DEAR SHAREHOLDER:
1995 was characterized by a powerful bull market, narrow sector leadership
and extreme lows in volatility, conditions which are unfavorable to our
diversification process. The Fund's 33.8% return for 1995 was in line with
return expectations given the current market environment. We expect market
volatility to rise in 1996 which should produce a rotation in market leadership
toward the Fund's positions.
The U.S. Large Stock Fund ("USLSF") outperformed the S&P 500 in the 4th
quarter, with a return of 7.2% verses the S&P 500's 6.0% return over the same
period. The contributing factors to outperformance relative to the S&P 500 in
the 4th quarter were the significant overweighting in the energy sector, and
our stock positions in the technology sector. Our stock holdings in the
consumer nondurable sector resulted in our largest negative performance relative
to the S&P. During the 4th quarter the portfolio's largest active positions
relative to the S&P were in the Energy and Utility sectors. The Fund's
largest underweighting was in the Financials. The five largest holdings
totaling approximately 15% of the Fund were Exxon, Royal Dutch, IBM, Mobil,
and Eli Lilly.
The Fund's beta remains at an historic low, reflecting the extreme
defensive configuration of the portfolio relative to the S&P. The Fund
remains positioned for a correction in the market.
Sincerely,
/s/ Roger J. Weiss
Roger J. Weiss
Chairman of the Board
January 24, 1996
<PAGE>
<TABLE>
<CAPTION>
US LARGE STOCK FUND
Schedule of Investments at December 31, 1995
<C> <C> <S> <C>
Number Value
of Shares Security (000's)
COMMON STOCK (97.5%)
Capital Goods (14.3%)
50,100 International Business Machines
Corp........................... $4,597
32,700 Boeing Co.......................... 2,563
30,900 Rockwell International Corp........ 1,634
14,200 McDonnell Douglas Corp............. 1,306
9,500 Xerox Corp......................... 1,302
56,000 Westinghouse Electric Corp......... 924
19,100 Raytheon Co........................ 903
17,100 Honeywell Inc...................... 831
19,600 Loral Corp......................... 693
19,700 Apple Computer Inc................. 628
42,200 # Novell Inc......................... 601
15,332 AMP Inc............................ 588
14,200 Tyco Labs Inc...................... 506
6,300 # Computer Sciences Corp............. 443
15,900 Pall Corp.......................... 427
6,500 Northrop Corp...................... 416
24,200 Advanced Micro Devices Inc......... 399
11,050 Parker Hannifin Corp............... 378
7,800 ALCO Standard Corp................. 356
5,600 Raychem Corp....................... 319
4,800 Grainger W W Inc................... 318
8,900 Autodesk Inc....................... 305
8,100 Dover Corp......................... 299
4,600 General Dynamics Corp.............. 272
5,200 Avery Dennison Corp................ 261
6,500 # Andrew Corp........................ 249
13,000 Moore Ltd.......................... 242
6,300 Perkin Elmer Corp.................. 238
6,900 Harnischfeger Industries Inc....... 229
40,200 # Unisys Corp........................ 226
7,900 Teledyne Inc....................... 202
4,800 # Ceridian Corp...................... 198
22,800 # Amdahl Corp........................ 194
3,500 Harris Corp........................ 191
2,500 # FMC Corp........................... 169
15,140 # Navistar International Corp........ 159
4,900 General Signal Corp................ 159
6,400 EG & G Inc......................... 155
5,300 Cincinnati Milacron Inc............ 139
1,700 Thomas & Betts Corp................ 125
4,300 Trinova Corp....................... 123
2,400 Briggs & Stratton Corp............. 104
2,700 Timken Co.......................... 103
6,400 # Intergraph Corp.................... 101
5,200 Giddings & Lewis Inc............... 86
3,200 # Cray Research Inc.................. 79
4,900 # Data General Corp.................. 67
2,800 Harland John H Co.................. 58
1,100 Zurn Industries Inc................ 24
2,874 # Zenith Electronics Corp............ 20
4,200 # Morrison Knudsen Corp.............. 18
