
--------------
FINANCE COMPANIES--NON-CAPTIVE AND INDEPENDENT--0.7%
20,000,000 Associates Corp. of North America,
5.78%, 1/25/00.......................... 19,922,933
5,000,000 Associates Corp. of North America,
5.25%, 3/30/00.......................... 4,990,210
--------------
24,913,143
--------------
FOOD PROCESSING--0.3%
10,000,000 Sara Lee Corp., 7.75%, 2/03/00.......... 10,022,510
--------------
TOTAL CORPORATE BONDS
(Cost $97,364,906)...................... 97,364,906
--------------
</TABLE>
<TABLE>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
UNITED STATES GOVERNMENT OBLIGATIONS--0.6%
UNITED STATES TREASURY NOTES--0.6%
$ 5,000,000 5.375%, 1/31/00......................... $ 5,002,735
5,000,000 5.50%, 5/31/00.......................... 5,010,862
10,000,000 5.75%, 10/31/00......................... 9,994,345
--------------
20,007,942
--------------
TOTAL UNITED STATES GOVERNMENT
OBLIGATIONS
(Cost $20,007,942)...................... 20,007,942
--------------
</TABLE>
<TABLE>
<C> <S> <C>
REPURCHASE AGREEMENTS--8.0%
REPURCHASE AGREEMENT WITH BARCLAYS CAPITAL, INC.--1.2%
40,000,000 2.60%, dated 12/31/99, due 1/03/00,
repurchase price $40,008,667 (Collateral
FNMA Notes 6.625%, 9/15/09; aggregate
market value plus accrued interest
$40,800,475)............................ 40,000,000
--------------
REPURCHASE AGREEMENT WITH DEUTSCHE BANK SECURITIES
INC.--2.0%
70,000,000 3.2%, dated 12/31/99, due 1/03/00,
repurchase price $70,018,667
(Collateral-FNMA Discount Note 0.00%,
1/18/00; aggregate market value plus
accrued interest $71,400,218)........... 70,000,000
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENT WITH J.P. MORGAN SECURITIES,
INC.--2.0%
$70,000,000 3.00%, dated 12/31/99, due 1/03/00,
repurchase price $70,017,500
(Collateral-FHLMC, 6.35%, 7/17/08; TVBB,
5.375%, 11/13/08; aggregate market value
plus accrued interest $71,400,225)...... $ 70,000,000
--------------
REPURCHASE AGREEMENT WITH MORGAN STANLEY DEAN
WITTER--1.7%
60,000,000 2.80%, dated 12/31/99, due 1/03/00,
repurchase price $60,014,000
(Collateral-FNMA Discount Note, ADBB
5.59%, 7/16/18; aggregate market value
plus accrued interest $61,342,507 )..... 60,000,000
--------------
PRINCIPAL
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENT WITH SALOMON SMITH BARNEY--1.1%
$40,000,000 2.05%, dated 12/31/99, due 1/03/00,
repurchase price $40,006,833
(Collateral-FNMA Discount Note, 6.25%,
9/25/28; aggregate market value plus
accrued interest $41,200,000)........... $ 40,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $280,000,000)..................... 280,000,000
--------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $3,449,093,551)(a)--98.9%......... 3,449,093,551
Other assets less liabilities--1.1%..... 40,093,727
--------------
NET ASSETS--100.0%...................... $3,489,187,278
==============
</TABLE>
+ REPRESENTS YIELD AT TIME OF PURCHASE FOR COMMERCIAL PAPER, DISCOUNTED RATE
AT TIME OF PURCHASE FOR UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS,
AND INTEREST RATE IN EFFECT AT DECEMBER 31, 1999 FOR FLOATING RATE NOTES.
ADBB AFRICAN DEVELOPMENT BANK BOND.
FHLMC FEDERAL HOME LOAN MORTGAGE CORP.
TVBB TENNESSEE VALLEY BANK BOND.
FNMA FEDERAL NATIONAL MORTGAGE ASSOCIATION.
(a) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES.
SEE NOTES TO FINANCIAL STATEMENTS.
