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Previous: PHOENIX MEDIA GROUP LTD, 10SB12G/A, 2000-05-02 |
Next: HOLLIS EDEN PHARMACEUTICALS INC /DE/, 10-Q, 2000-05-02 |
<PAGE> 1
THE VALIANT FUND
Semi-Annual Report
February 29, 2000
<PAGE> 2
THE VALIANT FUND
Semi-Annual Report - February 29, 2000
Table of Contents
Page
----
Schedule of Portfolio Investments 1
U.S. TREASURY MONEY MARKET PORTFOLIO
Statement of Assets and Liabilities 10
Statement of Operations 10
Statement of Changes 11
U.S. TREASURY INCOME PORTFOLIO
Statement of Assets and Liabilities 12
Statement of Operations 12
Statement of Changes 13
GENERAL MONEY MARKET PORTFOLIO
Statement of Assets and Liabilities 14
Statement of Operations 14
Statement of Changes 15
TAX-EXEMPT MONEY MARKET PORTFOLIO
Statement of Assets and Liabilities 16
Statement of Operations 16
Statement of Changes 17
Notes to Financial Statements 18
Financial Highlights 24
<PAGE> 3
<TABLE>
VALIANT U.S. TREASURY MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments
February 29, 2000
(Unaudited)
<CAPTION>
PAR SECURITY MARKET
VALUE DESCRIPTION VALUE
----- ----------- -----
<S> <C> <C> <C>
U.S. TREASURY BILLS (a) (35.5%):
$10,000,000 4.47%, 3/2/00 $ 9,998,760
15,000,000 4.76%, 3/16/00 14,970,375
5,000,000 4.76%, 3/23/00 4,985,471
10,000,000 5.04%, 3/30/00 9,959,400
10,000,000 5.01%, 4/20/00 9,930,486
22,000,000 5.70%, 4/27/00 21,817,757
5,000,000 5.44%, 6/1/00 4,930,489
5,000,000 5.47%, 6/8/00 4,924,856
5,000,000 5.48%, 6/15/00 4,919,396
10,000,000 5.38%, 6/22/00 9,831,128
8,000,000 5.46%, 6/29/00 7,854,800
5,000,000 5.48%, 7/6/00 4,903,339
10,000,000 5.69%, 8/10/00 9,744,175
5,000,000 5.71%, 8/17/00 4,865,974
5,000,000 5.74%, 8/24/00 4,859,811
15,000,000 5.82%, 10/12/00 14,455,313
------------
TOTAL U.S. TREASURY BILLS (COST $142,951,530) 142,951,530
------------
REPURCHASE AGREEMENTS (64.9%):
30,000,000 First Boston Corp., 5.65%, 3/1/00 Repurchase Price 30,000,000
$30,004,708, (Collateralized by U.S. Treasury Bond, 8.75%,
due 5/15/17; par value $25,131,000; valued at $31,402,210)
18,783,000 First Boston Corp., 5.72%, 3/1/00 Repurchase Price 18,783,000
$18,785,984, (Collateralized by U.S. Treasury Bond, 6.00%,
due 2/15/26; par value $20,277,000; valued at $19,303,657)
51,000,000 Goldman, Sachs & Co., Inc., 5.65%, 3/1/00 Repurchase 51,000,000
Price $51,008,004, (Collateralized by U.S. Treasury Note,
6.125%, due 12/31/01; par value $51,860,000; valued at
$52,020,204)
81,000,000 J.P. Morgan & Co., Inc., 5.76%, 3/1/00 Repurchase Price 81,000,000
$81,012,960, (Collateralized by U.S. Treasury Note, 5.875%,
due 2/15/04; par value $84,533,000; valued at $82,620,831)
81,000,000 Morgan Stanley Group, Inc., 5.73%, 3/1/00 Repurchase Price 81,000,000
$81,012,892, (Collateralized by U.S. Treasury Bill, 0.00%, ------------
due 4/20/00 and by U.S. Treasury Bond, 7.125%, due
2/15/23; par value $77,295,000; valued at $83,426,746)
TOTAL REPURCHASE AGREEMENTS (COST $261,783,000) 261,783,000
------------
TOTAL INVESTMENTS (COST $404,734,530) (b) - 100.4% 404,734,530
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.4)% (1,732,311)
------------
TOTAL NET ASSETS - 100.0% $403,002,219
============
</TABLE>
- ------------
Percentages indicated are based on net assets of $403,002,219.
(a) Rate represents annualized yield to maturity at date of purchase.
(b) Cost and value for federal income tax and financial reporting purposes
are the same.
See notes to financial statements.
1
<PAGE> 4
<TABLE>
VALIANT GENERAL MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments
February 29, 2000
(Unaudited)
<CAPTION>
PAR SECURITY MARKET
VALUE DESCRIPTION VALUE
----- ----------- -----
<S> <C> <C> <C>
COMMERCIAL PAPER (a) (92.4%):
Beverages & Tobacco (6.2%):
Coca Cola Co.
$ 5,000,000 5.73%, 3/7/00 $ 4,995,225
7,000,000 5.75%, 4/17/00 6,947,451
9,500,000 5.76%, 4/18/00 9,427,040
------------
21,369,716
------------
Chemicals (2.3%):
Du Pont (E.I.) De Nemours & Co.
5,000,000 5.77%, 3/7/00 4,995,192
3,000,000 5.94%, 7/10/00 2,935,155
------------
7,930,347
------------
Consumer Goods & Services (9.5%):
Eastman Kodak Co.
9,000,000 5.83%, 4/26/00 8,918,380
5,000,000 5.83%, 5/5/00 4,947,368
Nike, Inc.
3,970,000 5.82%, 3/2/00 3,969,358
8,000,000 5.80%, 3/10/00 7,988,400
7,000,000 Sonoco Products Co. 6,989,938
5.75%, 3/10/00 ------------
32,813,444
------------
Drugs & Health Care (2.9%):
10,000,000 Abbott Laboratories
5.73%, 3/7/00 9,990,450
------------
Electrical & Electronic (8.0%):
10,000,000 Motorola, Inc.
5.84%, 4/28/00 9,905,991
W.W. Grainger, Inc.
9,000,000 5.75%, 3/6/00 8,992,813
9,000,000 5.82%, 4/14/00 8,935,980
------------
27,834,784
------------
Financial Services (30.4%):
14,000,000 Associates Corp. of North America
5.88%, 5/4/00 13,853,654
Bell Atlantic Financial Services
10,000,000 5.82%, 3/8/00 9,988,684
4,000,000 5.82%, 4/11/00 3,973,487
4,000,000 5.85%, 4/18/00 3,968,800
Caterpillar Financial Services
9,000,000 5.77%, 3/1/00 9,000,000
8,000,000 5.97%, 7/18/00 7,815,593
3,000,000 6.01%, 7/25/00 2,926,878
Ford Motor Credit Co.
5,000,000 5.81%, 4/6/00 4,970,950
10,000,000 5.83%, 4/19/00 9,920,647
5,000,000 5.86%, 5/22/00 4,933,261
</TABLE>
See notes to financial statements.
2
<PAGE> 5
<TABLE>
VALIANT GENERAL MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments (Continued)
February 29, 2000
(Unaudited)
<CAPTION>
PAR SECURITY MARKET
VALUE DESCRIPTION VALUE
----- ----------- -----
<S> <C> <C> <C>
General Motors Acceptance Corp.
$13,000,000 5.79%, 4/4/00 $ 12,928,913
7,000,000 5.81%, 4/7/00 6,958,200
IBM Credit Corp.
4,000,000 5.71%, 3/16/00 3,990,483
10,000,000 5.82%, 4/7/00 9,940,183
------------
105,169,733
------------
Food Products (6.4%):
5,000,000 General Mills, Inc.