24,927
Number Value
of Shares Security (000's)
Consumer Durables (2.5%)
13,400 Eaton Corp......................... $719
5,800 TRW Inc............................ 449
9,800 Genuine Parts Co................... 402
11,200 Black & Decker Corp................ 395
8,800 Echlin Inc......................... 321
12,900 Cooper Tire & Rubber Co............ 318
4,900 Armstrong World Industries Inc..... 304
14,200 Maytag Corp........................ 288
6,730 Paccar Inc......................... 283
7,400 Cummins Engine Inc................. 274
3,900 Stanley Works...................... 201
2,300 Goodrich B F Co.................... 157
2,600 Snap On Inc........................ 118
3,200 Outboard Marine Corp............... 65
2,000 Bassett Furniture Industries Inc... 46
1,100 Mattel Inc......................... 34
700 SPX Corp........................... 11
4,385
Consumer Miscellaneous (0.3%)
11,000 Service Corp International......... 484
Consumer Non-Durables (28.1%)
69,000 Lilly Eli & Co..................... 3,881
47,000 Eastman Kodak Co................... 3,149
55,400 Columbia/HCA Healthcare Corp....... 2,812
40,800 Schering Plough Corp............... 2,234
13,200 Unilever NV ADR.................... 1,858
39,089 # Viacom Inc Cl B.................... 1,852
21,300 Kellogg Co......................... 1,645
88,519 Archer Daniels Midland Co.......... 1,593
35,000 May Department Stores Co........... 1,479
22,300 # Amgen Inc.......................... 1,324
19,300 Anheuser Busch Cos Inc............. 1,291
27,465 # Pharmacia & Upjohn Inc............. 1,064
28,950 Heinz H J Co....................... 959
22,500 Conagra Inc........................ 928
13,200 Colgate Palmolive Co............... 927
19,800 U S Healthcare Inc................. 921
121,000 K Mart Corp........................ 877
10,400 Dayton Hudson Corp................. 780
11,200 CPC International Inc.............. 769
12,200 Ralston Purina Co-Ralston.......... 761
15,400 # Boston Scientific Corp............. 755
21,100 Quaker Oats Co..................... 728
11,600 Gannett Inc........................ 712
8,200 Loews Corp......................... 643
16,600 Marriott International Inc......... 635
5,000 Capital Cities ABC Inc............. 617
27,700 # Tenet Healthcare Corp.............. 575
20,400 American Stores Co................. 546
9,600 Pioneer Hi Bred International...... 534
13,100 # Kroger Co.......................... 491
6,300 # Federal Express Corp............... 465
See notes to financial statements
<PAGE>
US LARGE STOCK FUND
Schedule of Investments at December 31, 1995
Number Value
of Shares Security (000's)
11,100 Harcourt General Inc............... $465
15,800 Dillard Department Stores Inc
Cl A........................... 450
9,300 International Flavors &
Fragrances Inc................. 446
8,800 Premark International Inc.......... 446
6,400 Tribune Co......................... 391
5,200 Becton Dickinson & Co.............. 390
5,100 Avon Products Inc.................. 384
12,500 Melville Corp...................... 384
15,700 # Fruit of the Loom Inc Cl A......... 383
7,200 V F Corp........................... 380
10,800 Rite Aid Corp...................... 370
12,400 Reebok International Ltd........... 350
5,300 Hershey Foods Corp................. 345
11,000 New York Times Co Cl A............. 326
3,600 McGraw Hill Inc.................... 314
6,400 Polaroid Corp...................... 303
8,700 Allergan Inc....................... 283
9,800 American Greetings Corp Cl A....... 271
20,300 Woolworth Corp..................... 264
6,700 # King World Productions Inc......... 260
14,500 # Biomet Inc......................... 259
5,600 Mercantile Stores Inc.............. 259
3,400 Clorox Co.......................... 244
7,500 Giant Food Inc Cl A................ 236
3,700 Knight Ridder Inc.................. 231
6,900 Supervalu Inc...................... 217
6,800 Liz Claiborne Inc.................. 189
6,400 Russell Corp....................... 178
8,800 TJX Cos Inc........................ 166
6,800 United States Surgical Corp........ 145