100
<PAGE>
BNY HAMILTON MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at value, including
repurchase agreements of
$280,000,000 (Cost $3,449,093,551).......................................... $3,449,093,551
Cash.......................................................................... 257
Receivables:
Capital stock sold.......................................................... 61,233,717
Interest.................................................................... 13,884,268
Other assets.................................................................. 96,323
--------------
TOTAL ASSETS................................................................ 3,524,308,116
--------------
LIABILITIES:
Payables:
Capital stock redeemed...................................................... 26,454,419
Dividends................................................................... 7,374,433
Services provided by The Bank of New York and Administrator................. 1,109,624
Accrued expenses and other liabilities........................................ 182,362
--------------
TOTAL LIABILITIES........................................................... 35,120,838
--------------
NET ASSETS:..................................................................... $3,489,187,278
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 3,489,183
Capital surplus............................................................... 3,485,689,532
Accumulated net realized gain on investments.................................. 8,563
--------------
NET ASSETS...................................................................... $3,489,187,278
==============
HAMILTON SHARES:
Net assets.................................................................... $1,725,340,682
==============
Shares outstanding............................................................ 1,725,342,085
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
HAMILTON PREMIER SHARES:
Net assets.................................................................... $ 871,286,561
==============
Shares outstanding............................................................ 871,281,962
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
HAMILTON CLASSIC SHARES:
Net assets.................................................................... $ 892,560,035
==============
Shares outstanding............................................................ 892,559,264
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
Hamilton Shares authorized @ $.001 par value.................................... 3,000,000,000
Hamilton Premier Shares authorized @ $.001 par value............................ 3,000,000,000
Hamilton Classic Shares authorized @ $.001 par value............................ 3,000,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 156,019,505
--------------
EXPENSES:
Advisory...................................................................... 3,014,970
Administration................................................................ 3,014,970
12b-1 fee: Hamilton Classic Shares............................................ 1,597,213
Servicing fee:
Hamilton Premier Shares........................................... 2,044,968
Hamilton Classic Shares........................................... 1,597,213
Registration and filings...................................................... 245,855
Custodian..................................................................... 210,623
Reports to shareholders....................................................... 182,955
Transfer agent................................................................ 153,927
Legal......................................................................... 123,909
Audit......................................................................... 80,284
Accounting services........................................................... 59,848
Insurance..................................................................... 32,558
Cash management............................................................... 22,802
Directors..................................................................... 15,782
Other......................................................................... 109,884
--------------
TOTAL EXPENSES.............................................................. 12,507,761
--------------
Earnings credit adjustment (Note 3)........................................... (25,018)
--------------
NET EXPENSES................................................................ 12,482,743
--------------
NET INVESTMENT INCOME....................................................... $ 143,536,762
Net realized gain on investments.............................................. 8,555
--------------
Net increase in net assets resulting
from operations............................................................. $ 143,545,317
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
101
<PAGE>
BNY HAMILTON MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------
1999 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 143,536,762 $ 103,213,492
Net realized gain on investments.............................................. 8,555 --
