RWB/WPG
U.S. LARGE
STOCK FUND
(formerly U.S. Large Stock Fund)
ANNUAL REPORT
DECEMBER 31, 1996
<PAGE>
<TABLE>
<CAPTION>
RWB/WPG U.S. LARGE STOCK FUND
Schedule of Investments at December 31, 1996
<C> <S> <C>
Number Value
of Shares Security (000's)
- ---------- ------- --------
COMMON STOCKS (98.8%)
Capital Goods (8.2%)
13,600 Boeing Co............................... $1,447
21,300 McDonnell Douglas Corp ................. 1,363
60,300 Westinghouse Electric Corp ............. 1,198
22,700 Alco Standard Corp ..................... 1,172
20,800 Raytheon Co ............................ 1,001
13,800 Honeywell Inc. ......................... 907
11,700 Fluor Corp ............................. 734
72,100 +Novell Inc ............................. 683
11,500 Tyco International Ltd ................. 608
11,100 Dover Corp ............................. 558
9,300 Pitney Bowes Inc. ...................... 507
5,700 Raychem Corp ........................... 457
10,650 Parker Hannifin Corp ................... 413
18,700 +Apple Computer Inc ..................... 390
14,000 +Advanced Micro Devices Inc ............. 360
3,900 Northrop Corp .......................... 323
4,500 General Dynamics ....................... 317
7,050 Owens Corning .......................... 300
3,600 Grainger WW Inc ........................ 289
7,066 +Lucas Varity PLC ADR ................... 269
6,200 General Signal Corp .................... 265
5,400 Harnischfeger Industries Inc. .......... 260
7,200 Avery Dennison Corp .................... 255
3,700 Harris Corp............................. 254
7,200 Micron Technology Inc .................. 210
6,000 Great Atlantic & Pacific Tea ........... 191
2,700 FMC Corp ............................... 189
27,000 +Unisys Corp ............................ 182
7,300 Moore Corp Ltd ......................... 149
3,800 Trinova Corp ........................... 138
4,000 Harland John H. Co. .................... 132
6,400 EG&G Inc ............................... 129
2,900 Thomas & Betts Corp .................... 129
5,300 Cincinnati Milacron Inc ................ 116
12,540 +Navistar International Corp ............ 114
2,500 Briggs & Stratton Corp ................. 110
2,200 Timken Co. ............................. 101
2,200 Potlatch Corp .......................... 95
9,100 +Intergraph Corp ........................ 93
5,200 Giddings & Lewis Inc. .................. 67
704 Silicon Graphics Inc.................... 18
-------
16,493
-------
Consumer Durables (3.7%)
34,750 Mattel Inc ............................ 964
9,900 +3Com Corp .............................. 726
20,000 Masco Corp ............................. 720
9,400 Eaton Corp ............................. 655
12,500 Whirlpool Corp ......................... 583
10,400 TRW Inc. ............................... 515
10,000 Genuine Parts Co ....................... 446
13,200 Black & Decker Corp. ................... 398
Number Value
of Shares Security (000's)
- --------- ------- ---------
9,550 Bausch & Lomb Inc ...................... $339
16,300 Maytag Corp ............................ 322
4,200 Armstrong World Industries Inc. ........ 292
14,000 Cooper Tire & Rubber Co ................ 276
8,600 Echlin Inc. ............................ 272
5,300 Cummins Engine Inc ..................... 244
8,800 Stanley Works .......................... 238
3,900 BF Goodrich Co.......................... 158
4,350 Snap-On Inc ............................ 155
3,200 Outboard Marine Inc. ................... 53
-------
7,356
-------
Consumer Miscellaneous (0.5%)
34,200 Service Corp International ............. 957
5,033 +ACNielsen Corp ......................... 76
-------
1,033
-------
Consumer Non-Durables (35.1%)
49,800 Pfizer Inc ............................. 4,127
83,650 Columbia Healthcare Corp ............... 3,409
31,200 Bristol-Myers Squibb Co. ............... 3,393
76,865 Pharmacia & Upjohn Inc. ................ 3,046
37,200 Lilly Eli & Co ......................... 2,716
43,600 American Home Products Corp. ........... 2,556
31,500 Eastman Kodak Co ....................... 2,528
11,000 Unilever NV ADR ........................ 1,928
50,289 +Viacom Inc. Cl B ....................... 1,754
26,400 Schering-Plough Corp. .................. 1,709
25,800 Kellogg Co ............................. 1,693
34,400 May Department Stores Co ............... 1,608
42,700 Albertsons Inc ......................... 1,521
31,200 Penney (J.C.) Co........................ 1,521
20,100 Warner Lambert Co ...................... 1,507