4,100 UST Inc............................ 137
5,800 Great Atlantic & Pacific Tea Inc... 133
5,272 Jostens Inc........................ 128
6,100 Fleming Cos Inc.................... 126
2,800 Springs Industries Inc............. 116
3,400 National Service Industries Inc.... 110
4,900 Coors Adolph Co Cl B............... 108
2,900 Brown Forman Corp Cl B............. 106
6,600 # Bally Entertainment Corp........... 92
2,600 Alberto Culver Co Cl B............. 89
3,100 Brunswick Corp..................... 74
3,300 Lubys Cafeterias Inc............... 73
5,900 Community Psychiatric Centers...... 72
22,800 Charming Shoppes Inc............... 66
1,100 Longs Drug Stores Corp............. 53
1,200 Meredith Corp...................... 50
6,600 Stride Rite Corp................... 50
4,800 # Shoneys Inc........................ 49
4,800 # Ryans Family Steak Houses Inc...... 34
4,700 Handleman Co....................... 27
1,700 Brown Group Inc.................... 24
48,851
Number Value
of Shares Security (000's)
Energy (21.5%)
100,000 Exxon Corp......................... $8,013
46,700 Royal Dutch Petroleum Co ADR....... 6,591
32,200 Mobil Corp......................... 3,606
43,700 Amoco Corp......................... 3,141
54,900 Chevron Corp....................... 2,882
26,800 Schlumberger Ltd................... 1,856
22,100 Texaco Inc......................... 1,735
14,400 Atlantic Richfield Co.............. 1,595
41,700 Phillips Petroleum Co.............. 1,423
48,000 Occidental Petroleum Corp.......... 1,026
20,200 Burlington Resources Inc........... 793
14,200 Amerada Hess Corp.................. 753
24,100 Baker Hughes Inc................... 587
13,084 Williams Cos Inc................... 574
17,200 Sun Inc............................ 471
10,200 Ashland Inc........................ 358
13,600 McDermott International Inc........ 299
4,300 Kerr McGee Corp.................... 273
11,000 Dresser Industries Inc............. 268
16,900 # Oryx Energy Co..................... 226
5,300 Pennzoil Co........................ 224
5,000 Louisiana Land & Exploration
Co............................. 214
15,100 # Santa Fe Energy Resources.......... 145
4,400 Helmerich & Payne Inc.............. 131
11,200 # Rowan Cos Inc...................... 111
1,700 Eastern Enterprises................ 60
1,000 NACCO Indsustries Inc Cl A......... 55
37,410
Financial (5.4%)
14,500 First Data Corp.................... 970
21,700 Keycorp ........................... 787
11,400 Fluor Corp......................... 752
4,100 General Re Corp.................... 636
6,500 Chubb Corp......................... 629
5,500 Cigna Corp......................... 568
9,400 UNUM Corp.......................... 517
5,800 Marsh & McLennan Cos Inc........... 515
9,400 Lincoln National Corp.............. 505
12,100 US Bancorp......................... 407
9,600 Boatmens Bancshares Inc............ 392
11,500 National City Corp................. 381
6,700 St Paul Cos Inc.................... 373
4,700 Transamerica Corp.................. 343
9,600 Safeco Corp........................ 331
6,800 Torchmark Corp..................... 308
7,100 Sherwin Williams Co................ 289
5,250 Jefferson Pilot Corp............... 244
4,000 Beneficial Corp.................... 186
4,000 Crane Co........................... 147
2,200 Potlatch Corp...................... 88
See notes to financial statements
<PAGE>
US LARGE STOCK FUND
Schedule of Investments at December 31, 1995
Number Value
of Shares Security (000's)
2,650 USLIFE Corp........................ $79
1,800 Skyline Corp....................... 37
9,484
Intermediate Goods & Services (9.3%)
35,700 Minnesota Mining &
Manufacturing Co............... 2,365
54,200 Barrick Gold Corp.................. 1,430
10,100 Monsanto Co........................ 1,237
37,900 Placer Dome Inc.................... 914
10,900 Kimberly Clark Corp................ 902
12,600 Dun & Bradstreet Corp.............. 816
24,100 Corning Inc........................ 771
13,490 Newmont Mining Corp................ 610
9,100 Phelps Dodge Corp.................. 566
8,900 Hercules Inc....................... 502