--------------- ---------------
Net increase in net assets resulting from operations........................ 143,545,317 103,213,492
--------------- ---------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Hamilton Shares............................. (76,653,154) (58,674,160)
Hamilton Premier Shares..................... (38,415,385) (43,650,908)
Hamilton Classic Shares..................... (28,466,647) (903,654)
--------------- ---------------
(143,535,186) (103,228,722)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS AT $1.00 PER SHARE:
Proceeds from capital stock sold:
Hamilton Shares................................... 5,967,303,526 3,662,245,203
Hamilton Premier Shares........................... 7,643,411,324 9,474,354,796
Hamilton Classic Shares........................... 7,996,889,396 76,263,435
Proceeds from shares issued on reinvestment of dividends:
Hamilton Shares.............. 16,409,278 6,615,671
Hamilton Premier Shares...... 19,109,421 27,238,815
Hamilton Classic Shares...... 28,391,170 775,787
Cost of capital stock repurchased:
Hamilton Shares.................................. (5,697,902,968) (3,292,905,293)
Hamilton Premier Shares.......................... (7,855,882,869) (9,125,281,782)
Hamilton Classic Shares.......................... (7,152,715,884) (73,769,087)
--------------- ---------------
Increase in net assets resulting from capital stock transactions............ 965,012,394 755,537,545
--------------- ---------------
INCREASE IN NET ASSETS.................................................... 965,022,525 755,522,315
NET ASSETS:
Beginning of year............................................................. 2,524,164,753 1,768,642,438
--------------- ---------------
End of year................................................................... $ 3,489,187,278 $ 2,524,164,753
=============== ===============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Hamilton Shares..................................................... 5,967,303,526 3,662,245,203
Hamilton Premier Shares............................................. 7,643,411,324 9,474,354,796
Hamilton Classic Shares............................................. 7,996,888,196 76,263,435
Shares issued on reinvestment of dividends:
Hamilton Shares.......................... 16,415,417 6,615,671
Hamilton Premier Shares.................. 19,107,816 27,238,815
Hamilton Classic Shares.................. 28,392,431 775,787
Shares repurchased:
Hamilton Shares............................................... (5,697,902,968) (3,292,905,293)
Hamilton Premier Shares....................................... (7,855,882,869) (9,125,281,782)
Hamilton Classic Shares....................................... (7,152,715,883) (73,769,087)
--------------- ---------------
Net increase................................................................ 965,016,990 755,537,545
Shares outstanding, beginning of year......................................... 2,524,166,321 1,768,628,776
--------------- ---------------
Shares outstanding, end of year............................................... 3,489,183,311 2,524,166,321
=============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
102
<PAGE>
BNY HAMILTON MONEY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON SHARES
--------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------------- ---------- ---------- -------- --------
<S> <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
---------- ---------- ---------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income.... 0.050 0.053 0.053 0.052 0.057
---------- ---------- ---------- -------- --------
DIVIDENDS
Dividends from net
investment income...... (0.050) (0.053) (0.053) (0.052) (0.057)
---------- ---------- ---------- -------- --------
Net asset value at end of
year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ======== ========
TOTAL RETURN:............ 5.03% 5.41% 5.47% 5.30% 5.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year
(000's omitted)........ $1,725,341 $1,439,525 $1,063,579 $609,424 $604,053
Ratio to average net
assets of:
Expenses............... 0.24% 0.26% 0.25% 0.27% 0.26%
Net investment
income............... 4.92% 5.25% 5.34% 5.17% 5.67%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
103
<PAGE>
BNY HAMILTON MONEY FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON PREMIER SHARES
--------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------
1999 1998 1997 1996 1995
-------- ---------- -------- -------- --------
<S> <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
-------- ---------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income.... 0.047 0.050 0.051 0.049 0.054
-------- ---------- -------- -------- --------
DIVIDENDS
Dividends from net
investment income...... (0.047) (0.050) (0.051) (0.049) (0.054)
-------- ---------- -------- -------- --------
Net asset value at end of
year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========== ======== ======== ========
TOTAL RETURN:............ 4.77% 5.14% 5.19% 5.03% 5.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year