64,229 Archer Daniels Midland Co .............. 1,413
35,300 Anheuser- Busch Cos Inc. ............... 1,412
23,300 Nike Inc. Cl B ......................... 1,392
42,250 Gap Inc. ............................... 1,273
26,600 Dayton Hudson Corp ..................... 1,044
27,650 Heinz H J Co ........................... 995
29,350 UST Inc. ............................... 950
10,300 Colgate- Palmolive Co .................. 950
12,900 Ralston Purina Co ...................... 947
15,500 +Boston Scientific Corp ................. 930
20,800 American Stores Co ..................... 850
11,000 Gannet Inc ............................. 824
16,500 Conagra Inc ............................ 821
44,402 The Limited Inc ........................ 816
10,100 CPC International Inc. ................. 783
11,800 General Mills Inc ...................... 748
16,000 +Kroger Co .............................. 744
69,700 +K mart Stores Corp ..................... 723
18,500 Quaker Oats Co ......................... 705
9,900 Pioneer Hi Bred International .......... 693
29,800 Tenet Healthcare Corp .................. 652
See notes to financial statements
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
Schedule of Investments at December 31, 1996
Number Value
of Shares Security (000's)
- --------- -------- -------
20,600 Dillard Department Stores Inc .......... $636
9,700 Avon Products Inc ...................... 554
11,800 Tandy Corp ............................. 519
15,100 Cognizant Corp ......................... 498
14,200 +Federated Department Stores
Inc................................. 485
10,800 Becton Dickinson & Co. ................. 468
12,200 New York Times Co Cl A ................. 464
9,600 Harcourt General Inc .................. 443
11,300 Hasbro Inc ............................. 439
9,200 Mallinckrodt Inc. ...................... 406
10,900 Allergan Inc. .......................... 388
12,200 Winn Dixie Stores ...................... 386
8,100 TJX Cos Inc ............................ 384
8,900 +St. Jude Medical Inc. .................. 379
8,200 McGraw-Hill Cos Inc .................... 378
9,000 +CVS Corp ............................... 371
7,900 Great Lakes Chemical Corp. ............. 369
9,500 Liz Claiborne Inc. ..................... 367
16,300 +Woolworth Corp ......................... 357
3,500 Clorox Co. ............................. 351
8,800 Rite Aid Corp. ......................... 350
4,400 Tribune Co. ............................ 347
7,900 Hershey Foods Corp ..................... 346
3,000 Philip Morris Cos. ..................... 340
7,900 Reebok International Ltd ............... 332
6,600 Mercantile Stores Inc .................. 326
12,000 +ALZA Corp .............................. 311
9,000 Giant Food Inc Cl A .................... 311
7,100 Polaroid Corp .......................... 309
4,500 VF Corp ................................ 304
7,500 Knight- Ridder Inc ..................... 287
7,400 Fruit of the Loom Inc .................. 280
9,500 American Greetings Corp Cl A ........... 270
6,700 United States Surgical Corp ............ 264
8,300 Bard (CR) Inc .......................... 232
6,300 +King World Productions Inc ............. 232
14,600 Biomet Inc. ............................ 221
5,900 Supervalue Inc. ........................ 167
13,100 +Beverly Enterprises Inc................. 167
4,400 National Services Industries Inc ....... 164
6,172 Jostens Inc ............................ 130
2,800 Springs Industries Inc ................. 120
4,500 Hilton Hotels Corp ..................... 117
4,400 Ball Corp .............................. 114
3,400 Russell Corp ........................... 101
5,100 Coors (Adolph) Co Cl B ................. 97
2,000 Alberto Culver Co. ..................... 96
18,900 +Charming Shoppes Inc ................... 96
5,100 Fleming Cos Inc ........................ 88
2,895 +Footstar Inc ........................... 72
1,400 Longs Drug Stores Corp ................. 69
7,000 Transitional Hospitals Corp ............ 67
8,000 +Shoney's Inc ........................... 56
5,600 Stride Rite Corp ....................... 56
Number Value
of Shares Security (000's)
- --------- -------- --------
2,700 Luby's Cafeterias Inc. ................. $54
4,800 +Ryan's Family Steak Houses Inc ......... 33
1,700 Brown Group Inc ........................ 31
-------
70,280
-------
Energy (18.7%)
87,200 Exxon Corp ............................. 8,546
40,100 Royal Dutch Petroleum Co ADR ........... 6,847
30,100 Mobil Corp. ............................ 3,680
