--------------
RWB/WPG
U.S. LARGE
STOCK FUND
--------------
ANNUAL REPORT
DECEMBER 31, 1997
<PAGE>
RWB/WPG U.S. LARGE SOTCK FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000's)
- --------- -------- -------
COMMON STOCKS (99.7%)
Basic Materials (4.9%)
24,775 Allegheny Teledyne Inc. .......$ .. 641
15,700 Crown Cork & Seal Inc. ............ 787
19,275 Dow Chemical Co. .................. 1,956
20,400 Du Pont E I De Nemours & Co........ 1,225
11,600 Fort James Corp. .................. 444
8,900 Great Lakes Chemical Corp. ........ 399
14,200 Hercules Inc. ..................... 711
41,400 Kimberly-Clark Corp. .............. 2,042
8,500 Phelps Dodge Corp. ................ 529
21,600 Praxair Inc. ...................... 972
6,500 Rohm & Haas Co. ................... 622
10,328
CONSUMER CYCLICALS (12.2%)
6,100 Armstrong World Industries Inc. ... 456
42,200 +Arrow Electronics, Inc. ........... 1,369
13,600 Black & Decker Corp. .............. 531
32,200 Chrysler Corp. .................... 1,133
9,600 Clairborne (Liz) Inc. ............. 401
14,400 CVS Corp. ......................... 923
20,300 Dayton Hudson Corp. ............... 1,370
46,000 Ford Motor Co. .................... 2,240
22,000 Gannet Inc. ....................... 1,360
14,100 Genuine Parts Co. ................. 479
7,100 Goodyear Tire & Rubber Co. ........ 452
18,300 Hasbro Inc. ....................... 576
55,700 +K Mart Stores ..................... 644
37,600 King World Productions Inc. ....... 2,171
8,100 Knight-Ridder Corp. ............... 421
22,600 Masco Corp. ....................... 1,150
39,450 Mattel Inc. ....................... 1,470
36,000 May Department Stores Co. ......... 1,897
12,400 Maytag Corp. ...................... 463
6,900 McGraw-Hill Companies Inc. ........ 511
8,900 New York Times Co. Cl A ........... 589
11,800 Paccar Inc. ....................... 619
33,700 Penney (J.C.) Co. ................. 2,033
11,400 Rite Aid Corp. .................... 669
36,102 The Limited Inc. .................. 921
25,600 +US West Media ..................... 739
10,200 VF Corp. .......................... 469
------
26,056
------
CONSUMER NON - CYCLICALS (11.5%)
40,200 American Stores Co. ............... 827
37,400 Anheuser-Busch Companies Inc. ..... 1,646
10,200 Avon Products Inc. ................ 626
44,800 Campbell Soup Co. ................. 2,604
21,600 Colgate- Palmolive Co. ............ 1,588
37,400 Conagra Inc. ...................... 1,227
11,000 CPC International Inc. ............ 1,185
11,800 General Mills Inc. ................ 845
32,350 Heinz H J Co. ..................... 1,644
NUMBER VALUE
OF SHARES SECURITY (000's)
- --------- -------- -------
20,500 Newel Co. ......................... $ 871
60,200 Olsten Corp. ...................... 903
91,500 Philip Morris Companies Inc. ...... 4,146
11,000 Pioneer Hi Bred International ..... 1,180
10,000 Ralston Purina Co. - Ralston Group 930
50,400 Unilever NV ADR ................... 3,147
50,100 Wendy's International ............. 1,206
------
24,575
------
ENERGY (9.9%)
14,000 Coastal Corp. ..................... 867
104,600 Exxon Corp. ....................... 6,400
28,850 Halliburton Co. ................... 1,498
160,400 Royal Dutch Petroleum Co ADR ...... 8,691
44,400 Schlumberger Ltd. ................. 3,574
------
21,030
------
FINANCIAL (17.2%)
40,500 Allstate Corp. .................... 3,680
11,550 Aon Corp. ......................... 677
11,500 Bankers Trust N.Y. Corp. .......... 1,293
40,300 Bear Stearns Companies Inc. ....... 1,914
25,900 Chase Manhattan Corp. ............. 2,836
13,400 Chubb Corp. ....................... 1,013
19,700 Citicorp .......................... 2,491
33,900 Fannie Mae ........................ 1,934
11,850 Fifth Third Bancorp ............... 969
33,000 First Chicago NBD ................. 2,756
49,000 First Union Corp. ................. 2,511
16,900 Golden West Financial ............. 1,653
4,300 Hartford Financial Services Group . 402
8,500 Loews Corp. ....................... 902
11,800 Marsh & McLennan Companies ........ 880