5.75%, 3/15/00 4,988,819
17,000,000 H.J. Heinz Co.
5.76%, 3/7/00 16,983,680
------------
21,972,499
------------
Industrial Goods & Services (2.9%):
10,000,000 PPG Industries, Inc.
5.75%, 3/27/00 9,958,472
------------
Non-Bank Finance (5.5%):
General Electric Capital Corp.
7,000,000 5.71%, 3/29/00 6,968,912
12,000,000 5.78%, 4/3/00 11,936,420
------------
18,905,332
------------
Office Equipment & Services (8.1%):
10,000,000 Honeywell International
5.82%, 4/12/00 9,932,100
18,000,000 Pitney Bowes, Inc.
5.72%, 3/13/00 17,965,680
------------
27,897,780
------------
Printing & Publishing (2.9%):
10,000,000 McGraw-Hill Co., Inc.
5.70%, 3/21/00 9,968,333
------------
Telecommunications (7.3%):
AT&T Corp.
4,000,000 5.70%, 3/16/00 3,990,500
4,000,000 5.75%, 3/27/00 3,983,389
7,500,000 5.80%, 4/10/00 7,451,667
10,000,000 Lucent Technologies, Inc.
5.80%, 3/10/00 9,985,500
------------
25,411,056
------------
TOTAL COMMERCIAL PAPER (COST $319,221,946) 319,221,946
------------
U.S. GOVERNMENT AGENCY MORTGAGES (1.4%):
Federal Home Loan Mortgage Corp. (1.4%):
5,000,000 5.22%, 3/31/00 4,978,250
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES (COST $4,978,250) 4,978,250
------------
</TABLE>
See notes to financial statements.
3
<PAGE> 6
<TABLE>
VALIANT GENERAL MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments (Continued)
February 29, 2000
(Unaudited)
<CAPTION>
PAR SECURITY MARKET
VALUE DESCRIPTION VALUE
----- ----------- -----
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (6.7%):
$ 5,000,000 First Boston Corp., 5.72%, 3/1/00 Repurchase Price $ 5,000,000
$5,000,794, (Collateralized by U.S. Treasury Note, 11.625%,
due 11/15/04; par value $4,173,000; valued at $5,128,004),
5.72%, 3/1/00
12,261,000 J.P. Morgan & Co., Inc., 5.76%, 3/1/00 Repurchase Price 12,261,000
$12,262,962, (Collateralized by U.S. Treasury Note 5.875%,
due 11/15/04; par value $12,654,000; valued at
$12,506,689), 5.76%, 3/1/00
6,000,000 Morgan Stanley Group, Inc., 5.73%, 3/1/00 Repurchase Price 6,000,000
$6,000,955, (Collateralized by U.S. Treasury Bill, 4.66%, ------------
due 3/2/00 and by U.S. Treasury Bond, 6.625%, due 2/15/27;
par value $6,015,000; valued at $6,200,878), 5.73%, 3/1/00
TOTAL REPURCHASE AGREEMENTS (COST $23,261,000) 23,261,000
------------
TOTAL INVESTMENTS (COST $347,461,196) (b) - 100.5% 347,461,196
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)% (1,615,515)
------------
TOTAL NET ASSETS - 100.0% $345,845,681
============
</TABLE>
- ------------
Percentages indicated are based on net assets of $345,845,681.
(a) Rate represents annualized yield to maturity at date of purchase.
(b) Cost and value for federal income tax and financial reporting purposes
are the same.
See notes to financial statements.
4
<PAGE> 7
<TABLE>
VALIANT TAX-EXEMPT MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments
February 29, 2000
(Unaudited)
<CAPTION>
PAR SECURITY MARKET
VALUE DESCRIPTION VALUE
----- ----------- -----
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (101.8%):
Alaska (0.9%):
$ 2,000,000 Valdez Alaska Marine Term Revenue Exxon Pipeline Co. $ 2,000,000
Project, 3.80%*, 10/1/25 ------------
Arizona (2.6%):
3,000,000 Salt River AGR Improvement & Power District, 3.40%, 3/9/00, 3,000,000
LINE: Wells Fargo Morgan Guaranty, FNB Chicago, Bank of
America, Bank One, Norwest, and Bank of New York
2,500,000 Salt River AGR Improvement & Power District, 3.60%, 2,500,000
4/10/00, LINE: Wells Fargo Morgan Guaranty, FNB Chicago, ------------
Bank of America, Bank One, Norwest, and Bank of New York
5,500,000
------------
Colorado (0.5%):
1,000,000 Jefferson County School District, R-001, Series B, G.O., 1,006,874
5.00%, 12/15/00, FGIC Insured ------------
Connecticut (0.9%):
2,000,000 Connecticut State Special Assessment, Unemployment 2,000,000
Compensation, Series C, 3.38%, 7/1/00**, FGIC Insured, ------------
LIQ, SPI
Florida (3.3%):
1,200,000 Dade County Florida Industrial Development Authority 1,200,000
Exempt Facilities Revenue, Florida Power & Light Co.,
3.80%*, 6/1/21
2,000,000 Jacksonville Electric Authority Revenue, Series A, 3.85%*, 2,000,000
10/1/10, SBPA: Westdeutsche Landesbank
1,000,000 Jacksonville PCR, Florida Power & Light Co., 3.80%, 4/7/00 1,000,000
2,700,000 Sunshine State Government Finance Commission, 3.40%, 2,700,000
3/14/00, SBPA: UBS and Toronto Dominion Bank ------------
6,900,000
------------
Georgia (7.4%):
2,000,000 Burke County Development Authority PCR, Georgia Power 2,000,000
Co., 3.80%*, 7/1/24
2,500,000 Burke County, Oglethorpe Power, Series 98-A, 3.65%, 4/7/00 2,500,000
4,800,000 De Kalb Private Hospital Authority Revenue, Egelston 4,800,000
Children's Hospital, Series A, 3.90%*, 3/1/24, LOC: Suntrust
Bank
1,000,000 Fulton County School District, G.O., 5.80%, 5/1/00 1,003,899
1,630,000 Georgia Municipal Electric Authority, Series B, 3.85%*, 1/1/16 1,630,000
1,200,000 Georgia Municipal Electric Authority, Series B, 3.85%*, 6/1/20 1,200,000
2,500,000 State of Georgia, G.O., 6.25%, 4/1/00 2,504,453
------------
15,638,352
------------
Illinois (0.9%):
2,000,000 City of Chicago, G.O., 2.95%, 1/26/01, LOC: Westdeutsche 2,000,000
Landesbank ------------
Indiana (3.2%):
3,000,000 Mt. Vernon, Series 98-A, G.O., 3.85%, 3/7/00 3,000,000
</TABLE>
See notes to financial statements.