36,400 Amoco Corp ............................. 2,939
27,900 Schlumberger Ltd ....................... 2,786
18,300 Texaco Inc ............................. 1,796
35,200 Phillips Petroleum Co. ................. 1,558
11,200 Atlantic Richfield Co. ................. 1,485
48,800 Occidental Petroleum Corp .............. 1,141
15,325 Halliburton Co ......................... 923
37,400 USX-Marathon Group ..................... 893
23,800 Dresser Industries Inc ................. 738
13,400 Burlington Resources Inc ............... 675
17,300 +Baker Hughes Inc........................ 597
11,385 CINergy Corp. .......................... 380
13,600 Sun Co ................................. 331
11,600 +Oryx Energy Co ......................... 287
6,726 Williams Cos Inc ....................... 252
3,500 Kerr McGee Corp ........................ 252
4,100 Louisiana Land & Exploration
Co.................................. 220
4,900 Ashland Inc ............................ 215
8,500 +Rowan Cos .............................. 192
300 Pennzoil Co. ........................... 170
10,000 McDermott International Inc ............ 166
10,800 +Santa Fe Energy Resources .............. 150
2,500 Helmerich & Payne Inc................... 130
1,100 NACCO Industries Inc Cl A .............. 59
1,600 Eastern Enterprises .................... 57
-------
37,465
-------
Financial (5.2%)
47,400 First Data Corp ........................ 1,730
5,900 General Re Corp ........................ 931
8,600 Loews Corp ............................. 811
12,400 Chubb Corp ............................. 666
14,400 National City Corp ..................... 646
8,800 UNUM Corp .............................. 636
8,300 Boatmen's Bancshares Inc ............... 535
5,000 Marsh & McLennan Cos ................... 520
7,500 Aon Corp................................ 466
6,800 Fifth Third Bancorp .................... 427
9,100 U.S. Bancorp ........................... 409
6,100 St Paul Cos. Inc. ...................... 358
4,310 Aetna Inc .............................. 345
5,600 Sherwin-Williams Co. ................... 314
5,450 Jefferson- Pilot Corp .................. 309
14,500 USF&G Corp ............................. 303
3,600 Transamerica Corp ...................... 285
See notes to financial statements
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
Schedule of Investments at December 31, 1996
Number Value
of Shares Security (000's)
- -------- -------- --------
3,400 Republic NY Corp ....................... $277
4,100 Torchmark Corp ......................... 207
6,000 Crane Co ............................... 174
2,650 US Life Corp ........................... 88
-------
10,437
-------
Intermediate Goods & Services (14.9%)
73,200 WMX Technologies, Inc. ................. 2,388
28,300 Minnesota Mining &
Manufacturing Co...................... 2,345
19,200 Kimberly-Clark Corp .................... 1,829
20,675 Dow Chemical Co ........................ 1,620
55,800 Barrick Gold Corp ...................... 1,597
24,700 Aluminum Co of America ................. 1,575
30,050 Corning Inc ............................ 1,390
33,700 Browning Ferris Industries Inc. ........ 885
16,100 Crown Cork & Seal Inc .................. 875
40,100 Placer Dome Inc ADR .................... 872
18,790 Newmont Mining Corp .................... 841
13,500 PPG Industries Inc. .................... 758
13,500 W.R. Grace & Co ........................ 699
9,700 Phelps Dodge Corp ...................... 655
12,700 Nucor Corp ............................. 648
13,800 Champion International Corp. ........... 597
14,181 International Paper Co. ................ 573
11,000 Interpublic Group of Cos Inc ........... 522
15,900 Inco Ltd ............................... 507
25,300 Engelhard Corp ......................... 484
8,500 Reynolds Metals Co ..................... 479
5,800 Rohm & Haas Co ......................... 473
9,800 International Flavors &
Fragrances inc........................ 441
6,500 Sigma Aldrich Corp ..................... 406
28,300 Homestake Mining Co .................... 403
11,700 Dow Jones & Co Inc ..................... 396
12,400 USX-U.S. Steel Group ................... 389
15,100 Dun & Bradstreet Corp .................. 359
12,050 Westvaco Corp........................... 346
11,546 +Fresenius Medical Care ADR ............. 325
27,500 Laidlaw Inc Cl B ....................... 316
13,475 Allegheny Teledyne Inc ................. 310
9,200 James River Corp of Virginia ........... 305
13,000 Cyprus Amax Minerals Co. ............... 304