43,000 Pacific Century Financial ......... 1,064
28,600 PNC Bank .......................... 1,632
13,000 SAFECO Corp. ...................... 634
9,700 SLM Holding Corp. ................. 1,350
6,100 St Paul Companies Inc. ............ 501
11,000 Torchmark Corp. ................... 463
5,300 Transamerica Corp. ................ 564
33,900 Travelers Group Inc. .............. 1,826
19,200 UNUM Corp. ........................ 1,044
14,873 US Bancorp ........................ 1,665
------
36,654
------
HEALTH (12.6%)
50,800 American Home Products Corp. ...... 3,886
73,200 Bristol-Myers Squibb Co. .......... 6,927
33,700 Corning Inc. ...................... 1,251
85,000 Pfizer Inc. ....................... 6,338
52,800 Schering-Plough Corp. ............. 3,280
31,100 Service Corp International ........ 1,149
28,300 +Tenet Healthcare Corp. ............ 937
24,800 Warner Lambert Co. ................ 3,075
------
26,843
------
Page 2 See notes to financial statements
<PAGE>
RWB/WPG U.S. LARGE SOTCK FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000's)
- --------- -------- -------
INDUSTRIALS (3.8%)
25,300 Browning Ferris Industries Inc. ... $ 936
13,400 Cooper Industries Inc. ............ 657
32,600 Dover Corp. ....................... 1,178
32,000 Harnischfeger Industries Inc. ..... 1,130
15,900 Interpublic Group of Companies Inc. 792
31,900 Laidlaw Inc Cl B .................. 435
14,625 Parker Hannifin Corp. ............. 671
12,600 Raychem Corp. ..................... 542
9,600 Stanley Works ..................... 453
12,600 Textron Inc. ...................... 787
9,600 TRW Inc. .......................... 512
------
8,093
------
TECHNOLOGY (20.4%)
51,600 +Cadence Design Systems Inc. ....... 1,264
46,600 CBS Corp. ......................... 1,372
22,500 +Cisco Systems Inc. ................ 1,254
38,700 Computer Associates
International Inc. ............. 2,046
44,400 +Dell Computer Corp................. 3,730
10,200 Eaton Corp. ....................... 910
4,900 General Dynamics Corp. ............ 424
84,400 General Electric Co. .............. 6,193
43,300 GTE Corp. ......................... 2,262
59,200 Intel Corp. ....................... 4,159
25,300 International Business Machine Corp. 2,645
19,200 Lockheed Martin Corp. ............. 1,891
23,200 Lucent Technologies Inc. .......... 1,853
26,000 +Microsoft Corp. ................... 3,361
5,900 Northrop Corp. .................... 679
15,700 Pitney Bowes Inc. ................. 1,412
19,500 Raytheon Co. ...................... 985
45,400 Sprint Corp. ...................... 2,662
32,600 US West Inc. ...................... 1,471
38,400 Xerox Corp. ....................... 2,834
------
43,407
------
TRANSPORTATION (1.1%)
34,500 Southwest Airlines Co. ............ 849
24,900 Union Pacific Corp. ............... 1,555
------
2,404
------
UTILITIES (6.1%)
14,000 American Electric Power Co. ....... 723
11,785 CINergy Corp. ..................... 452
5,700 Columbia Gas System Inc. .......... 448
40,700 Edison International .............. 1,107
61,200 Entergy Corp. ..................... 1,832
14,200 FPL Group Inc. .................... 840
9,200 GPU Inc. .......................... 388
18,300 Houston Industries Inc. ........... 488
NUMBER VALUE
OF SHARES SECURITY (000's)
- --------- -------- -------
65,926 SBC Communications ................ $4,829
36,500 Southern New England
Telecommunications ............. 1,836
------
12,943
------
TOTAL COMMON STOCKS
(Cost $149,371) ................. 212,333
PRINCIPAL
AMOUNT
(000's)
- -------
US GOVERNMENT
OBLIGATION (0.2%)
(Cost $499)
$500 *US Treasury Bill Due 1/22/98........ 499
TOTAL INVESTMENTS (99.9%)
(Cost $149,870) ................. 212,832
OTHER ASSETS IN EXCESS
OF LIABILITIES (0.1%) ............ 119
TOTAL NET ASSETS (100.0%) .......... $212,951
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
- --------- ------------
FUTURES PURCHASED
(aggregate Futures Amount $497)
2 March S & P 500 .................... (7)
+ Non-income producing security.