5
<PAGE> 8
<TABLE>
VALIANT TAX-EXEMPT MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments (Continued)
February 29, 2000
(Unaudited)
<CAPTION>
PAR SECURITY MARKET
VALUE DESCRIPTION VALUE
----- ----------- -----
<S> <C> <C> <C>
$ 3,700,000 St. Joseph County Indiana Educational Facilities, University $ 3,700,000
of Notre Dame, 3.70%*, 3/1/33, LIQ: Bank of America ------------
6,700,000
------------
Louisiana (1.0%):
2,100,000 Louisiana State Offshore Terminal Authority Deepwater Port 2,100,000
Revenue, 3.80%*, 9/1/06, LOC: Suntrust Bank ------------
Maryland (2.2%):
2,000,000 Maryland State Health & Higher Educational Facilities 2,000,000
Authority Revenue, Catholic Health Initiative, Series B,
4.00%*, 12/1/15, LOC: Morgan Guaranty Trust
2,500,000 Washington Suburban District, G.O., 6.70%, 8/1/01, 2,577,339
Prerefunded 8/1/00 @ 102 ------------
4,577,339
------------
Massachusetts (4.3%):
5,000,000 Massachusetts Water Resource Authority, Series A, 3.80%*, 5,000,000
4/1/28, SBPA: Bank of Nova Scotia
4,000,000 State of Massachusetts, Series A, G.O., 3.85%*, 9/1/16, 4,000,000
SBPA: Commerzbank A.G. ------------
9,000,000
------------
Michigan (3.6%):
1,000,000 Detroit Sewer Disposal Revenue, Series A, 3.90%*, 7/1/23 1,000,000
1,000,000 Michigan Municipal Bond Authority Revenue, Series B-1, 1,003,031
4.25%, 8/25/00
3,050,000 Michigan State Building Authority, 3.65%, 4/27/00, LOC: 3,050,000
2,500,000 Michigan State Housing Development Authority Rental 2,500,000
Revenue, Series B, 3.90%*, 4/1/19, LOC: Landesbank ------------
Hessen-Thueringen GZ
7,553,031
------------
Missouri (1.8%):
3,800,000 Columbia Water & Electric Revenue, Series B, 3.90%*, 3,800,000
12/1/15, LOC: Toronto Dominion Bank ------------
Nevada (2.2%):
4,575,000 Clark County Airport Improvement Revenue, Series A-1, 4,575,000
3.85%*, 7/1/25 ------------
New Jersey (1.3%):
2,800,000 New Jersey TRANS, 3.70%, 6/12/00, SBPA: Bank of Nova 2,800,000
Scotia, Commerzbank A.G. and Toronto Dominion Bank ------------
New Mexico (3.7%):
3,300,000 Albuquerque Airport Revenue, 3.85%*, 7/1/14 3,300,000
2,000,000 Farmington PCR, Arizona Public Service Co., Series A, 2,000,000
3.80%*, 5/1/24
2,500,000 New Mexico TRANS, 4.00%, 6/30/00 2,506,158
------------
7,806,158
------------
New York (5.1%):
2,070,000 Long Island Power Authority New York Electric Systems 2,070,000
Revenue, Series 6, 3.70%*, 5/1/33
1,000,000 Long Island Power Authority New York Electric Systems 1,000,000
Revenue, Series 5, 3.75%*, 5/1/33
</TABLE>
See notes to financial statements.
6
<PAGE> 9
<TABLE>
VALIANT TAX-EXEMPT MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments (Continued)
February 29, 2000
(Unaudited)
<CAPTION>
PAR SECURITY MARKET
VALUE DESCRIPTION VALUE
----- ----------- -----
<S> <C> <C> <C>
$ 3,400,000 Long Island Power Authority New York Electric Systems $ 3,400,000
Revenue, Series 7-B, 3.80%*, 4/1/25, MBIA Insured, SBPA:
Credit Suisse First Boston
1,700,000 New York City Municipal Water Finance Authority Water & 1,700,000
Sewer Systems Revenue, Series C, 3.80%*, 6/15/22, FGIC
Insured, SBPA, SPI
2,500,000 Triborough Bridge & Tunnel Authority Revenue, Series C, 2,500,000
3.80%*, 1/1/13, SBPA: Westdeutsche Landesbank ------------
10,670,000
------------
North Carolina (5.3%):
4,595,000 Charlotte Airport Revenue, Series A, 3.85%*, 7/1/16, MBIA 4,595,000
Insured, SBPA: Commerzbank A.G.
1,500,000 Raleigh-Durham Airport Authority Special Facilities 1,500,000
Revenue, Series A, 3.80%*, 11/1/05, LOC: Bank of America
5,000,000 Winston-Salem Water & Sewer Systems Revenue, 3.90%*, 5,000,000
6/1/14, SBPA: Wachovia Bank ------------
11,095,000
------------
Ohio (2.6%):
1,000,000 Ohio State Building Authority, Series A, 5.50%, 10/1/00 1,008,805
1,500,000 The Ohio State University General Receipts, Series A-2, 1,511,214
5.15%, 12/1/00
3,000,000 The Ohio State University General Receipts, Series B, 3,000,000
3.80%*, 12/1/29 ------------
5,520,019
------------
Pennsylvania (2.5%):
5,000,000 Berks County, 7.25%, 11/15/20, FGIC Insured, Prerefunded 5,209,157
11/15/00 @102 ------------
Puerto Rico (1.3%):
2,800,000 Puerto Rico Common Wealth TRANS, Series A-1, 4.50%, 2,808,541
7/30/00 ------------
Rhode Island (2.9%):
1,800,000 State of Rhode Island, G.O., 3.90%*, 6/1/18, SBPA: 1,800,000
Lanesbank Hessen-Thueringen GZ
4,390,000 State of Rhode Island, Series B, G.O., 3.90%*, 9/1/18, 4,390,000
SBPA:Landesbank Hessen-Thueringen GZ ------------
6,190,000
------------
South Carolina (3.7%):
4,800,000 Piedmont Municipal Power Agency Revenue, Series B, 4,800,000
3.95%*, 1/1/19
2,000,000 South Carolina Public Service Authority, 3.80%, 4/7/00, LOC: 2,000,000
Bank of America, Commerzbank A.G. and Toronto Dominion
1,000,000 State of South Carolina, G.O., 5.50%, 4/1/00 1,001,897
------------
7,801,897
------------
South Dakota (0.5%):
1,000,000 South Dakota Housing Development Authority, Series C, 1,001,465
4.90%, 5/1/00 ------------
</TABLE>
See notes to financial statements.
7
<PAGE> 10
<TABLE>
VALIANT TAX-EXEMPT MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments (Continued)
February 29, 2000
(Unaudited)
<CAPTION>
PAR SECURITY MARKET
VALUE DESCRIPTION VALUE
----- ----------- -----
<S> <C> <C> <C>
Tennessee (4.1%):
$ 2,600,000 Metropolitan Nashville Airport Authority Special Facilities $ 2,600,000
Revenue, Series B, 3.75%*, 10/1/12, LOC: Bayerische
Landesbank
2,000,000 Shelby County, 3.45%, 3/6/00, LOC: Landesbank Hessen 2,000,000
1,000,000 Shelby County, Series B, G.O., 5.10%, 3/1/00 1,000,000
3,000,000 State of Tennessee, Series C, 3.85%*, 7/2/01, SBPA: 3,000,000
Tennessee Construction Retirement Systems ------------
8,600,000
------------
Texas (17.8%):
2,500,000 Austin Combined Utility System, 3.60%, 3/15/00, LOC: 2,500,000
Morgan Guaranty
2,500,000 Dallas Area Rapid Transit Authority, 3.50%, 4/11/00, LOC: 2,500,000
Westdeutsche Landesbank and Bayerische Landesbank
2,000,000 Dallas Area Rapid Transit Authority, 3.85%*, 1/5/05, LOC: 2,000,000
Credit Local de France
2,196,000 Dallas Water & Sewer System, 3.70%, 5/8/00, LOC: UBS 2,196,000
1,004,000 Dallas Water & Sewer System, 3.70%, 5/8/00, LOC: UBS 1,004,000
1,500,000 Grapevine Industrial Development Corp. Revenue, Series 1,500,000
B-2, 3.75%*, 12/1/24, LOC: Bayerische Landesbank
2,000,000 Grapevine Industrial Development Corp. Revenue, Series 2,000,000
B-4, 3.75%*, 12/1/24, LOC: Bayerische Landesbank
2,000,000 Harris County, G.O., 3.60%, 6/7/00, LOC: Bank of Nova 2,000,000
Scotia
600,000 Harris County, G.O., 4.00%, 6/7/00, LOC: Bank of Nova 600,000
Scotia
1,205,000 Harris County, G.O., 3.80%, 3/13/00, LOC: UBS 1,205,000
1,000,000 Houston Water & Sewer, 3.70%, 5/24/00, LOC: 1,000,000
Westdeutsche Landesbank and Bayerische Landesbank
1,500,000 Houston, G.O., 3.50%, 4/10/00, LOC: Toronto Dominion Bank 1,500,000
2,800,000 North Central Texas Health Facilities Development Corp. 2,800,000
Revenue, 3.75%*, 12/1/15, MBIA Insured, SBPA:
Nationsbank
1,500,000 North Central Texas Health Facilities Development Corp. 1,500,000
Revenue,, 3.75%*, 12/1/15, MBIA Insured, SBPA:
Nationsbank
2,500,000 San Antonio E&G, 3.55%, 3/8/00, LOC: Morgan Guaranty, 2,500,000
Bank of America, Bank of New York and Westdeutsche
Landesbank
2,500,000 San Antonio Water System, 3.55%, 3/7/00, LOC: 2,500,000
Westdeutsche Landesbank
3,000,000 Southwest Higher Education Authority, Southern Methodist 3,000,000
University, 3.80%*, 7/1/15, LOC: Landesbank
Hessen-Thueringen GZ
5,000,000 State of Texas TRANS, Series A, 4.50%, 8/31/00 5,012,663
------------
37,317,663
------------
Utah (0.9%):
2,000,000 State of Utah, Series A, G.O., 3.80%*, 7/1/16, SBPA: 2,000,000
Toronto Dominion Bank ------------
</TABLE>
See notes to financial statements.