4,900 Mead Corp .............................. 285
8,600 Deluxe Corp ............................ 282
5,700 Union Camp Corp ........................ 272
12,700 Worthington Industries Inc.. ........... 230
23,900 +Bethlehem Steel Corp. .................. 215
14,300 Stone Container Corp ................... 213
5,600 Ecolab Inc ............................. 211
5,800 Nalco Chemical Co ...................... 209
4,200 Shared Medical Systems Corp ............ 207
30,600 Echo Bay Mines Ltd ..................... 203
8,300 Inland Steel Industries Inc ............ 166
Number Value
of Shares Security (000's)
7,100 Ogden Corp ............................. $133
7,400 Safety Kleen Corp ...................... 121
15,900 +Armco Inc .............................. 66
-------
29,725
-------
Miscellaneous Industrials (0.6%)
6,300 Textron Inc ............................ 594
6,800 Millipore Corp ......................... 281
12,800 Viad Corp .............................. 211
13,200 Dial Corp .............................. 195
-------
1,281
-------
Public Utilities (9.6%)
68,400 Sprint Corp ............................ 2,727
32,300 Enron Corp ............................. 1,393
59,400 Southern Co ............................ 1,344
40,800 US West Inc ............................ 1,316
17,700 Duke Power Co .......................... 823
18,500 Texas Utilities Co ..................... 754
37,400 Edison International ................... 743
34,100 Pacific Gas & Electric Co. ............. 716
14,100 FPL Group Inc. ......................... 649
12,800 Coastal Corp ........................... 626
14,400 American Electric Power Co ............. 592
14,200 Dominion Resources Inc.................. 547
10,200 Sonat Inc. ............................. 525
18,100 Entergy Corp ........................... 502
18,100 Unicom Corp ............................ 491
21,600 Houston Industries Inc. ................ 489
18,600 Central & South West Corp .............. 477
22,000 PacifiCorp ............................. 451
6,800 Consolidated National Gas Co ........... 376
11,400 DTE Energy Co........................... 369
5,800 Columbia Gas System Inc ................ 369
10,400 GPU Inc ................................ 350
10,700 Pacific Enterprises .................... 325
8,200 Union Electric Co ...................... 316
12,900 P P & L Resources Inc .................. 297
12,500 Ohio Edison Co ......................... 284
5,800 Northern States Power Co................ 266
6,700 Bemis Inc .............................. 247
12,900 Noram Energy Corp. ..................... 198
8,400 ENSERCH Corp ........................... 193
18,000 +Niagara Mohawk Power Co. ............... 178
3,200 Nicor Inc. ............................. 114
3,800 Oneok Inc. ............................. 114
4,400 PECO Energy Co ......................... 111
-------
19,272
-------
Transportation (2.3%)
14,800 Burlington Northern Santa Fe
Corp................................ 1,278
16,300 Union Pacific Corp ..................... 980
7,900 Conrail Inc. ........................... 787
See notes to financial statements
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
Schedule of Investments at December 31, 1996
Number Value
of Shares Security (000's)
- --------- -------- ---------
13,805 Union Pacific Resources Group .......... $404
15,200 Whitman Corp ........................... 348
7,800 Ryder Systems Inc ...................... 219
10,100 Caliber Systems Inc .................... 194
7,000 +USAir Group Inc ........................ 164
6,400 Consolidated Freightways Inc ........... 142
3,600 +Yellow Corp............................. 52
3,200 +Consolidated Freightways Corp .......... 28
-------
4,596
-------
Total Common Stocks
(Cost $161,768)....................... 197,938
-------
CONVERTIBLE PREFERRED
STOCK (0.1%)
(Cost $ 100)
Financial (0.1%)
1,537 Aetna Inc Class C 6.25% ................ 122
-------
Principal
Amount
(000's)
- ----------
U.S. Goverment
Securities (0.8%)
(Cost $1,623)
$450 *U.S. Treasury Bill Due 4/17/97 ......... 444
1,200 *U.S. Treasury Bill Due 5/1/97 .......... 1,180
-------
1,624
-------
Total Investments (99.7%)
(Cost $ 163,491) ..................... 199,684
Other Assets in Excess
of Liabilities (0.3%) ................ 542
-------
Total Net Assets (100%) ................ $200,226
========
Number of Unrealized
Contracts Depreciation
- --------- FUTURES PURCHASED -------------
(Aggregate Futures Amount $1,489)
4 March S&P 500 Futures .................. (27)
-------
<FN>
+ Non-income producing security.