22,700 Engelhard Corp..................... 494
11,000 Interpublic Group Cos Inc.......... 477
7,200 Rohm & Haas Co..................... 464
13,400 Inco Ltd........................... 446
9,600 Dow Jones & Co Inc................. 383
7,600 Sigma Aldrich Corp................. 376
16,500 Worthington Industries Inc......... 343
21,600 Homestake Mining Co................ 338
31,800 Laidlaw Inc Cl B................... 326
7,400 # Crown Cork & Seal Inc.............. 309
8,900 Nalco Chemical Co.................. 268
10,300 James River Corp................... 249
8,300 Deluxe Corp........................ 241
4,300 Federal Paper Board Inc............ 223
6,100 Boise Cascade Corp................. 211
14,500 Echo Bay Mines Ltd................. 150
4,900 Ecolab Inc......................... 147
2,600 Shared Medical Systems Corp........ 141
5,100 Ball Corp.......................... 140
8,900 Safety Kleen Corp.................. 139
15,900 # Armco Inc.......................... 93
1,500 First Mississippi Corp............. 40
1,062 Firstmiss Gold Inc................. 24
16,135
Miscellaneous Industrials (0.5%)
6,000 Textron Inc........................ 405
10,100 Dial Corp.......................... 299
5,600 Millipore Corp..................... 231
935
Number Value
of Shares Security (000's)
Public Utilities (15.3%)
66,800 GTE Corp........................... $2,939
31,400 Bell Atlantic Corp................. 2,100
43,600 Sprint Corp........................ 1,739
55,000 MCI Communications Corp............ 1,437
37,500 Enron Corp......................... 1,430
53,800 Southern Co........................ 1,325
32,400 # U S West Inc....................... 1,158
15,500 Duke Power Co...................... 734
17,600 Texas Utilities Co................. 724
38,700 SCEcorp............................ 687
13,900 FPL Group Inc...................... 645
33,900 US West Inc........................ 644
18,500 Unicom Corp........................ 606
19,500 Public Service Enterprise Group.... 597
21,100 Panhandle Eastern Corp............. 588
14,100 American Electric Power Inc........ 571
15,100 Coastal Corp....................... 562
13,600 Dominion Resources Inc............. 561
17,500 Peco Energy Co..................... 527
24,200 Pacificorp......................... 514
17,000 Alltel Corp........................ 502
17,100 Entergy Corp ...................... 500
13,900 Sonat Inc.......................... 495
19,600 Houston Industries Inc............. 475
16,000 Central & South West Corp.......... 446
11,800 Carolina Power & Light Company 407
11,200 Detroit Edison Co.................. 386
11,785 Cinergy Corp....................... 361
8,400 Union Electric Co.................. 351
7,700 Consolidated Natural Gas Co........ 349
12,200 Pacific Enterprises................ 345
9,600 General Public Utilities Corp...... 326
12,000 Ohio Edison Co..................... 282
6,300 # Columbia Gas Systems Inc........... 276
5,300 Northern States Power Co........... 260
11,000 Enserch Corp....................... 179
17,400 Niagara Mohawk Power Corp.......... 168
15,400 Noram Energy Corp.................. 137
3,700 Nicor Inc.......................... 102
1,600 Bellsouth Corp..................... 70
2,500 Oneok Inc.......................... 57
26,562
Transportation (0.3%)
13,100 Whitman Corp....................... 305
5,000 Consolidated Freightways Inc....... 132
6,800 # USAir Group Inc.................... 90
5,500 Yellow Corp........................ 68
595
Total Common Stock
(Cost $139,628)................ 169,768
See notes to financial statements
<PAGE>
US LARGE STOCK FUND
Schedule of Investments at December 31, 1995
Principal
Amount Value
(000's) Security (000's)
U.S. GOVERNMENT
SECURITIES (2.2%)
(Cost $3,842)
$3,925 * U S Treasury Bills Due 5/30/96..... $3,842
Total Investments (99.7%)
(Cost $143,470)................ 173,610
Other Assets in Excess
of Liabilities (0.3%).......... 551
Total Net Assets (100.0%).......... $174,161
Number of Unrealized
Contracts Depreciation
FUTURES PURCHASED
(Aggregate Futures Amount $3,711)