8
<PAGE> 11
<TABLE>
VALIANT TAX-EXEMPT MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments (Continued)
February 29, 2000
(Unaudited)
<CAPTION>
PAR SECURITY MARKET
VALUE DESCRIPTION VALUE
----- ----------- -----
<S> <C> <C> <C>
Virginia (1.4%):
$ 3,000,000 Fairfax County Industrial Development Authority Revenue, $ 3,000,000
Series C, 5.85%, 10/1/25, LIQ: Inova Health System ------------
Washington (7.2%):
4,000,000 Seattle Municipal Light & Power Revenue, 3.80%*, 6/1/21, 4,000,000
SBPA: Morgan Guaranty Trust
4,500,000 Washington Health Care Facilities Authority Revenue, 4,500,000
Series B, 3.80%*, 10/1/05, SBPA: Rabobank Nederland
1,400,000 Washington Health Care Facilities Authority Revenue, 1,400,000
Series E, 3.80%*, 10/1/05, SBPA: Rabobank Nederland
4,200,000 Washington Public Power Supply Systems Nuclear Project 4,200,000
No. 1 Revenue, Series 1-A-1, 3.15%*, 7/1/17, LOC: Bank of
America
1,000,000 Washington Public Power Supply Systems Nuclear Project 1,004,477
No. 2 Revenue, Series A, 5.00%, 7/1/00 ------------
15,104,477
------------
Wisconsin (6.7%):
4,900,000 Sheboygan PCR, 3.90%*, 8/1/14 4,900,000
3,300,000 Sheboygan PCR, 3.95%*, 9/1/15 3,300,000
4,812,000 State of Wisconsin, G.O., 3.55%, 3/6/00, LOC: Bank of Nova 4,812,000
Scotia and Commerzbank A.G.
1,000,000 State of Wisconsin, Series D, G.O., 6.00%, 5/1/01, 1,014,417
Prerefunded 5/1/00 @ 101 ------------
14,026,417
------------
TOTAL MUNICIPAL BONDS AND NOTES (COST $214,301,390) 214,301,390
------------
TOTAL INVESTMENTS (COST $214,301,390) (a) - 101.8% 214,301,390
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.8)% (3,760,014)
------------
TOTAL NET ASSETS - 100.0% $210,541,376
============
</TABLE>
- ------------
Percentages indicated are based on net assets of $210,541,376.
(a) Cost and value for federal income tax and financial reporting purposes
are the same.
* Variable rate investments. The rate presented on the Schedule of
Portfolio Investments is the rate in effect at February 29, 2000.
** Put and demand features exist allowing the fund to require the
repurchase of the investment within variable time periods ranging from
daily, weekly, monthly or semi-annually. Maturity date reflects the
next put date.
GLOSSARY OF TERMS
FGIC Financial Guaranty Insurance Corp.
G.O. General Obligation
LINE Line of Credit
LIQ Liquidity Facility
LOC Letter of Credit
MBIA MBIA Insurance Corp.
PCR Pollution Control Revenue
SBPA Standby Purchase Agreement
SPI Securities Purchase, Inc.
TRANS Tax and Revenue Anticipation Notes
See notes to financial statements.
9
<PAGE> 12
<TABLE>
THE VALIANT FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
<CAPTION>
Statement of Assets and Liabilities
FEBRUARY 29, 2000
(Unaudited)
<S> <C> <C>
ASSETS:
Investments, at value (cost $142,951,530) $142,951,530
Repurchase agreements, at value
(cost $261,783,000) 261,783,000
------------
Total Invesments 404,734,530
Cash 956
Interest receivable 60,383
Prepaid expenses and other assets 2,264
------------
TOTAL ASSETS 404,798,133
LIABILITIES:
Dividends payable $1,590,330
Accrued expenses
Investment advisory fees 64,053
Distribution and service fees 141,531
----------
TOTAL LIABILITIES 1,795,914
------------
NET ASSETS $403,002,219
============
NET ASSETS:
Capital 403,282,421
Undistributed net investment income 51,967
Accumulated net realized losses from
investment transactions (332,169)
------------
NET ASSETS $403,002,219
============
Class A Shares
Net Assets $ 21,265,383
Shares 21,280,884
Offering and redemption price per share $ 1.00
============
Class B Shares
Net Assets $ 76,482,831
Shares 76,634,416
Offering and redemption price per share $ 1.00
============
Class D
Net Assets $276,223,805
Shares 276,335,075
Offering and redemption price per share $ 1.00
============
Class E
Net Assets $ 29,030,200
Shares 29,032,045
Offering and redemption price per share $ 1.00
============
<CAPTION>
Statement of Operations
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
(Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Interest income $ 9,480,287
------------
TOTAL INCOME 9,480,287
EXPENSES:
Investment advisory fees $ 360,864
Distribution and shareholder servicing fees:
Class B Shares 112,665
Class D Shares 634,286
Class E Shares 100,103
Trustee fees 17,999
Other 169
----------
Total expenses before voluntary fee
reductions 1,226,086
Expenses voluntarily reduced (50,189)
------------
Net Expenses 1,175,897
------------
NET INVESTMENT INCOME 8,304,390
------------
REALIZED LOSSES FROM INVESTMENTS:
Net realized losses from investment
transactions (18,429)
------------
Change in net assets resulting from
operations $ 8,285,961
============
</TABLE>
See notes to financial statements.
10
<PAGE> 13
<TABLE>
THE VALIANT FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
<CAPTION>
Statements of Changes in Net Assets
FOR THE SIX
MONTHS ENDED FOR THE
FEBRUARY 29, YEAR ENDED
2000 AUGUST 31,
(UNAUDITED) 1999
------------- --------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 8,304,390 $ 20,640,794
Net realized losses from investment transactions (18,429) (256,840)
------------ -------------
Change in net assets resulting from operations 8,285,961 20,383,954
------------ -------------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Class A Shares (448,943) (1,204,030)
Class B Shares (1,549,548) (11,523,371)
Class D Shares (5,771,252) (7,798,165)
Class E Shares (534,647) (115,228)
------------ -------------
Change in net assets from shareholder dividends (8,304,390) (20,640,794)
------------ -------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS 105,908,435 (222,392,400)
------------ -------------
Change in net assets 105,890,006 (222,649,240)
NET ASSETS:
Beginning of period 297,112,213 519,761,453
------------ -------------
End of period $403,002,219 $ 297,112,213
============ =============
</TABLE>
See notes to financial statements.