* Security pledged for futures purchased.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
RWB/WPG U.S. Large Stock Fund
Statement of Assets and Liabilities at December 31, 1996
<S> <C>
Assets:
Investments at value (Cost $163,491,487)...................................$ 199,684,308
Cash....................................................................... 25,902
Receivable for Fund shares sold............................................ 507,276
Dividends and interest receivable.......................................... 286,030
Deferred organizational expenses (Net of accumulated
amortization of $46,407................................................. 20,465
Prepaid expenses........................................................... 9,914
200,533,895
Liabilities:
Payable for management fee - Note 2 ....................................... 44,647
Payable for shareholder servicing fee - Note 2............................. 24,040
Payable for Fund shares redeemed........................................... 155,978
Payable for variation margin............................................... 25,623
Accrued expenses........................................................... 58,106
308,394
Net Assets.................................................................$ 200,225,501
Net Assets Represented by:
Shares of beneficial interest, at par......................................$ 30,092
Paid-in surplus............................................................ 160,333,505
Undistributed net investment income........................................ 644,641
Undistributed realized gains on investments and futures.................... 3,051,573
Net unrealized appreciation on investments and futures..................... 36,165,690
Net Assets applied to 30,091,828 shares of beneficial interest
issued and outstanding with $0.001 par value (authorized
shares unlimited).......................................................$ 200,225,501
Unrealized Appreciation\(Depreciation)*
Gross unrealized appreciation.......................................... 39,385,140
Gross unrealized depreciation.......................................... (3,219,450)
Net unrealized appreciation................................................ 36,165,690
Net asset value, offering and redemption price per share
as of the close of business on December 31, 1996....................... $6.65
<FN>
* Based on cost of securities for Federal Income tax purposes which does not
differ from book cost.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
RWB/WPG U.S. Large Stock Fund
Statement of Operations for the Year Ended December 31, 1996
<S> <C> <C>
Investment Income:
Dividends.................................................... $4,748,813
Interest..................................................... 178,965
---------
$4,927,778
Expenses:
Investment advisory fees - Note 2............................ 545,737
Shareholder service fees - Note 2............................ 309,492
Fund Accounting fees......................................... 97,000
Professional fees............................................ 69,286
Custodian fees and expenses.................................. 43,090
Administration fees - Note 2................................. 42,225
Transfer agent fees and expenses............................. 40,200
Registration fees............................................ 31,500
Shareholder reports.......................................... 18,500
Amortization of organizational expenses...................... 15,000
Trustees' fees and expenses.................................. 13,943
Miscellaneous................................................ 15,494
---------
1,241,467
Less waiver of fees by Adviser - Note 2...................... (1,440)
Less waiver of fees by Administrator - Note 2................ (42,225)
Less expenses paid directly.................................. (4,567)
1,193,235
---------
Net Investment Income...................................... 3,734,543
Net Realized Gain on Investments and Futures................. 25,671,355
Net Change in Unrealized Appreciation on Investments and Futu 6,039,397
----------
Net Increase in Net Assets Resulting from Operations......... $35,445,295
===========
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Years Ended December 31, 1996 and 1995
<S> <C> <C>
1996 1995
---- ----
Operations:
Net investment income............................................. $3,734,543 $3,171,095
Net realized gains on investments and futures..................... 25,671,355 6,718,203
Net change in unrealized appreciation on investments and futures.. 6,039,397 30,324,234
---------- ----------
Net increase in net assets resulting from operations.............. 35,445,295 40,213,532
Distributions to Shareholders:
From net investment income........................................ (3,149,567) (3,253,286)
From capital gains................................................ (22,834,359) (6,190,497)
Decrease in net assets from distributions......................... (25,983,926) (9,443,783)
Transactions in Shares of Beneficial Interest - Note 4