12 S&P 500 Futures 3/96 .............. 13
<FN>
# Non-income producing security.
* Security pledged for futures purchased.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
U.S. LARGE STOCK FUND
Statement of Assets and Liabilities at December 31, 1995
<S> <C>
Assets:
Investments at value (Cost $143,470,256).........................$173,609,740
Cash............................................................. 34,814
Receivable for Fund shares sold.................................. 378,419
Dividends and interest receivable................................ 267,667
Receivable for variation margin.................................. 4,200
Deferred organizational expense (Net of accumulated
amortization of $31,407).................................... 35,465
Prepaid expenses................................................. 7,523
174,337,828
Liabilities:
Payable for management fee....................................... 44,000
Payable for shareholder servicing fee - (Note 2)................. 29,090
Accrued expenses................................................. 83,497
Payable for Fund shares redeemed................................. 19,982
176,569
Net Assets.......................................................$174,161,259
Net Assets Represented by:
Shares of beneficial interest, at par............................$ 27,236
Paid-in surplus.................................................. 143,703,445
Accumulated undistributed net investment income.................. 197,962
Undistributed realized gains on investments and futures.......... 106,323
Net unrealized appreciation on investments and futures........... 30,126,293
Net Assets applied to 27,235,997 shares of beneficial interest
issued and outstanding with $0.001 par value
(authorized shares unlimited)...............................$174,161,259
Unrealized Appreciation\(Depreciation)*
Gross appreciation........................................... 32,956,561
Gross depreciation........................................... (2,830,268)
Net unrealized appreciation...................................... 30,126,293
Net asset value, offering and redemption price per share
as of the close of business on December 31, 1995............. $6.39
<FN>
* Based on cost of securities for Federal Income tax purposes.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
U.S. LARGE STOCK FUND
Statement of Operations for the Year Ended December 31, 1995
<S> <C> <C>
Investment Income:
Dividends........................................................ $4,003,222
Interest......................................................... 140,275
$4,143,497
Expenses:
Investment advisory fee - (Note 2)............................... 436,134
Shareholder service fee.......................................... 280,545
Custodian fees and expenses...................................... 98,943
Professional fees................................................ 61,050
Adminstration fee - (Note 2)..................................... 48,802
Registration fees................................................ 44,000
Transfer agent fee and expenses.................................. 32,500
Amortization of organization costs............................... 15,000
Shareholder reports.............................................. 10,000
Trustees' fees and expenses...................................... 10,000
Miscellaneous.................................................... 7,690
1,044,664
Less waiver of fees by adviser................................... (21,824)
Less waiver of fees by administrator............................. (48,802)
Less expenses paid directly - (Note 5)........................... (1,636)
972,402
bNet Investment Income.......................................... 3,171,095
Net Realized Gain on Investments and Futures..................... 6,718,203
Net Change in Unrealized Gain on Investments and Futures......... 30,324,234
Net Increase in Net Assets Resulting from Operations............. $40,213,532
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
<S> <C> <C>
Year Year
Ended Ended
12/31/95 12/31/94
Operations:
Net investment income............................................ $3,171,095 $2,321,731
Net realized gain/(loss) on investments and futures.............. 6,718,203 (276,677)
Net change in unrealized appreciation/(depreciation) on
investments and futures..................................... 30,324,234 (1,653,187)
Net increase in net assets resulting from operations............. 40,213,532 391,867
Distributions to Shareholders:
From net investment income....................................... (3,253,286) (2,208,421)
From capital gains............................................... (6,190,497) (124,250)