* Security pledged for futures purchased.
See notes to financial statements Page 3
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES AT DECEMBER 31, 1997
ASSETS:
Investments at value (Cost $149,870,144) ..................... $212,831,683
Receivable for Fund shares sold .............................. 198,751
Dividends and interest receivable ............................ 337,377
Deferred organizational expenses (Net of accumulated
amortization of $61,407) .................................. 5,465
Prepaid expenses ............................................. 14,678
------------
213,387,954
------------
LIABILITIES:
Payable for management fee (Note 2) ........................... 45,663
Payable for shareholder servicing fee (Note 2) ................ 18,276
Due to custodian .............................................. 77,352
Payable for Fund shares redeemed .............................. 243,540
Payable for variation margin .................................. 100
Accrued expenses .............................................. 51,972
------------
436,903
------------
NET ASSETS .................................................... $ 212,951,051
=============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, at par ......................... $ 28,665
Paid-in surplus ............................................... 149,018,756
Undistributed net investment income ........................... 773,442
Undistributed realized gains on investments and futures ....... 175,889
Net unrealized appreciation on investments and futures ........ 62,954,299
------------
Net Assets applied to 28,664,370 shares of beneficial interest
with $0.001 par value (authorized shares unlimited) ... $ 212,951,051
=============
UNREALIZED APPRECIATION\(DEPRECIATION)*
Gross appreciation ......................................... 64,133,106
Gross depreciation ......................................... (1,178,807)
------------
Net unrealized appreciation ................................... 62,954,299
=============
Net asset value, offering and redemption price per share
as of the close of business on December 31, 1997 .......... $ 7.43
=============
* Based on cost of securities for Federal Income tax purposes which does not
differ from book cost.