(000's omitted)........ $871,287 $1,064,645 $688,339 $463,759 $340,163
Ratio to average net
assets of:
Expenses............... 0.49% 0.51% 0.51% 0.53% 0.54%
Net investment
income............... 4.70% 5.01% 5.09% 4.91% 5.40%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
104
<PAGE>
BNY HAMILTON MONEY FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON CLASSIC SHARES
------------------------------------------------------
FOR THE PERIOD
YEAR ENDED DECEMBER 31, DECEMBER 4, 1995*
----------------------------------- THROUGH
1999 1998 1997 1996 DECEMBER 31, 1995
-------- ------- ------- ------- -----------------
<S> <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
-------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.044 0.047 0.047 0.046 0.004
-------- ------- ------- ------- ------
DIVIDENDS
Dividends from net investment income.... (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
======== ======= ======= ======= ======
TOTAL RETURN:........................... 4.51% 4.81% 4.80% 4.73% 0.40%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $892,560 $19,995 $16,725 $13,478 $3,098
Ratio to average net assets of:
Expenses.............................. 0.74% 0.83% 0.88% 0.82% 0.76%***
Net investment income................. 4.46% 4.70% 4.71% 4.67% 5.18%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
105
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
UNITED STATES GOVERNMENT OBLIGATIONS--36.3%
UNITED STATES TREASURY BILLS+--21.5%
$ 10,000,000 4.64%, 1/06/00.......................... $ 9,993,556
75,000,000 5.30%, 1/13/00.......................... 74,868,633
95,000,000 5.03%, 1/20/00.......................... 94,739,898
10,000,000 4.88%, 2/10/00.......................... 9,945,722
------------
189,547,809
------------
UNITED STATES TREASURY NOTES--14.8%
15,000,000 5.375%, 1/31/00......................... 15,006,170
10,000,000 5.875%, 2/15/00......................... 10,013,615
5,000,000 5.50%, 2/29/00.......................... 5,004,435
10,000,000 5.50%, 3/31/00.......................... 10,009,256
10,000,000 5.50%, 4/15/00.......................... 10,017,530
10,000,000 5.625%, 4/30/00......................... 10,011,860
15,000,000 5.50%, 5/31/00.......................... 15,030,015
10,000,000 5.875%, 6/30/00......................... 10,024,772
5,000,000 5.375%, 7/31/00......................... 4,996,716
10,000,000 6.25%, 8/31/00.......................... 10,050,236
10,000,000 6.125%, 9/30/00......................... 10,007,484
10,000,000 5.75%, 10/31/00......................... 9,993,638
10,000,000 5.75%, 11/15/00......................... 9,975,686
------------
130,141,413
------------
TOTAL UNITED STATES GOVERNMENT
OBLIGATIONS
(Cost $299,706,052)..................... 319,689,222
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
REPURCHASE AGREEMENTS--62.9%
REPURCHASE AGREEMENT WITH BARCLAYS CAPITAL,
INC.--12.5%
$110,000,000 2.50%, dated 12/31/99, due 1/03/00
repurchase price $110,022,917
(Collateral--UST TRIN 3.3750%, 1/15/07;
aggregate market value plus accrued
interest $112,200,789).................. $110,000,000
------------
REPURCHASE AGREEMENT WITH DEUTSCHE BANK SECURITIES
INC.--5.6%
50,000,000 2.80%, dated 12/31/99, due 1/03/00
repurchase price $50,011,667
(Collateral--UST Note, 6.50% 10/15/06;
UST Bonds, 6.75%-13.375%,
8/15/01-8/15/26; aggregate market value
plus accrued interest $51,000,128)...... 50,000,000
------------
REPURCHASE AGREEMENT WITH GOLDMAN, SACHS & CO.--5.7%
50,000,000 2.00%, dated 12/31/99, due 1/03/00
repurchase price $50,008,333
(Collateral--UST Note, 8.50%, 11/15/00;
UST Bonds, 6.25%-13.25%,
5/15/14-8/15/23; market value plus
accrued interest $51,000,285)........... 50,000,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
106
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENT WITH J.P. MORGAN SECURITIES,
INC.--14.2%
$125,041,000 2.50%, dated 12/31/99, due 1/03/00
repurchase price $125,067,050
(Collateral--UST Notes, 4.750%-7.875%,
8/15/01-11/15/08; UST Bonds, 8.0%-9.0%,
11/15/18-11/15/21; aggregate market
value plus accrued interest
$127,514,471)........................... $125,041,000
------------
REPURCHASE AGREEMENT WITH MORGAN STANLEY DEAN
WITTER--13.0%
115,000,000 2.50% dated 12/31/99, due 1/03/00
repurchase price $115,023,958
(Collateral--UST Note, 6.50%, 8/31/01;
aggregate market value plus accrued
interest $117,933,161).................. 115,000,000
------------
REPURCHASE AGREEMENT WITH SALOMON SMITH BARNEY--11.9%
105,000,000 2.00% dated 12/31/99, due 1/03/00
repurchase price $105,017,500
(Collateral--UST Note, 6.625% 3/31/02;
aggregate market value plus accrued
interest $107,182,781).................. 105,000,000
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
TOTAL REPURCHASE AGREEMENTS
(Cost $555,041,000)..................... $555,041,000
------------
</TABLE>
<TABLE>
<C> <S> <C>
TOTAL INVESTMENTS--
(Cost $874,730,222)(a)-- 99.2%.......... 874,730,222
Other assets less
liabilities--0.8%....................... 7,329,839
------------
NET ASSETS--100.0%...................... $882,060,061
============
</TABLE>
+ COUPON RATE REPRESENTS DISCOUNTED RATE AT TIME OF PURCHASE FOR UNITED
STATES TREASURY BILLS.