Shares sold....................................................... 47,410,428 53,560,522
Distributions reinvested.......................................... 25,668,369 9,021,345
Shares redeemed................................................... (56,475,924) (26,039,996)
---------- ----------
Net increase from Fund share transactions......................... 16,602,873 36,541,871
---------- ----------
Total Increase in Net Assets...................................... 26,064,242 67,311,620
Net assets beginning of year...................................... 174,161,259 106,849,639
Net assets end of year (including undistributed net investment
income of $644,641 and $197,962).............................. $200,225,501 $174,161,259
=========== ============
</TABLE>
See notes to financial statements
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
Notes to Financial Statements
NOTE 1 - Organization and Accounting Policies: RWB/WPG U.S. Large Stock Fund
(formerly the 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 listed or admitted to trading on a
national securities exchange are valued at the last sale price, on such
exchange, 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 Fund's 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 utilizing the identification method. 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. The federal income tax basis of
investments approximates cost. Organizational Expenses: Organizational and
initial offering expenses paid by the Fund are amortized on a straight-line
method over a sixty-month period.
Organizational Expenses: Organizational and initial offering expenses by the
Fund are amortized on a straight-line method 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 asumptions 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: The
investment advisory fee is earned by Weiss, Peck & Greer, L.L.C. ("WPG"). The
terms of the investment advisory agreement were changed on April 1, 1996. For
the period January 1, 1996 through March 31, 1996 the advisory fee schedule was
as follows: 0.31% of the Funds 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% of assets in excess of $1 billion up to $2
billion and 0.20% in excess of $2 billion. On April 1, 1996, the advisory fee
rate for the
<PAGE>
first $500 million changed to 0.26% of average net assets. All other rates
remained the same. Such fees are paid monthly. WPG has voluntarily
agreed to limit the Fund's total operating expenses to 0.63% or less as of April
1, 1996 (determined by average net assets).
In addition, the Fund has entered into an Administrative Agreement with WPG. For
the period January 1, 1996 through March 31, 1996, WPG was entitled to receive a
monthly fee equal to 0.09% on an annualized basis while average net assets
exceeded $150 million for administrative services provided. For these three
months WPG has voluntarily agreed to waive this fee which amounted to $42,225.
As of April 1, 1996, WPG is not entitled to receive a fee 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. For the period January 1,
1996 through March 31, 1996 RWB was entitled to receive a fee from the Fund for
shareholder servicing functions provided, equal to 0.15% of the net assets while
assets are less than $75 million and 0.20% of net assets thereafter. As of April
1, 1996 RWB is entitled to a fee equal to 0.14% of net assets. 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, 1996, sales
proceeds and cost of securities purchased (other than short-term investments and
options written), amounted to $119,291,705 and $118,011,207, respectively.
Brokerage commissions on the above transactions amounted to $171,866, all of
which were received by WPG. These amounts do not include profits earned in
connection with the execution of principal transactions, none of which were
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):
<TABLE>
<S> <C> <C>
Years Ended
December 31,
-----------
1996 1995
---- ----
Shares sold......................... 6,976 9,027
Distributions reinvested............ 3,803 1,414
Shares redeemed .................... (7,923) (4,351)
Net increase........................ 2,856 6,090
</TABLE>
Note 5 - The Fund has 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,
1996, the Fund's custodian fees amounted to $43,090 of which $4,567 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
$138,297 from undistributed net investment income to undistributed net realized
gains and additional paid-in surplus at December 31,1996.
Note 7 - Federal Income Tax Status of
Dividends - (Unaudited)
The following tax information represents the designation of various tax benefits
relating to the fiscal year ended December 31, 1996:
The percentage of investment company taxable income eligible for the dividends
received deduction available for certain corporate shareholders with respect to
the fiscal year ended December 31, 1996 is 100%.
Long-term capital gains distributions paid to shareholders by the Fund during
the fiscal year ended December 31, 1996 whether taken in shares or in cash is
$19,684,792.