Page 4 See notes to financial statements
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1997
INVESTMENT INCOME:
Dividends ............................. $4,035,270
Interest .............................. 55,951
---------- $4,091,221
EXPENSES:
Investment advisory fee (Note 2) ...... 539,408
Shareholder service fee (Note 2) ...... 251,360
Fund Accounting expense ............... 89,500
Professional fees ..................... 58,000
Custodian fees and expenses (Note 5) .. 43,633
Transfer agent fee and expenses ....... 36,595
Registration fees ..................... 18,000
Amortization of organizational expenses 15,000
Shareholder reports ................... 15,000
Trustees' fees and expenses ........... 9,864
Other expenses ........................ 20,435
---------
1,096,795
Less waiver of fees by Adviser (Note 2) (36,041)
Less expenses paid directly (Note 5) .. (2,633)
---------
1,058,121
-----------
NET INVESTMENT INCOME 3,033,100
NET REALIZED GAINS ON INVESTMENTS AND FUTURES 25,418,479
NET CHANGE IN UNREALIZED APPRECIATION ON
INVESTMENTS AND FUTURES 26,788,609
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $55,240,188
===========
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
1997 1996
---- ----
OPERATIONS:
<S> <C> <C>
Net investment income .......................................... $ 3,033,100 $ 3,734,543
Net realized gains on investments and futures .................. 25,418,479 25,671,355
Net change in unrealized appreciation on investments and futures 26,788,609 6,039,397
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........... 55,240,188 35,445,295
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ..................................... (2,702,229) (3,149,567)
From capital gains ............................................. (28,496,233) (22,834,359)
------------- -------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS ...................... (31,198,462) (25,983,926)
------------- -------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST - (Note 4)
Shares sold .................................................... 19,457,474 47,410,428
Dividends and Distributions reinvested ......................... 30,787,326 25,668,369
Shares redeemed ................................................ (61,560,976) (56,475,924)
------------- -------------
NET INCREASE/(DECREASE) FROM FUND SHARE TRANSACTIONS ........... (11,316,176) 16,602,873
------------- -------------
TOTAL INCREASE IN NET ASSETS ................................... 12,725,550 26,064,242
NET ASSETS BEGINNING OF YEAR ................................... 200,225,501 174,161,259
------------- -------------
NET ASSETS END OF YEAR (including undistributed net investment
income of $773,442 and $644,641) ....................... $ 212,951,051 $ 200,225,501
============= =============
</TABLE>
See notes to financial statements Page 5
<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 specific 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.
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.
Page 6
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
NOTE 2 - Investment Advisory Fee and Other Transactions with Affiliates: The
investment advisory fee is earned by Weiss, Peck & Greer, L.L.C. ("WPG"). Under
the Fund's Investment Advisory agreement, the advisory fee is calculated at the
following rates: 0.26% of the Funds average daily net assets not exceeding $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. Such
fees are paid monthly. For the period January 1, 1997 through July 17, 1997 WPG
had voluntarily agreed to limit the Fund's total operating expenses to 0.63% or
less (determined by average net assets). Effective July 18, 1997 the voluntary
expense limit became 0.42% of average net assets.
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,
1997 through July 17, 1997 RWB was entitled to receive a fee from the Fund for
shareholder servicing functions provided, equal to 0.14% of daily average net
assets. Effective July 18, 1997 the shareholder servicing fee was reduced to
0.10% of daily average 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, 1997, sales
proceeds and cost of securities purchased (other than short-term investments and
options written), amounted to $149,579,219 and $111,594,237, respectively.
Brokerage commissions on the above transactions amounted to $193,235. Of this
amount, $192,857 was 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):
YEAR ENDED
DECEMBER 31,
------------
1997 1996
---- ----
Shares sold ............. 2,574 6,976
Dividends and
distributions reinvested 4,144 3,803
Shares redeemed ......... (8,145) (7,923)
------ ------
Net increase/(decrease).. (1,427) 2,856
====== =====
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,
1997, the Fund's custodian fees amounted to $43,633 of which $2,633 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 $202,070 from undistributed net
investment income to undistributed net realized gains at December 31,1997. Net
investment income, net realized gains and net assets were not affected by this
change.
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, 1997:
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, 1997 is 100%.
Long-term capital gains distributions paid to shareholders by the Fund during
the fiscal year ended December 31, 1997 whether taken in shares or in cash is
$20,389,546.