Net decrease due to distributions................................ (9,443,783) (2,332,671)
Fund Share Transactions - Note 4
Shares sold...................................................... 53,560,522 47,319,085
Distributions reinvested......................................... 9,021,345 2,302,950
Shares redeemed.................................................. (26,039,996) (7,676,129)
Net increase from Fund share transactions........................ 36,541,871 41,945,906
Total increase in net assets..................................... 67,311,620 40,005,102
Net assets beginning of period................................... 106,849,639 66,844,537
Net assets end of period (including undistributed net investment
income of $197,962 and $148,699)............................. $174,161,259 $106,849,639
</TABLE>
See notes to financial statements
<PAGE>
U.S. LARGE STOCK FUND
Notes fo Financial Statements
NOTE 1 -- Organization and Accounting Policies: U.S. Large Stock Fund (the
"Fund") is registered under the Investment Company Act of 1940 (the " Act"),
as amended, as a diversified, open-end management company. The following is a
summary of significant accounting policies followed by the Fund in the
preparation of its financial statements. These policies are in conformity with
generally accepted accounting principles.
Portfolio Valuation: Portfolio securities are valued at the last sale price as
of the close of regular trading on the New York Stock Exchange on the day the
valuation is made. Unlisted securities and listed securities for which there
are no sales reported on the valuation date are valued at the mean between the
most recent bid and asked prices. Short-term debt securities are valued at
amortized cost, which has been determined by the Funds Board of Trustees to
represent fair value. If other securities and assets for which market
quotations are not readily available are held by the Fund, they are valued at
their fair value as determined, in good faith, by the Fund's Valuation Committee
as authorized by the Fund's Board of Trustees.
Securities Transactions and Investment Income: Securities transactions are
recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income is recognized on the
accrual basis.
Distributions to Shareholders: Distributions are recorded on the ex-dividend
date. Dividends from net investment income are declared and paid at least
annually. Distributions from capital gains are declared by December 31 of the
year in which they are earned and are paid by January 31 of the following year.
To the extent that net realized capital gains can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gains.
Federal Income Taxes: The Fund's policy is to comply with the requirements of
the Internal Revenue Code that are applicable to regulated investment companies
and to distribute all of its taxable income to its shareholders. No federal
income tax or excise tax provision is required.
Deferred Cost: Organizational and initial offering expenses paid by the Fund
are amortized on a straight-line basis over a sixty-month period.
Futures: A futures contract is an agreement between two parties to buy and sell
a security at a set price on a future date. Upon entering into such a contract,
a Fund is required to pledge to the broker an amount of cash and/or securities
equal to the minimum "initial margin" requirements of the exchange. Pursuant to
the contract, the Fund agrees to receive from, or pay to the broker, an amount
of cash equal to the daily fluctuation in value of the contract. Such a receipt
or payment is known as a "variation margin" and is recorded by the Fund as an
unrealized gain or loss. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. The Fund is
also required to fully collateralize futures contracts purchased. The Fund only
enters into futures contracts which are traded on exchanges.
Financial Risks: The Fund may enter into futures contracts to protect against
adverse movements in the price of securities in the investment portfolio.
Certain risks are associated with the use of futures. The predominant risk is
that the movement in price of the instrument underlying the future may not
correlate perfectly with the movement of the price of the asset being hedged.
Use of Estimates: Estimates and assumptions are required to be made regarding
assets, liabilities and changes in net assets resulting from operations when
financial statements are prepared. Changes in the economic environment,
financial markets and any other parameters used in determining these estimates
could cause actual results to differ from these amounts.