11
<PAGE> 14
<TABLE>
THE VALIANT FUND
U.S. TREASURY INCOME PORTFOLIO
<CAPTION>
Statement of Assets and Liabilities
FEBRUARY 29, 2000
(Unaudited)
<S> <C> <C>
ASSETS:
Cash $ 979
Prepaid expenses and other assets 1,866
--------
TOTAL ASSETS 2,845
LIABILITIES:
Accrued expenses and other payables:
Investment advisory fees $ 2,197
Other payables 31
-------
TOTAL LIABILITIES 2,228
--------
NET ASSETS $ 617
========
NET ASSETS:
Capital 618
Undistributed net investment income 84
Accumulated net realized losses from
investment transactions (85)
--------
NET ASSETS $ 617
========
Class A Shares
Net Assets $ 617
Shares 618
Offering and redemption price per share $ 1.00
========
<CAPTION>
Statement of Operations
FOR THE PERIOD DECEMBER 7, 1999 TO JANUARY 19, 2000*
(Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Interest income $377,376
--------
TOTAL INCOME 377,376
EXPENSES:
Investment advisory fees $17,142
-------
Total Expenses 17,142
--------
NET INVESTMENT INCOME 360,234
--------
Change in net assets resulting from
operations $360,234
========
</TABLE>
* The Portfolio operated from December 7, 1999 to January 19, 2000.
See notes to financial statements.
12
<PAGE> 15
<TABLE>
THE VALIANT FUND
U.S. TREASURY INCOME PORTFOLIO
<CAPTION>
Statements of Changes in Net Assets
FOR THE PERIOD
DECEMBER 7, FOR THE PERIOD
1999 TO JANUARY DECEMBER 14,
19, 2000* 1998 TO JANUARY
(UNAUDITED) 22, 1999**
--------------- ---------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 360,234 $ 368,777
--------- ---------
Change in net assets resulting from operations 360,234 368,777
--------- ---------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Class A Shares (360,234) (368,700)
--------- ---------
Change in net assets from shareholder dividends (360,234) (368,700)
--------- ---------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS 3 (24,924)
--------- ---------
Change in net assets 3 (24,847)
NET ASSETS:
Beginning of period 614 25,461
--------- ---------
End of period $ 617 $ 614
========= =========
</TABLE>
* The Portfolio operated from December 7, 1999 to January 19, 2000.
** The Portfolio operated from December 14, 1998 to January 22, 1999.
See notes to financial statements.
13
<PAGE> 16
<TABLE>
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
<CAPTION>
Statement of Assets and Liabilities
FEBRUARY 29, 2000
(Unaudited)
<S> <C> <C>
ASSETS:
Investments, at value (cost $324,200,196) $324,200,196
Repurchase agreements, at value
(cost $23,261,000) 23,261,000
------------
Total investments 347,461,196
Cash 7
Interest receivable 3,711
Prepaid expenses and other assets 6,589
------------
TOTAL ASSETS 347,471,503
LIABILITIES:
Dividends payable $1,514,640
Accrued expenses and other payables:
Investment advisory fees 55,031
Distribution and service fees 56,151
----------
TOTAL LIABILITIES 1,625,822
------------
NET ASSETS $345,845,681
============
NET ASSETS:
Capital $346,108,891
Accumulated net realized losses from
investment transactions (263,210)
------------
NET ASSETS $345,845,681
============
Class A Shares
Net Assets $255,230,546
Shares 255,489,750
Offering and redemption price per share $ 1.00
============
Class B Shares
Net Assets $ 456,895
Shares 457,733
Offering and redemption price per share $ 1.00
============
Class D Shares
Net Assets $ 10,862,279
Shares 10,862,193
Offering and redemption price per share $ 1.00
============
Class E Shares
Net Assets $ 79,295,961
Shares 79,299,215
Offering and redemption price per share $ 1.00
============
<CAPTION>
Statement of Operations
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
(Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Interest income $ 9,469,183
------------
TOTAL INCOME 9,469,183
EXPENSES:
Investment advisory fees $ 336,877
Distribution and shareholder servicing fees:
Class B Shares 1,538
Class D Shares 9,875
Class E Shares 170,514
Trustee fees 16,834
Other 288
----------
Total expenses before voluntary fee
reductions 535,926
Expenses voluntarily reduced (17,274)
------------
Net Expenses 518,652
------------
NET INVESTMENT INCOME 8,950,531
------------
REALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment
transactions 3,492
------------
Change in net assets resulting from
operations $ 8,954,023
============
</TABLE>
See notes to financial statements.
14
<PAGE> 17
<TABLE>
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
<CAPTION>
Statements of Changes in Net Assets
FOR THE SIX
MONTHS ENDED FOR THE
FEBRUARY 29, YEAR ENDED
2000 AUGUST 31,
(UNAUDITED) 1999
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 8,950,531 $ 15,885,876
Net realized gains/(losses) from investment transactions 3,492 (17,877)
------------ ------------
Change in net assets resulting from operations 8,954,023 15,867,999
------------ ------------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Class A Shares (7,827,136) (14,903,734)
Class B Shares (22,259) (634,426)
Class D Shares (101,052) --
Class E Shares (1,000,084) (347,716)
------------ ------------
Change in net assets from shareholder dividends (8,950,531) (15,885,876)
------------ ------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS 59,305,393 (4,027,090)
------------ ------------
Change in net assets 59,308,885 (4,044,967)
NET ASSETS:
Beginning of period 286,536,796 290,581,763
------------ ------------
End of period $345,845,681 $286,536,796
============ ============
</TABLE>
See notes to financial statements.
15
<PAGE> 18
<TABLE>
THE VALIANT FUND
TAX-EXEMPT MONEY MARKET PORTFOLIO
<CAPTION>
Statement of Assets and Liabilities
FEBRUARY 29, 2000
(Unaudited)
<S> <C> <C>
ASSETS:
Investments, at value (cost $214,301,390) $214,301,390
Cash 621,158
Interest receivable 1,196,515
------------
TOTAL ASSETS 216,119,063
LIABILITIES:
Dividends payable $ 545,523
Payable for investment purchased 5,000,000
Accrued expenses
Investment advisory fees 32,164
----------
TOTAL LIABILITIES 5,577,687
------------
NET ASSETS $210,541,376
============
NET ASSETS:
Capital 210,704,801
Accumulated net realized losses from
investment transactions (163,425)
------------
NET ASSETS $210,541,376
============
Class A Shares
Net Assets $210,541,376
Shares 210,704,801
Offering and redemption price per share $ 1.00
============
<CAPTION>
Statement of Operations
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
(Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Interest income $ 3,799,370
------------
TOTAL INCOME 3,799,370
EXPENSES:
Investment advisory fees $ 218,422
Trustee fees 10,893
----------
Total expenses before voluntary fee
reductions 229,315
Expenses voluntarily reduced (10,893)
------------
Net Expenses 218,422
------------
NET INVESTMENT INCOME 3,580,948
------------
REALIZED LOSSES FROM INVESTMENTS:
Net realized losses from investment
transactions (42,330)
------------
Change in net assets resulting from
operations $ 3,538,618
============
</TABLE>
See notes to financial statements.