UST UNITED STATES TREASURY.
TRIN TREASURY INFLATION NOTE.
(a) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES.
SEE NOTES TO FINANCIAL STATEMENTS.
107
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at value, including repurchase agreements of $555,041,000
(Cost $874,730,222)......................................................... $ 874,730,222
Cash.......................................................................... 736
Receivables:
Capital stock sold.......................................................... 18,436,784
Interest receivable......................................................... 1,767,045
Deferred organization costs and other assets.................................. 43,398
--------------
TOTAL ASSETS................................................................ 894,978,185
--------------
LIABILITIES:
Payables:
Capital stock redeemed...................................................... 11,235,274
Dividends................................................................... 1,301,823
Services provided by The Bank of New York and Administrator................... 326,759
Accrued expenses and other liabilities........................................ 54,268
--------------
TOTAL LIABILITIES........................................................... 12,918,124
--------------
NET ASSETS:..................................................................... $ 882,060,061
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 882,054
Capital surplus............................................................... 881,175,398
Accumulated net realized gain on investments.................................. 4,978
Distributions in excess of net investment income.............................. (2,369)
--------------
NET ASSETS...................................................................... $ 882,060,061
==============
HAMILTON SHARES:
Net assets.................................................................... $ 225,481,814
==============
Shares outstanding............................................................ 225,480,000
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
HAMILTON PREMIER SHARES:
Net assets.................................................................... $ 429,461,491
==============
Shares outstanding............................................................ 429,458,964
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
HAMILTON CLASSIC SHARES:
Net assets.................................................................... $ 227,116,756
==============
Shares outstanding............................................................ 227,115,474
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
Hamilton Shares authorized @ $.001 par value.................................... 2,000,000,000
Hamilton Premier Shares authorized @ $.001 par value............................ 2,000,000,000
Hamilton Classic Shares authorized @ $.001 par value............................ 2,000,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 35,928,099
--------------
EXPENSES:
Advisory...................................................................... 723,256
Administration................................................................ 723,256
12b-1 fee: Hamilton Classic Shares............................................ 300,784
Servicing fee--Hamilton Premier Shares........................................ 990,360
Hamilton Classic Shares.......................................... 300,704
Registration and filings...................................................... 148,131
Custodian..................................................................... 97,568
Accounting services........................................................... 59,800
Reports to shareholders....................................................... 52,543
Transfer agent................................................................ 52,474
Legal......................................................................... 34,156
Audit......................................................................... 20,668
Directors..................................................................... 17,388
Cash management............................................................... 7,502
Organization.................................................................. 6,464
Insurance..................................................................... 5,054
Other......................................................................... 55,942
--------------
TOTAL EXPENSES.............................................................. 3,596,050
--------------
Earnings credit adjustment (Note 3)........................................... (10,783)
--------------
NET EXPENSES................................................................ 3,585,267
--------------
NET INVESTMENT INCOME....................................................... 32,342,832
NET REALIZED GAIN ON INVESTMENTS............................................ 4,978
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 32,347,810
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
108
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------
1999 1998
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 32,342,832 $ 24,992,057
Net realized gain on investments.............................................. 4,978 1,044
--------------- ---------------
Net increase in net assets resulting from operations........................ 32,347,810 24,993,101
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income:
Hamilton Shares........................... (9,690,422) (8,862,413)
Hamilton Premier Shares................... (17,470,365) (16,129,644)
Hamilton Classic Shares................... (5,181,736) 0
--------------- ---------------