NOTE 2 -- Investment Advisory Fee and Other Transactions with Affiliates: An
investment advisory fee is earned by Weiss, Peck & Greer, L.L.C. ("WPG"), the
Advisor. Under the terms of the investment advisory agreement, the advisory fee
is calculated at the
<PAGE>
U.S. LARGE STOCK FUND
Notes fo Financial Statements - continued
following rates: 0.31% of the Fund's average daily net assets not exceeding
$200 million, 0.26% in excess of $200 million up to $500 million, 0.24% in
excess of $500 million up to $1 billion, 0.22% in excess of $1 billion up to
$2 billion, and 0.20% in excess of $2 billion. Such fees are paid monthly.
WPG has voluntarily agreed to limit the Fund's total operating expenses to
0.75% or less (determined by average net assets).
In addition, the Fund has entered into an Administration Agreement with WPG
whereby WPG receives a monthly fee equal to 0.09% on an annualized basis while
average daily net assets exceed $150 million, for administrative services
provided.
Reinhardt Werba Bowen Advisory Services ("RWB") receives an asset allocation fee
up to 2% annually of assets from shareholders (not a Fund expense) participating
in their Strategic Asset Money Management program. RWB will receive a fee from
the Fund for shareholder servicing functions provided, equal to 0.15% of the net
assets while net assets are less than $75 million and 0.20% thereafter. Certain
transactions and service charges may also be imposed by institutions serving as
financial intermediaries in the purchase and custody of Fund shares held. No
part of these fees is received by the Fund or the Adviser.
Certain officers and Trustees of the Fund are "affiliated persons", as defined
in the Act, of WPG.
NOTE 3 -- Securities Transactions: During the year ended December 31, 1995,
sales proceeds, cost of securities sold and purchases of securities (other than
short-term investments and options written), aggregated $37,363,104, $30,986,573
and $64,088,859, respectively. Brokerage commissions on the above transactions
amounted to $73,588, all of which was received by WPG. These amounts do not
include profits earned in connection with the execution of principal
transactions, none of which was received by WPG.
NOTE 4 -- Transactions in Shares of Beneficial Interest: Transactions in the
Fund's Shares of Beneficial Interest were as follows (000's omitted):
Year Ended December 31,
1995 1994
Shares sold 9,027 9,243
Distributions reinvested 1,414 454
Shares redeemed (4,351) (1,496)
Net increase 6,090 8,201
NOTE 5 -- On May 1, 1995, the Fund entered into an expense offset arrangement
with its custodian wherein it receives credit toward the reduction of custodian
fees whenever there are uninvested cash balances. During the year ended
December 31, 1995, the Funds' custodian fees amounted to $98,943 of which $1,636
was offset by such credits. The Fund could have invested its cash balances
elsewhere if it had not agreed to a reduction in fees under the expense offset
arrangement with the custodian.
NOTE 6 -- Reclassification of Capital Accounts: In accordance with the adoption
of Statement of Position 93-2 "Determination, Disclosure and Financial Statement
Presentation of Income, Capital Gain and Return of Capital Distributions by
Investment Companies", the Fund reclassified $74,068 from undistributed net
investment income and undistributed net realized gains to additional paid-in
surplus during the year ended 1995.
<PAGE>
<TABLE>
<CAPTION>
U.S. LARGE STOCK FUND
Financial Highlights
<S> <C> <C> <C>
Year Year Period
Ended Ended Ended
12/31/95 12/31/94 12/31/93*
Per Share Data:
Net Asset Value at Beginning of Period........... $5.05 $5.16 $5.00
Net Investment Income........................ $0.13 $0.14 $0.06
Net Realized and Unrealized Gain/(Loss)
on Investments............................ 1.58 (0.14) 0.20
Total Income from Operations..................... 1.71 0.00 0.26
Dividends from Net Investment Income......... (0.13) (0.11) (0.06)
Distributions from Capital Gains............. (0.24) 0.00 (0.04)
Total Distributions.............................. (0.37) (0.11) (0.10)
Net Asset Value End of Period................... $6.39 $5.05 $5.16
Total return......................................... 33.81% 0.06% 5.09%
Net assets at end of period (000's).................. $174,161 $106,850 $66,845
Ratios:
Ratio of Expenses to Average Net Assets.......... 0.69% # 0.75% # 0.77% #(A)
Ratio of Net Income to Average Net Assets........ 2.26% # 2.65% # 2.54% #(A)
Portfolio Turnover Rate.......................... 27.1% 36.2% 27.1% #(A)
<FN>
* From inception of Fund 6/8/93.