16
<PAGE> 19
<TABLE>
THE VALIANT FUND
TAX-EXEMPT MONEY MARKET PORTFOLIO
<CAPTION>
Statements of Changes in Net Assets
FOR THE SIX
MONTHS ENDED FOR THE
FEBRUARY 29, YEAR ENDED
2000 AUGUST 31,
(UNAUDITED) 1999
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 3,580,948 $ 7,460,994
Net realized gains/(losses) from investment transactions (42,330) 972
------------ ------------
Change in net assets resulting from operations 3,538,618 7,461,966
------------ ------------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Class A Shares (3,580,948) (7,460,994)
------------ ------------
Change in net assets from shareholder dividends (3,580,948) (7,460,994)
------------ ------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS (77,758,946) 19,684,346
------------ ------------
Change in net assets (77,801,276) 19,685,318
NET ASSETS:
Beginning of period 288,342,652 268,657,334
------------ ------------
End of period $210,541,376 $288,342,652
============ ============
</TABLE>
See notes to financial statements.
17
<PAGE> 20
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2000 (UNAUDITED)
1. ORGANIZATION
The Valiant Fund (the "Trust") was organized as a Massachusetts business trust
on January 29, 1993 and is registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), as an open end management investment company. The
Trust offers four managed investment portfolios. The accompanying financial
statements and financial highlights are those of the U.S. Treasury Money Market
Portfolio (the "U.S. Treasury Money Market"), the U.S. Treasury Income Portfolio
(the "U.S. Treasury Income"), the General Money Market Portfolio (the "General
Money Market") and the Tax-Exempt Money Market Portfolio (the "Tax-Exempt Money
Market") (referred to individually as a "Portfolio" and collectively as the
"Portfolios"). The Trust is authorized to offer five classes of shares: Class A,
Class B, Class C (has not commenced operations), Class D and Class E.
The investment objective of the U.S. Treasury Money Market, U.S. Treasury
Income, and General Money Market is to obtain as high a level of current income
as is consistent with the preservation of capital and liquidity.
The investment objective of the Tax-Exempt Money Market is to seek primarily
income exempt from federal income tax.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make certain estimates and
assumptions that affect the amounts of assets and liabilities reported at the
date of the financial statements and the amounts of income and expenses reported
during the reported period. Actual results could differ from those estimates.
PORTFOLIO VALUATIONS: Investments of the Portfolios are valued at amortized
cost, which approximates market value. Under the amortized cost method, discount
or premium is accreted or amortized, respectively, on a constant (straight-line)
basis to the maturity of the security.
REPURCHASE AGREEMENTS: Each Portfolio, except the U.S. Treasury Income
Portfolio, may engage in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, a Portfolio takes possession of collateral subject
to an obligation of the seller to repurchase, and the Portfolio to resell, the
obligation at an agreed upon price and time, thereby determining the yield
during the Portfolio's holding period. This agreement results in a fixed rate of
return that is not subject to market fluctuations during the Portfolio's holding
period. It is the Portfolio's policy to maintain collateral that is at least
equal, at all times, to the total amount of the repurchase obligations including
interest. In the event of a counterparty default, the Portfolio has the right to
use the collateral to offset losses incurred. There is potential loss to the
Portfolio in the event the Portfolio is delayed or prevented from exercising its
rights to dispose of the collateral securities, including the risk of a possible
decline in the market value of the underlying securities during the period while
the Portfolio seeks to assert its rights. The Portfolio's sub-adviser, David L.
Babson & Co. Inc., acting under the supervision of the Trust's Board of
Trustees, reviews the value of collateral and the creditworthiness of those
banks and dealers with which the Portfolio enters into repurchase agreements to
evaluation potential risks.
18
<PAGE> 21
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS -(CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized gains and losses on investments sold are
recorded on the identified cost basis. Interest income, including accretion of
discount and amortization of premium on investments (where applicable), is
accrued on a daily basis. Realized gains and losses are allocated based upon the
relative net assets of each class of shares.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends on each share of the
Portfolios are determined in the same manner, irrespective of class, except that
shares of each class may bear separate fees under the distribution plan adopted
for that class. It is the policy of the Portfolios to declare dividends daily
from net investment income and to pay such dividends monthly. Net realized
capital gains, if any, are distributed at least annually.
Distributions from net investment income and from net realized capital gains are
determined in accordance with federal income tax regulations, which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
composition of net assets based on their federal tax-basis treatment; temporary
differences do not require reclassification. Distributions to shareholders which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as distributions in
excess of net investment income or net realized gains. To the extent they exceed
net investment income and net realized gains for tax purposes, they are reported
as distributions of capital.
Federal Taxes: It is the policy of each of the Portfolios to qualify or to
continue to qualify as a regulated investment company by complying with the
provisions available to registered investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions of
net investment income and net realized capital gains sufficient to relieve it
from all, or substantially all, federal income taxes.
EXPENSE ALLOCATION: Expenses directly attributable to a Portfolio are charged to
the Portfolio, while expenses, which are attributed to more than one Portfolio
of the Trust, are allocated among the respective Portfolios based on relative
net assets. Each share class bears its pro-rata portion of expenses attributable
to its series, except that each class separately bears its own distribution
fees.
3. CAPITAL SHARE TRANSACTONS
Transactions in capital and shares of beneficial interest by class for the
Portfolio's for the six months ended February 29, 2000:
19
<PAGE> 22
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS -(CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
U.S. TREASURY MONEY MARKET U.S. TREASURY INCOME
PORTFOLIO PORTFOLIO
--------------------------------------- ---------------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE DECEMBER 7, FOR THE PERIOD
FEBRUARY 29, YEAR ENDED 1999 TO JANUARY DECEMBER 14,
2000 AUGUST 31, 19, 2000 1998 TO JANUARY
(UNAUDITED) 1999 (UNAUDITED) 22, 1999
------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued $ 49,022,115 $ 53,480,150 $ 129,146,313 $ 121,187,913
Dividends reinvested 148 415 3 77
Cost of shares redeemed (42,844,424) (69,564,003) (129,146,313) (121,212,914)
------------- --------------- ------------- -------------
Class A capital transactions $ 6,177,839 $ (16,083,438) $ 3 $ (24,924)
------------- --------------- ------------- -------------
CLASS B SHARES:
Proceeds from shares issued $ 66,842,206 $ 1,018,981,987 $ -- $ --
Cost of shares redeemed (54,581,509) (1,281,291,723) -- --
------------- --------------- ------------- -------------
Class B capital transactions $ 12,260,697 $ (262,309,736) $ -- $ --
------------- --------------- ------------- -------------
CLASS D SHARES
Proceeds from shares issued $ 591,897,244 $ 1,106,797,543 $ -- $ --
Cost of shares redeemed (520,373,205) (1,063,882,954) -- --
------------- --------------- ------------- -------------
Class D capital transactions $ 71,524,039 $ 42,914,589 $ -- $ --
------------- --------------- ------------- -------------
CLASS E SHARES
Proceeds from shares issued $ 96,482,106 $ 19,605,953 $ -- $ --
Dividends reinvested 21 12 -- --
Cost of shares redeemed (80,536,267) (6,519,780) -- --
------------- --------------- ------------- -------------
Class E capital transactions $ 15,945,860 $ 13,086,185 $ -- $ --
------------- --------------- ------------- -------------
Change from capital transactions $ 105,908,435 $ (222,392,400) $ 3 $ (24,924)
============= =============== ============= =============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued 49,022,115 53,480,150 129,146,313 121,187,913
Reinvested 148 415 3 77
Redeemed (42,844,424) (69,564,003) (129,146,313) (121,212,914)
------------- --------------- ------------- -------------
Change in Class A Shares 6,177,839 (16,083,438) 3 (24,924)
------------- --------------- ------------- -------------
CLASS B SHARES:
Issued 66,842,206 1,018,981,987 -- --
Redeemed (54,581,509) (1,281,291,723) -- --
------------- --------------- ------------- -------------
Change in Class B Shares 12,260,697 (262,309,736) -- --
------------- --------------- ------------- -------------
CLASS D SHARES
Issued 591,897,244 1,106,797,543 -- --
Redeemed (520,373,205) (1,063,882,954) -- --
------------- --------------- ------------- -------------
Change in Class D Shares 71,524,039 42,914,589 -- --
------------- --------------- ------------- -------------
CLASS E SHARES
Issued 96,482,106 19,605,953 -- --
Reinvested 21 12 -- --
Redeemed (80,536,267) (6,519,780) -- --
------------- --------------- ------------- -------------
Change in Class E Shares 15,945,860 13,086,185 -- --
------------- --------------- ------------- -------------
Change from share transactions 105,908,435 (222,392,400) 3 (24,924)
============= =============== ============= =============
</TABLE>
20
<PAGE> 23
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS -(CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
GENERAL MONEY MARKET TAX-EXEMPT MONEY MARKET
PORTFOLIO PORTFOLIO
----------------------------------------- ---------------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
FEBRUARY 29, YEAR ENDED FEBRUARY 29, YEAR ENDED
2000 AUGUST 31, 2000 AUGUST 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
--------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued $ 1,610,669,286 $ 3,044,081,955 $ 316,389,801 $ 1,122,783,416
Dividends reinvested 718,714 2,607,904 16 161
Cost of shares redeemed (1,610,963,845) (3,064,845,668) (394,148,763) (1,103,099,231)
--------------- --------------- ------------- ---------------
Class A capital transactions $ 424,155 $ (18,155,809) $ (77,758,946) $ 19,684,346
--------------- --------------- ------------- ---------------
CLASS B SHARES:
Proceeds from shares issued $ 197,046 $ 37,761,032 $ -- $ --
Cost of shares redeemed (1,315,104) (53,794,425) -- --
--------------- --------------- ------------- ---------------
Class B capital transactions $ (1,118,058) $ (16,033,393) $ -- $ --
--------------- --------------- ------------- ---------------
CLASS D SHARES
Proceeds from shares issued $ 25,070,290 $ -- $ -- $ --
Cost of shares redeemed (14,208,097) -- -- --
--------------- --------------- ------------- ---------------
Class D capital transactions $ 10,862,193 $ -- $ -- $ --
--------------- --------------- ------------- ---------------
CLASS E SHARES
Proceeds from shares issued $ 109,284,730 $ 37,384,570 $ -- $ --
Dividends reinvested 23 10 -- --
Cost of shares redeemed (60,147,650) (7,222,468) -- --
--------------- --------------- ------------- ---------------
Class E capital transactions $ 49,137,103 $ 30,162,112 $ -- $ --
--------------- --------------- ------------- ---------------
Change from capital transactions $ 59,305,393 $ (4,027,090) $ (77,758,946) $ 19,684,346
=============== =============== ============= ===============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued 1,610,669,286 3,044,081,955 316,389,801 1,122,783,416
Reinvested 718,714 2,607,904 16 161
Redeemed (1,610,963,845) (3,064,845,668) (394,148,763) (1,103,099,231)
--------------- --------------- ------------- ---------------
Change in Class A Shares 424,155 (18,155,809) (77,758,946) 19,684,346
--------------- --------------- ------------- ---------------
CLASS B SHARES:
Issued 197,046 37,761,032 -- --
Redeemed (1,315,104) (53,794,425) -- --
--------------- --------------- ------------- ---------------
Change in Class B Shares (1,118,058) (16,033,393) -- --
--------------- --------------- ------------- ---------------
CLASS D SHARES
Issued 25,070,290 -- -- --
Redeemed (14,208,097) -- -- --
--------------- --------------- ------------- ---------------
Change in Class D Shares 10,862,193 -- -- --
--------------- --------------- ------------- ---------------
CLASS E SHARES
Issued 109,284,730 37,384,570 -- --
Reinvested 23 10 -- --
Redeemed (60,147,650) (7,222,468) -- --
--------------- --------------- ------------- ---------------
Change in Class E Shares 49,137,103 30,162,112 -- --
--------------- --------------- ------------- ---------------
Change from share transactions 59,305,393 (4,027,090) (77,758,946) 19,684,346
=============== =============== ============= ===============
</TABLE>
21
<PAGE> 24
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS -(CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
4. RELATED PARTY TRANSACTIONS
Integrity Management & Research, Inc. (the "Investment Adviser" or the
"Manager"), a wholly-owned subsidiary of Integrity Investments, Inc., serves as
the Investment Adviser to the Trust. Integrity Investments, Inc. (the
"Distributor") acts as exclusive distributor of the Trust's shares.
The Trust pays the Manager a fee, computed daily and paid monthly, at the annual
rate of 0.20% of the average daily net assets of the Trust. Under its Management
Agreement with the Trust, the Manager performs certain administrative and
management services for the Trust and pays the compensation, if any, of officers
and Trustees who are affiliated with the Manager or the Sub-Adviser and pays all
the Portfolio expenses with the following exceptions: the fees and expenses of
those Trustees who are not "interested persons" (as defined in the Investment
Company Act of 1940) of the Trust; interest on borrowings; taxes; expenses
incurred by Class B, Class C, Class D and Class E shares pursuant to the
Distribution and Shareholder Servicing Plans; and such extraordinary
non-recurring expenses as may arise.
From time to time, the Manager may voluntarily waive all or a portion of the
fees payable to it by a Portfolio. As such, the Manager has agreed to reimburse
the Portfolios for expenses exceeding 0.20% of average daily net assets for
Class A shares, 0.45% of the average daily net assets for Class B shares, 0.30%
of average daily net assets for Class C shares, 0.70% of average daily net
assets for Class D shares and 1.00% of average daily net assets for Class E
shares.
All other expenses incurred by the Portfolios are paid directly by the Manager,
except for distribution and shareholder servicing fees, trustee fees, and other
miscellaneous fees.
The Trust has adopted distribution and shareholder servicing plans for the Class
A, Class B, Class C, Class D and Class E shares (together, the "Plans") pursuant
to Rule 12b-1 of the 1940 Act. The Plans provide for payments to the Distributor
of up to 0.35% of the average net assets of the Class B shares, up to 0.50% of
the average net assets of the Class C shares, up to 0.50% of the average net
assets of the Class D shares and up to 0.80% of the average net assets of the
Class E shares. Payments under the Plans have been authorized at the rate of
0.25% of each Portfolio's average daily net assets for the Class B shares, 0.40%
of each Portfolio's average daily net assets for the Class C shares, 0.50% of
each Portfolio's average daily net assets for the Class D shares and 0.80% of
each Portfolio's average daily net assets for the Class E shares, for the six
months ended February 29, 2000. No payments have been authorized for the Class A
shares.
22
<PAGE> 25
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS -(CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
Fees may be voluntarily reduced to assist the Portfolios in maintaining more
competitive expense ratios. Information regarding fee reduction transactions is
as follows for the six months ended February 29, 2000:
<TABLE>
<CAPTION>
Investment Distribution and
Advisory Shareholder
Fees Servicing Fees
---------- ----------------
Voluntary Voluntary
Fee Fee
Reductions Reductions
---------- ----------
<S> <C> <C>
U.S. Treasury Money Market Portfolio 17,999 32,190
U.S. Treasury Income Portfolio -- --
General Money Market Portfolio 16,834 440
Tax-Exempt Money Market Portfolio 10,893 --
</TABLE>
23
<PAGE> 26
<TABLE>
THE VALIANT FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
<CAPTION>
Financial Highlights, Class A Shares
FOR THE SIX
MONTHS ENDED
FEBRUARY 29, FOR THE YEARS ENDED AUGUST 31,
2000 --------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income 0.025 0.047 0.053 0.052 0.053 0.054
Net realized losses from investment transactions (0.000)** (0.000)** -- -- -- --
------- ------- ------- ------- ------- -------
Total from Investment Activities 0.025 0.047 0.053 0.052 0.053 0.054
------- ------- ------- ------- ------- -------
Dividends
Net investment income (0.025) (0.047) (0.053) (0.052) (0.053) (0.054)
------- ------- ------- ------- ------- -------
Total Dividends (0.025) (0.047) (0.053) (0.052) (0.053) (0.054)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL RETURN 2.54% (a) 4.77% 5.43% 5.30% 5.45% 5.60%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $21,265 $15,088 $31,185 $23,063 $85,260 $30,183
Ratio of expenses to average net assets 0.20% (b) 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to average net assets 5.07% (b) 4.69% 5.27% 5.12% 5.21% 5.79%
Ratio of expenses to average net assets 0.21% (b)* 0.20% 0.20% 0.20% 0.20% 0.21%*
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Less than $0.001 per share.
