--------------
RWB/WPG
U.S. LARGE
STOCK FUND
--------------
ANNUAL REPORT
DECEMBER 31, 1999
<PAGE>
<TABLE>
<CAPTION>
RWB/WPG U.S. LARGE STOCK FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1999
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
COMMON STOCKS (96.4%)
BASIC MATERIALS (3.3%)
<C> <S> <C>
7,600 Kimberly-Clark Corp. .............................$496
--------------
CONSUMER CYCLICALS (4.7%)
6,000 Ford Motor Co. ....................................321
3,550 Gannet Inc ........................................290
2,200 Maytag Corp .......................................106
--------------
717
--------------
CONSUMER NON CYCLICALS (7.1%)
17,300 Claires Stores Inc.................................387
10,000 General Mills Inc .................................357
14,200 Philip Morris Companies Inc. ......................329
--------------
1,073
--------------
CONSUMER SERVICES (6.3%)
10,200 Intimate Brands Inc ...............................440
5,000 Sprint PCS Group ..................................512
--------------
952
--------------
ENERGY (5.5%)
5,700 Exxon Mobil Corp...................................459
6,200 Royal Dutch Petroleum ADR .........................375
--------------
834
--------------
FINANCE (12.2%)
6,530 Bear Stearns Companies Inc. .......................279
3,700 Federal National Mortgage
Association...................... 231
8,300 Finova Group Inc...................................295
11,500 First Union Corp...................................377
9,627 Fleet Boston Financial Corp........................335
6,800 The PMI Group Inc .................................332
---------------
1,849
---------------
HEALTH CARE (9.7%)
8,000 Bristol-Myers Squibb Co. ..........................513
13,000 Schering-Plough Corp. .............................548
5,000 Warner Lambert Co .................................410
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1,471
---------------
INDUSTRIAL (8.3%)
5,400 General Electric ..................................836
7,400 Interpublic Group of
Companies Inc. ................................427
--------------
1,263
--------------
<PAGE>
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
TECHNOLOGY (34.6%)
10,200 Dell Computer Corp ................................520
5,700 First Data Corp ...................................281
6,500 Honeywell Inc. ....................................375
5,700 Intel Corp ........................................469
6,800 International Business
Machines Corp .................................734
6,000 Lucent Technologies ...............................449
7,400 * Microsoft Corp. ...................................864
3,300 Oracle Systems ....................................370
7,000 * Tellabs Inc........................................449
5,299 US West Inc. ......................................382
7,800 Xilinx Inc ........................................355
--------------
5,248
---------------
UTILITIES (4.7%)
5,000 CBS Corporation....................................320
8,100 SBC Communications ................................395
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715
---------------
TOTAL COMMON STOCK
(Cost 7,649)..................... 14,618
---------------
PRINCIPAL
AMOUNT
(000'S)
- -------
EURODOLLAR DEPOSIT (3.5%)
(Cost $540)
540 Societe Generale
Bank 3.000% Due 1/3/00.............. 540
---------------
TOTAL INVESTMENTS (99.9%)
(Cost $8,189).................... 15,158
OTHER ASSETS IN EXCESS
OF LIABILITIES (0.1%).................... 8
---------------
TOTAL NET ASSETS (100.0%).......................$15,166
===============
<FN>
*Non-income producing security.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RWB/WPG U.S. LARGE STOCK FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES AT DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments at value (Cost $8,188,870)................................$15,157,735
Cash........................................................................9,832
Receivable from Advisor....................................................27,257
Dividends and interest receivable..........................................44,645
----------
15,239,469
----------
LIABILITIES:
Shareholder service fee payable Note 2......................................1,353
Distributions payable.......................................................7,402
Accrued expenses...........................................................65,049
----------
73,804
----------
NET ASSETS............................................................$15,165,665
==========
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, at par.................................$.....1,955
Paid-in surplus...........................................................744,704
Undistributed net investment income.....................................1,641,517
Undistributed realized gains on investments and futures.................5,808,624
Net unrealized appreciation on investments and futures..................6,968,865
----------
Net Assets applied to 1,954,745 shares of beneficial interest
with $0.001 par value (authorized shares unlimited)...............$15,165,665
==========
UNREALIZED APPRECIATION\(DEPRECIATION)*
Gross appreciation................................................$.7,006,262
Gross depreciation....................................................(37,397
----------
Net unrealized appreciation...........................................$.6,968,865
==========
Net asset value, offering and redemption price per share
as of the close of business on December 31, 1999.......................$7.76
==========
<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, 1999
<S> <C> <C>
INVESTMENT INCOME:
Dividends...................................................$2,245,753
Interest.......................................................150,849
Other Income....................................................10,084
------------
$2,406,686
EXPENSES:
Investment advisory fee (Note 2)...............................376,979
Shareholder service fee (Note 2)...............................143,916
Fund Accounting expense.................................... 72,644
Professional fees..............................................143,771
Custodian fees and expenses (Note 5)............................45,396
Transfer agent fee and expenses............................ 37,107
Registration fees...............................................15,440
Shareholder reports.............................................14,136
Trustees' fees and expenses......................................5,581
Other expenses..................................................14,311
------------
869,281
Less waiver of fees by advisor (Note 2).......................(193,659)
Less expenses paid indirectly (Note 5)..........................(1,929)
------------
673,693
-----------------------
NET INVESTMENT INCOME...................................... 1,732,993
NET REALIZED GAINS ON INVESTMENTS AND FUTURES.............. 78,855,028
NET CHANGE IN UNREALIZED APPRECIATION ON
INVESTMENTS AND FUTURES................................. (66,350,582)
-----------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....... $14,237,439
=======================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998
1999 1988
---- ----
OPERATIONS:
<S> <C> <C>
Net investment income...................................................$1,732,993 $2,335,250
Net realized gains on investments and futures......................... 78,855,028 30,219,004
Net change in unrealized appreciation on investments and futures.......(66,350,582) 10,365,148
------------- -----------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... 14,237,439 42,919,402
------------- -----------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income................................................(554,529) (2,645,642)
From capital gains......................................................(1,016,636) (29,712,590)
------------- -----------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS............................. (1,571,165) (32,358,232)
------------- -----------------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST - NOTE 4
Shares sold..............................................................5,840,512 12,904,570
Dividends and distributions reinvested...................................1,416,530 31,751,512
Shares redeemed.......................................................(191,653,919) (81,272,035)
------------- -----------------------
NET DECREASE FROM FUND SHARE TRANSACTIONS.............................(184,396,877) (36,615,953)
------------- -----------------------
TOTAL (DECREASE) IN NET ASSETS........................................(171,730,603) (26,054,783)
NET ASSETS BEGINNING OF YEAR.......................................... 186,896,268 212,951,051
------------- -----------------------
NET ASSETS END OF YEAR (including undistributed net
investment income of $1,641,517 and $463,050)......................$15,165,665 $186,896,268
============= =======================
</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's) 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.