(A) Annualized
# The Advisor and Administrator agreed not to impose its full fee from inception
through December 31, 1995. Had the Advisor and Administrator not so agreed, the
ratio of expenses and net investment income to average net assets would have
been 0.98% and 2.33% for the period ended 12/31/93, 0.79% and 2.61% for the year
ended 12/31/94 and 0.74% and 2.21% for the year ended 12/31/95, respectively.
The custody fee earnings credit has an effect of less than 0.01% per share on
the above ratios.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
U.S. LARGE STOCK FUND
Average Annual Total Return
(Performance Graph Here)
This graph compares the Fund against the S&P 500 Index. The Value for the
Fund and the comparative Benchmark at 12/31/95 are:
U.S. LARGE STOCK $14,070
S&P 500 Index $14,736
(end of graph)
Average Annual Total Return
(for the periods ended December 31, 1995)
since
1 year inception#
U.S. LARGE 33.81% 14.24%
S&P 500 Index 37.50% 16.35%
# Commencement of operations 6/8/93
Performance represents historical data. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. The Fund's results
and the index assume the reinvestment of all capital gain distributions and
income dividends. The Fund's past performance is not indicative of future
performance and should be considered in light of the Fund's investment policy
and objectives, the characteristics and quality of its portfolio securities, and
the periods selected. The S&P 500 Stock Index is a broad based measurement of
changes in stock market conditions based on the average performance of 500
widely held common stocks.
Independent Auditors' Report
To the Shareholders and Board of Trustees of
U.S. Large Stock Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of the U.S. Large Stock Fund as of December 31,
1995, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the years in the two-year period
then ended, and the financial highlights for each of the years in the two-year
period then ended, and for the period from June 8, 1993 (commencement of
operations) to December 31, 1993. 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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 the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995, by correspondence with the custodian. 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 audits provide 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 the
U.S. Large Stock Fund as of December 31, 1995 and the results of its operations
for the year then ended, the changes in its net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years in the two-year period then ended, and for the period from June 8, 1993
(commencement of operations) to December 31, 1993, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
New York, New York
January 24, 1996
<PAGE>
REINHARDT WERBA BOWEN
1190 Saratoga Avenue
Suite 200
San Jose, CA 95129
(800) FON-SAMM
TRUSTEES
Raymond R. Herrmann, Jr.* William B. Ross*
Thomas J. Hilliard, Jr.* Harvey E. Sampson*
Lawrence J. Israel* Robert A. Straniere*
Graham E. Jones* Alan B. Werba
Paul Meek*
*Member of Audit Committee
OFFICERS
Roger J. Weiss, President, Chairman and Trustee
Jay C. Nadel, Executive Vice President and Secretary
Francis H. Powers, Executive Vice President and Treasurer
Joseph N. Pappo, Vice President
Joseph J. Reardon, Vice President
Joseph Parascondola, Assistant Vice President
INVESTMENT ADVISER
Weiss, Peck & Greer, L.L.C.
One New York Plaza
New York, NY 10004
CUSTODIAN
Boston Safe Deposit and Trust Company
One Exchange Place
Boston, MA 02109
DIVIDEND DISBURSING AND
TRANSFER AGENT
First Data Investor Services Group
P.O. Box 9037
Boston, MA 02205
LEGAL COUNSEL
Hale and Dorr
60 State Street
Boston, MA 02109
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
345 Park Avenue
New York, NY 10154
U.S. LARGE
STOCK FUND
ANNUAL REPORT
DECEMBER 31, 1995