The above figures may differ from those cited elsewhere in the report due to
differences in the calculations of income and capital gains for Securities and
Exchange Commission (financial reporting) purposes and Internal Revenue Service
(tax) purposes.
<PAGE>
<TABLE>
<CAPTION>
RWB/WPG U.S. LARGE STOCK FUND
FINANCIAL HIGHLIGHTS
<S> <C> <C> <C> <C>
Year Year Year Period
Ended Ended Ended Ended
12/31/96 12/31/95 12/31/94 12/31/93*
-------- -------- -------- --------
Per Share Data:
Net Asset Value at Beginning of Period................................... $6.39 $5.05 $5.16 $5.00
----- ------- ------- ------
Net Investment Income................................................ $0.13 $0.13 $0.14 $0.06
Net Realized and Unrealized Gain/(Loss) on Investments............... 1.12 1.58 (0.14) 0.20
----- ------- ------- ------
Total Income from Operations............................................. 1.25 1.71 0.00 0.26
----- ------- ------- ------
Dividends from Net Investment Income................................. (0.12) (0.13) (0.11) (0.06)
Distributions from Capital Gains..................................... (0.87) (0.24) 0.00 (0.04)
----- ------- ------- ------
Total Distributions...................................................... (0.99) (0.37) (0.11) (0.10)
----- ------- ------- ------
Net Asset Value End of Period........................................... $6.65 $6.39 $5.05 $5.16
===== ======= ======= ======
Total return................................................................. 19.33% 33.81% 0.06% 5.09%
Net assets at end of period (000's).......................................... $200,226 $174,161 $106,850 $66,845
Average commision per share.................................................. $0.033 N/A N/A N/A
Ratios:
Ratio of Expenses to Average Net Assets.................................. 0.59%+ 0.69%+ 0.75%+ 0.77%+(A)
Ratio of Net Income to Average Net Assets................................ 1.86%+ 2.26%+ 2.65%+ 2.54%+(A)
Portfolio Turnover Rate.................................................. 59.6% 27.1% 36.2% 27.1%(A)
<FN>
* From inception of Fund 6/8/93.
(A) Annualized
+ The Advisor agreed not to impose its full fee from inception through December
31, 1996. Had the |Advisor 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, 0.74% and
2.21% for the year ended 12/31/95 and 0.62% and 1.83% for the year ended
12/31/96, respectively. The custody fee earnings credit fee has an effect of
less than 0.01% per share on the above ratios.
</FN>
</TABLE>
<PAGE>
The year's extended and unusually powerful run in the market, coming at the end
of a long economic cycle, was an extremely inhospitable environment for the
Fund. The strongly risk averse nature of the Fund caused it to lag its benchmark
during this extended run. As we move into 1997, the focus of the strategy will
remain risk control, and the portfolio will maintain its positioning for a
short, or extended correction in the market.
<TABLE>
<S> <C> <C>
Average Annual Total Return
(for the periods ended December 31, 1996)
since
1 year inception+
----- ---------
RWB/WPG U.S. LARGE.......... 19.33% 15.64%
S&P 500 Index............... 22.96% 18.17%
</TABLE>
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
RWB/WPG U.S. Large Stock Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of the RWB/WPG U.S. Large Stock Fund (formerly the
U.S. Large Stock Fund) as of December 31, 1996, 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 three-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, 1996, by correspondence with the custodian and other
appropriate audit procedures. 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
RWB/WPG U.S. Large Stock Fund as of December 31, 1996 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 three-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.
New York, New York KPMG Peat Marwick LLP
January 15, 1997
<PAGE>
RWB/WPG
U.S. LARGE STOCK FUND
REINHARDT WERBA BOWEN
1190 Saratoga Avenue
Suite 200
San Jose, CA 95129
(800) FON-SAMM
TRUSTEES
Raymond R. Herrmann, Jr.* William B. Ross*
Lawrence J. Israel* Harvey E. Sampson*
Graham E. Jones* Robert A. Straniere*
Paul Meek* Alan B. Werba
*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
Daniel Cardell, 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
4400 Computer Drive
Westboro, MA 01581-5120
LEGAL COUNSEL
Hale and Dorr
60 State Street
Boston, MA 02109
INDEPENDENT AUDITORS KPMG Peat Marwick LLP 345 Park Avenue New York, NY 10154