(32,342,523) (24,992,057)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Hamilton Shares.................................. 1,661,381,430 758,097,192
Hamilton Premier Shares.......................... 2,334,059,545 2,984,119,812
Hamilton Classic Shares.......................... 1,491,861,700 0
Proceeds from shares issued on reinvestment
of dividends: Hamilton Shares............................................... 5,989,186 3,882,860
Hamilton Premier Shares......................................... 7,764,447 7,344,494
Hamilton Classic Shares......................................... 5,172,423 0
Cost of capital stock repurchased:
Hamilton Shares................................. (1,643,253,379) (671,336,485)
Hamilton Premier Shares......................... (2,432,857,304) (2,654,867,480)
Hamilton Classic Shares......................... (1,269,918,648) 0
--------------- ---------------
Increase in net assets resulting from capital stock transactions............ 160,199,400 427,240,393
--------------- ---------------
INCREASE IN NET ASSETS.................................................... 160,204,687 427,241,437
NET ASSETS:
Beginning of year............................................................. 721,855,374 294,613,937
--------------- ---------------
End of year................................................................... $ 882,060,061 $ 721,855,374
=============== ===============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Hamilton Shares.................................................... 1,661,381,145 758,097,192
Hamilton Premier Shares............................................ 2,334,059,545 2,984,119,812
Hamilton Classic Shares............................................ 1,491,861,700
Shares issued on reinvestment of dividends:
Hamilton Shares........................ 5,989,186 3,882,860
Hamilton Premier Shares................ 7,764,447 7,344,494
Hamilton Classic Shares................ 5,172,423 0
Shares repurchased:
Hamilton Shares.............................................. (1,643,253,379) (671,336,485)
Hamilton Premier Shares...................................... (2,432,856,994) (2,654,867,480)
Hamilton Classic Shares...................................... (1,269,918,648) 0
--------------- ---------------
Net increase................................................................ 160,199,425 427,240,393
Shares outstanding, beginning of year......................................... 721,855,013 294,614,620
--------------- ---------------
Shares outstanding, end of year............................................... 882,054,438 721,855,013
=============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
109
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON SHARES
----------------------------------------------
FOR THE
PERIOD
APRIL 1,
YEAR YEAR 1997*
ENDED ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1997
------------ ------------ ------------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period............................ $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income............... 0.047 0.051 0.040
-------- -------- --------
DIVIDENDS
Dividends from net investment
income............................ (0.047) (0.051) (0.040)
-------- -------- --------
Net asset value at end of period.... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
TOTAL RETURN:....................... 4.79% 5.25% 4.02%**
RATIOS/SUPPLEMENTAL
DATA:
Net assets at end of period
(000's omitted)................... $225,482 $201,363 $110,719
Ratio to average net assets of:
Expenses, net of waiver from The
Bank of New York................ 0.28% 0.27% 0.25%***
Expenses, prior to waiver from The
Bank of New York................ 0.28% 0.28% 0.33%***
Net investment income, net of
waiver from The Bank of New
York............................ 4.69% 5.09% 5.29%***
<CAPTION>
HAMILTON
HAMILTON PREMIER SHARES CLASSIC
---------------------------------------------- SHARES
FOR THE -------------------
PERIOD FOR THE PERIOD
APRIL 1, APRIL 30,
YEAR YEAR 1997* 1999*
ENDED ENDED THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1997 1999
------------ ------------ ------------------ -------------------
<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............... 0.045 0.049 0.038 0.029
-------- -------- -------- --------
DIVIDENDS
Dividends from net investment
income............................ (0.045) (0.049) (0.038) (0.029)
-------- -------- -------- --------
Net asset value at end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
TOTAL RETURN:....................... 4.54% 4.99% 3.83%** 2.90%**
RATIOS/SUPPLEMENTAL
DATA:
Net assets at end of period
(000's omitted)................... $429,461 $520,492 $183,895 $227,117
Ratio to average net assets of:
Expenses, net of waiver from The
Bank of New York................ 0.52% 0.52% 0.50%*** 0.78%***
Expenses, prior to waiver from The
Bank of New York................ 0.52% 0.53% 0.56%*** 0.78%***
Net investment income, net of
waiver from The Bank of New
York............................ 4.41% 4.82% 5.06%*** 4.33%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
110
<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 ten series: BNY Hamilton Equity Income Fund (the "Equity Income
Fund"), 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
Intermediate Government Fund (the "Intermediate Government Fund"), BNY Hamilton
Intermediate Investment Grade Fund (the "Intermediate Investment Grade Fund"),
BNY Hamilton Intermediate New York Tax-Exempt Fund (the "Intermediate New York
Tax-Exempt Fund"), BNY Hamilton Intermediate Tax-Exempt Fund (the "Intermediate
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 and Treasury
Money Fund) consist of two classes of shares: Institutional Shares and Investor
Shares. The Money Fund and Treasury Money Fund consist of three classes of
shares: Hamilton Shares, Hamilton Premier Shares, and Hamilton Classic Shares.