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 7
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Year Year Year Period
Ended Ended Ended Ended Ended
12/31/97 12/31/96 12/31/95 12/31/94 12/31/93*
-------- -------- -------- -------- ---------
Per Share Data:
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period ... $ 6.65 $ 6.39 $ 5.05 $ 5.16 $ 5.00
---------- -------- --------- -------- ---------
Net Investment Income ................. $ 0.12 $ 0.13 $ 0.13 $ 0.14 $ 0.06
Net Realized and Unrealized Gain/(Loss)
on Investments ...... 1.93 1.12 1.58 (0.14) 0.20
---------- -------- --------- -------- ---------
Total Income from Operations ............. 2.05 1.25 1.71 0.00 0.26
---------- -------- --------- -------- ---------
Dividends from Net Investment Income .. (0.11) (0.12) (0.13) (0.11) (0.06)
Distributions from Capital Gains ...... (1.16) (0.87) (0.24) 0.00 (0.04)
---------- -------- --------- -------- ---------
Total Distributions ...................... (1.27) (0.99) (0.37) (0.11) (0.10)
---------- -------- --------- -------- ---------
Net Asset Value End of Period ............ $ 7.43 $ 6.65 $ 6.39 $ 5.05 $ 5.16
========== ======== ========= ======== =========
Total return ................................ 30.83% 19.33% 33.81% 0.06% 5.09%
Net assets at end of period (000's) ......... $ 212,951 $ 200,226 $ 174,161 $106,850 $ 66,845
Average commission rate per shares (B) ...... $ 0.0350 $ 0.0330 N/A N/A N/A
Ratios:
Ratio of Expenses to Average Net Assets . 0.51%+ 0.59%+ 0.69%+ 0.75%+ 0.77%+(A)
Ratio of Net Investment Income to
Average Net Assets ................... 1.46%+ 1.86%+ 2.26%+ 2.65%+ 2.54%+(A)
Portfolio Turnover Rate ................. 54.2% 59.6% 27.1% 36.2% 27.1%(A)
<FN>
* From inception of Fund on 6/8/93.
(A) Annualized
(B) As of 9/95 the SEC instituted new guidelines requiring the disclosure of
average commissions per share.
+ The Advisor agreed not to impose its full fee from inception through
December 31, 1997. 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, 0.62% and 1.83% for the year
ended 12/31/96 and 0.53% and 1.44% for the year ended 12/31/97,
respectively. The custody fee earnings credit had an effect of less than
0.01% per share on the above ratios.
</FN>
</TABLE>
Page 8 See notes to financial statements
<PAGE>
RWB/WPG U.S. Large Stock Fund
AVERAGE ANNUAL TOTAL RETURN
[Graph omitted here]
Graph depicts comparison of a $10,000 between RWB/WPG U.S. Large Stock Fund
and the S&P 500 Index for the period 6/8/93 through December 31, 1997.
US LARGE S&P 500
-------- -------
$10,000 $10,000
6/93 10,040 10,080
9/93 10,440 10,338
12/93 10,508 10,577
3/94 10,081 10,174
6/94 10,061 10,214
9/94 10,567 10,716
12/94 10,516 10,717
3/95 11,619 11,760
6/95 12,409 12,881
9/95 13,130 13,910
12/95 14,069 14,736
3/96 14,950 15,539
6/96 15,456 16,245
9/96 15,764 16,745
12/96 16,789 18,141
3/97 17,041 18,627
6/97 19,716 21,879
9/97 21,155 23,516
12/97 21,963 24,191
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(for the periods ended December 31, 1997)
Since
1 Year inception*
------ ---------
RWB/WPG U.S. Large Stock Fund ............ 30.83% 18.80%
S&P 500 Index ............................ 33.36% 21.37%
- --------------------------------------------------------------------------------
*Inception date 6/8/93.
Due to the risk averse nature of the Fund, its tilt toward value features, and
sector weightings that have differed from the benchmark, the Fund
underpperformed the S&P 500 Index in 1997. In June of 1997, while still
maintaining risk and value characteristics, the sector weightings were
reallocated so that they are now more in line with the benchmark.
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 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.
Page 9
<PAGE>
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 as of December
31, 1997, and the related statement of operations for the year then ended, the
statements 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 four-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, 1997, 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
RWB/WPG U.S. Large Stock Fund as of December 31, 1997, 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 four-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 19, 1998
Page 10
<PAGE>
RWB/WPG
U.S. LARGE STOCK FUND
REINHARDT WERBA BOWEN
1190 Saratoga Avenue
Suite 200
San Jose, CA 95129
(800) 366-7266 Ext. 124
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