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
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
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: 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. WPG has voluntarily agreed to limit the Fund's total
operating expenses to 0.42% (determined by 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. RWB receives a fee from the
Fund for shareholder servicing functions provided, equal 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, 1999,
sales proceeds and cost of securities purchased (other than short-term
investments and futures), amounted to $208,950,040 and $24,361,976,
respectively. Brokerage commissions on the above transactions amounted to
$181,821. Of this amount, $106,166 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,
------------
1999 1998
--------------------------
Shares sold.............................. 746 1,580
Dividends and
distributions reinvested.............. 182 4,239
Shares redeemed.......................... (23,467) (9,990)
----------------------------
Net decrease............................. (22,539) (4,171)
============================
<PAGE>
RWB/WPG U.S. LARGE STOCK FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
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. 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. During the year ended December
31, 1999, the Fund's custodian fees amounted to $45,396 of which $1,929 was
offset by such credits.
NOTE 6 -- 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, 1999:
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, 1999 is 51%.
Long-term capital gains distributions paid to shareholders by the Fund during
the fiscal year ended December 31, 1999 whether taken in shares or in cash is
$73,824,972.
NOTE 7 - SUBSEQUENT EVENT
TERMINATION OF FUND
Due to significant redemptions, the Trustees of the Fund approved the
liquidation of the Fund at a meeting held on December 14, 1999. The Fund was
terminated on January 21, 2000.
<PAGE>
<TABLE>
<CAPTION>
RWB/WPG U.S. LARGE STOCK FUND
FINANCIAL HIGHLIGHTS (for the years ended December 31,)
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
Per Share Data:
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Year.............$7.63 $7.43 $6.65 $6.39 $5.05
-------- ------------ ------------ ------------- -------------
Net Investment Income .......................$0.12.(b) $0.14 $0.12 $0.13 $0.13
Net Realized and Unrealized Gain/(Loss)
on Investments..........................0.86 1.65 1.93 1.12 1.58
-------- ------------ ------------ ------------- -------------
Total Income from Operations......................0.98 1.79 2.05 1.25 1.71
-------- ------------ ------------ ------------- -------------
Dividends from Net Investment Income.........(0.30) (0.13) (0.11) (0.12) (0.13)
Distributions from Capital Gains.............(0.55) (1.46) (1.16) (0.87) (0.24)
-------- ------------ ------------ ------------- -------------
Total Distributions..............................(0.85) (1.59) (1.27) (0.99) (0.37)
-------- ------------ ------------ ------------- -------------
Net Asset Value End of Year.....................$7.76 $7.63 $7.43 $6.65 $6.39
======== ============ ============ ============= =============
Total return........................................12.84% 24.51% 30.83% 19.33% 33.81%
Net assets at end of year (000's)..................$15,166 $186,896 $212,951 $200,226 $174,161
Ratios:
Ratio of Expenses to Average Net Assets (a)......0.46% 0.42% 0.51% 0.59% 0.69%
Ratio of Net Income to Average Net Assets (a)....1.20% 1.21% 1.46% 1.86% 2.26%
Portfolio Turnover Rate..........................17.5% 24.2% 54.2% 59.6% 27.1%
<FN>
(a) The Advisor agreed not to impose its full fee from inception through
December 31, 1999. Had the Advisor not so |agreed, the ratio of expenses and net
investment income to average net assets would have been 0.74% and 2.21% |for the
year ended 12/31/95, 0.62% and 1.83% for the year ended 12/31/96, 0.53% and
1.44% for the year ended
12/31/97, and 0.53% and 1.10% for the year ended 12/31/98, and 0.73% and 1.06%
for the year ended 12/31/99, respectively. The custody fee earnings credit had
an effect of less than 0.01% per share on the above ratios.
(b) Calculated using average shares method.
</FN>
</TABLE>
<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, 1999, 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 five-year
period then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
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, 1999, 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, 1999, 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 five-year period then ended, in conformity with
generally accepted accounting principles.
New York, New York KPMG LLP
January 20, 2000
<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.*
Lawrence J. Israel*
Graham E. Jones*
William B. Ross*
Robert A. Straniere*
*Member of Audit Committee
OFFICERS
Roger J. Weiss, President, Chairman and Trustee
Ronald M. Hoffner, Executive Vice President and Treasurer
Daniel Cardell, Vice President
Joseph J. Reardon, Vice President and Secretary
Steven M. Pires, 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
PFPC, INC.
P.O. Box 60448
King of Prussia, PA 19406-0448
LEGAL COUNSEL
Hale and Dorr
60 State Street
Boston, MA 02109