Investment income, expenses (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 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.
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
111
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 foreign 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 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 (except the Money Fund and the Treasury Money Fund) 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
112
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 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
The Intermediate Government Fund, the Intermediate Investment Grade Fund, the
Intermediate New York Tax-Exempt Fund, the Intermediate 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 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.
(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 New York Tax-Exempt Fund and the Intermediate Tax-Exempt Fund are
accreted, and premiums on securities purchased for the Intermediate New York
Tax-Exempt Fund, the Intermediate 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
113
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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>
Equity Income Fund...................... .60%
Large Cap Growth Fund................... .60%
Small Cap Growth Fund................... .75%
International Equity Fund............... .425%
Intermediate Government Fund............ .50%
Intermediate Investment Grade Fund...... .50%
Intermediate New York
Tax-Exempt Fund....................... .50%
Intermediate 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.
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.
114
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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>
Equity Income Fund...................... .20%
Large Cap Growth Fund................... .20%
Small Cap Growth Fund................... .20%
International Equity Fund............... .20%
Intermediate Government Fund............ .20%
Intermediate Investment Grade Fund...... .20%
Intermediate New York
Tax-Exempt Fund....................... .20%
Intermediate 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 year ended December 31, 1999 is shown on its respective Statement of
Operations under the caption "Earnings Credit Adjustment." For the year ended
December 31, 1999, the Intermediate New York Tax-Exempt Fund did not earn any
such monies.
For the period January 1, 1999 - March 31, 1999, 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 Growth Fund................... .82% 1.07%
Small Cap Growth Fund................... .97% 1.22%
International Equity Fund............... 1.27% 1.52%
Intermediate Government Fund............ .90% 1.15%
Intermediate Investment Grade Fund...... .90% 1.15%
Intermediate New York
Tax-Exempt Fund....................... .90% 1.15%
Intermediate Tax-Exempt Fund............ .90% 1.15%
</TABLE>
Commencing April 1, 1999, the waivers for both classes of the Large Cap Growth
Fund and International Equity Fund were discontinued. 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>
Small Cap Growth Fund................... 1.11% 1.36%
Intermediate Government Fund............ .79% 1.04%
Intermediate Investment Grade Fund...... .79% 1.04%
Intermediate New York
Tax-Exempt Fund....................... .79% 1.04%
Intermediate Tax-Exempt Fund............ .79% 1.04%
</TABLE>
The Equity Income Fund, Money Fund, and Treasury Money Fund did not have any
expense waivers for the year ended December 31, 1999.
Management reserves the right to implement or discontinue expense limitations
at any time.
The Company has adopted a distribution plan (the "12b-1 Plans") with respect
to each
115
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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>
Equity Income Fund...................... Investor April 1, 1997
Large Cap Growth Fund................... Investor May 1, 1997
Small Cap Growth Fund................... Investor May 1, 1997
International Equity Fund............... Investor May 1, 1997
Intermediate Government Fund............ Investor April 1, 1997
Intermediate Investment Grade Fund...... Investor May 1, 1997
Intermediate New York Tax-Exempt Fund... Investor April 1, 1997
Intermediate
Tax-Exempt Fund....................... Investor May 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 both of those Funds 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 of the 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.
The brokerage firm of ESI Securities ("ESI") became a wholly-owned subsidiary
of the Bank of New York in 1998. During the year ended December 31, 1999, the
Large Cap Growth Fund paid brokerage commissions of $1,050, to ESI.
4. PORTFOLIO SECURITIES
For the year ended December 31, 1999, the cost of securities purchased and the
proceeds from sales of securities, excluding short-term securities, were as
follows:
<TABLE>
<CAPTION>
EQUITY INCOME FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 288,455,917 323,741,176
<CAPTION>
LARGE CAP GROWTH FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 84,244,954 112,941,327
</TABLE>
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
SMALL CAP GROWTH FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 208,079,629 205,296,049
<CAPTION>
INTERNATIONAL EQUITY FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 189,543,104 171,253,623
<CAPTION>
INTERMEDIATE
GOVERNMENT FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ 19,075,313 $ 12,381,433
All Others........................................ 0 0
<CAPTION>
INTERMEDIATE INVESTMENT
GRADE FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $173,670,539 $131,565,624
All Others........................................ 82,335,005 92,684,350
<CAPTION>
INTERMEDIATE NEW YORK
TAX-EXEMPT FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 13,057,917 15,374,141
<CAPTION>
INTERMEDIATE TAX-EXEMPT
FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 88,080,445 87,416,502
</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>
6. WRITTEN OPTION ACTIVITY
Transactions in written options for the year ended December 31, 1999 were as
follows:
EQUITY INCOME FUND
<TABLE>
<CAPTION>
NUMBER
OF PREMIUMS
CONTRACTS RECEIVED
--------- ---------
<S> <C> <C>
Options outstanding at December 31,
1998.................................. 600 $ 163,194
Options written during the period....... 2,990 716,069
Options terminating on closing purchase
transactions.......................... (1,235) (245,974)
Options exercised....................... (25) (5,237)
Options expired......................... (2,200) (550,445)
-------- ---------
Options outstanding at December 31,
1999.................................. 130 77,607
======== =========
</TABLE>
117
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
LARGE CAP GROWTH FUND
<TABLE>
<CAPTION>
NUMBER
OF PREMIUMS
CONTRACTS RECEIVED
--------- -----------
<S> <C> <C>
Options outstanding at December 31,
1998.................................. 1,800 $ 590,832
Options written during the period....... 13,769 5,019,126
Options terminated in closing purchase
transactions.......................... (1,700) (653,153)
Options exercised....................... (3,806) (918,368)
Options expired......................... (7,713) (3,189,316)
-------- -----------
Options outstanding at December 31,
1999.................................. 2,350 $ 849,121
======== ===========
</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.
10. YEAR 2000 (UNAUDITED)
The Funds could be adversely affected if the computer systems used by the
Adviser and the Company's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Adviser
is working to avoid Year 2000-related problems in its systems and to obtain
assurances from other service providers that they are taking similar steps. In
addition, issuers of securities in which each Fund invests may be adversely
affected by Year 2000-related problems. This could have an impact on the value
of each Fund's investments and their share prices.
11. CHANGE OF INDEPENDENT ACCOUNTANTS
During the fiscal year the Board of Trustees of the Funds approved a change of
the Company's Independent Auditors to Ernst & Young LLP.
118
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND TRUSTEES
BNY HAMILTON FUNDS
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of BNY Hamilton Funds (comprising,
respectively, the Equity Income Fund, Large Cap Growth Fund, Small Cap Growth
Fund, International Equity Fund, Intermediate Government Fund, Intermediate
Investment Grade Fund, Intermediate New York Tax Exempt Fund, Intermediate Tax
Exempt Fund, Money Fund, and Treasury Money Fund) as of December 31, 1999 and
the related statements of operations, the statements of changes in net assets,
and the financial highlights for the year then ended. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
and financial highlights of the Fund for the year ended December 31, 1998 and
the financial highlights for each of the prior periods indicated therein were
audited by other auditors whose report dated February 17, 1999, expressed an
unqualified opinion on those statements.
We conducted our audit in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
financial statements and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of
December 31, 1999 and confirmation of securities not held by the custodian by
correspondence with brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective funds comprising BNY Hamilton Funds at December 31, 1999,
the results of their operations, changes in their net assets and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States.
New York, New York
February 11, 2000
119
<PAGE>
DIRECTORS AND OFFICERS
Edward L. Gardner, Director and Chairman of the Board
Peter Herrick, Director
Stephen Stamas, Director
James E. Quinn, Director
Karen Osar, Director
Kim Kelly, Director
J. David Huber, Chief Executive Officer
William J. Tomko, President
Richard Baxt, Vice President
Michael A. Grunewald, Vice President
Nimish Bhatt, Treasurer
Ellen Stoutamire, Secretary
Alaina Metz, 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
120
<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 distributors 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, 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
90 Park Avenue, 10th Floor
New York, NY 10016