(a) Not annualized.
(b) Annualized.
<TABLE>
<CAPTION>
Financial Highlights, Class B Shares
FOR THE SIX
MONTHS ENDED
FEBRUARY 29, FOR THE YEARS ENDED AUGUST 31,
2000 ----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ ------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- -------- -------- -------- -------
Investment Activities
Net investment income 0.024 0.044 0.051 0.049 0.050 0.052
Net realized losses from investment transactions (0.000)** (0.000)** -- -- -- --
------- ------- -------- -------- -------- -------
Total from Investment Activities 0.024 0.044 0.051 0.049 0.050 0.052
------- ------- -------- -------- -------- -------
Dividends
Net investment income (0.024) (0.044) (0.051) (0.049) (0.050) (0.052)
------- ------- -------- -------- -------- -------
Total Dividends (0.024) (0.044) (0.051) (0.049) (0.050) (0.052)
------- ------- -------- -------- -------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======== ======== ======== =======
TOTAL RETURN 2.41% (a) 4.51% 5.17% 5.04% 5.18% 5.34%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $76,483 $64,266 $326,675 $300,437 $126,327 $76,114
Ratio of expenses to average net assets 0.45% (b) 0.45% 0.45% 0.45% 0.45% 0.45%
Ratio of net investment income to average net assets 4.83% (b) 4.42% 5.05% 4.93% 5.01% 5.41%
Ratio of expenses to average net assets 0.56% (b)* 0.45% 0.45% 0.45% 0.45% 0.46%*
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Less than $0.001 per share.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
24
<PAGE> 27
<TABLE>
THE VALIANT FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
<CAPTION>
Financial Highlights, Class D Shares
FOR THE SIX
MONTHS ENDED
FEBRUARY 29, FOR THE YEARS ENDED AUGUST 31,
2000 ------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 (a)
------------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------
Investment Activities
Net investment income 0.023 0.042 0.048 0.047 0.015
Net realized losses from investment transactions (0.000)** (0.000)** -- -- --
-------- -------- -------- -------- -------
Total from Investment Activities 0.023 0.042 0.048 0.047 0.015
-------- -------- -------- -------- -------
Dividends
Net investment income (0.023) (0.042) (0.048) (0.047) (0.015)
-------- -------- -------- -------- -------
Total Dividends (0.023) (0.042) (0.048) (0.047) (0.015)
-------- -------- -------- -------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== =======
TOTAL RETURN 2.29% (b) 4.25% 4.91% 4.78% 1.55% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $276,224 $204,713 $161,901 $101,401 $35,549
Ratio of expenses to average net assets 0.70% (c) 0.70% 0.70% 0.70% 0.70% (c)
Ratio of net investment income to average net assets 4.56% (c) 4.16% 4.79% 4.69% 4.68% (c)
Ratio of expenses to average net assets 0.71% (c)* 0.70% 0.70% 0.70% 0.70% (c)
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Less than $0.001 per share.
(a) The Portfolio commenced Class D shares operations on May 1, 1996.
(b) Not annualized.
(c) Annualized.
<TABLE>
<CAPTION>
Financial Highlights, Class E Shares
FOR THE SIX
MONTHS ENDED FOR THE
FEBRUARY 29, YEAR ENDED
2000 AUGUST 31,
(UNAUDITED) 1999 (a)
------------ ----------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00
------- -------
Investment Activities
Net investment income 0.021 0.015
Net realized losses from investment transactions (0.000)** (0.000)**
------- -------
Total from Investment Activities 0.021 0.015
------- -------
Dividends
Net investment income (0.021) (0.015)
------- -------
Total Dividends (0.021) (0.015)
------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00
======= =======
TOTAL RETURN 2.13% (b) 1.54% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $29,030 $13,086
Ratio of expenses to average net assets 1.00% (c) 0.99% (c)
Ratio of net investment income to average net assets 4.28% (c) 3.81% (c)
Ratio of expenses to average net assets 1.01% (c)* 0.99% (c)
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Less than $0.001 per share.
(a) The Portfolio commenced Class E shares operations on April 6, 1999.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
25
<PAGE> 28
<TABLE>
THE VALIANT FUND
U.S. TREASURY INCOME PORTFOLIO
<CAPTION>
Financial Highlights, Class A Shares
FOR THE PERIODS ENDED
------------------------------------------------------------------------------
2000 (a)
(UNAUDITED) 1999 (b) 1998 (c) 1997 (d) 1996 (e) 1995 (f)
----------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income 0.005 0.004 0.007 0.005 0.004 0.004
------- ------- ------- ------- ------- -------
Total from Investment Activities 0.005 0.004 0.007 0.005 0.004 0.004
------- ------- ------- ------- ------- -------
Dividends
Net investment income (0.005) (0.004) (0.007) (0.005) (0.004) (0.004)
------- ------- ------- ------- ------- -------
Total Dividends (0.005) (0.004) (0.007) (0.005) (0.004) (0.004)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL RETURN 0.51% (g) 0.40% (g) 0.74% (g) 0.54% (g) 0.35% (g) 0.39% (g)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 1 $ 1 $ 25 $ 25 $ 25 $ 25
Ratio of expenses to average net assets 0.20% (h) 0.20% (h) 0.20% (h) 0.20% (h) 0.20% (h) 0.20% (h)
Ratio of net investment income to average
net assets 4.31% (h) 3.69% (h) 4.83% (h) 4.24% (h) 4.15% (h) 4.47% (h)
Ratio of expenses to average net assets 0.20% (h) 0.22% (h)* 0.23% (h)* 0.23% (h)* 0.35% (h)* 0.29% (h)*
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) The Portfolio operated from December 7, 1999 to January 19, 2000.
(b) The Portfolio operated from December 14, 1998 to January 22, 1999.
(c) The Portfolio operated from December 17, 1997 to February 11, 1998.
(d) The Portfolio operated from December 13, 1996 to January 30, 1997.
(e) The Portfolio operated from December 11, 1995 to January 10, 1996.
(f) The Portfolio operated from December 12, 1994 to January 11, 1995.
(g) Not annualized.
(h) Annualized.
See notes to financial statements.
26
<PAGE> 29
<TABLE>
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
<CAPTION>
Financial Highlights, Class A
FOR THE SIX
MONTHS ENDED
FEBRUARY 29, FOR THE YEARS ENDED AUGUST 31,
2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Investment Activities
Net investment income 0.027 0.049 0.054 0.053 0.053 0.056
Net realized gains from investment transactions 0.000 ** (0.000)** -- -- -- --
-------- -------- -------- -------- -------- --------
Total from Investment Activities 0.027 0.049 0.054 0.053 0.053 0.056
-------- -------- -------- -------- -------- --------
Dividends
Net investment income (0.027) (0.049) (0.054) (0.053) (0.053) (0.056)
-------- -------- -------- -------- -------- --------
Total Dividends (0.027) (0.049) (0.054) (0.053) (0.053) (0.056)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN 2.73% (a) 5.00% 5.54% 5.40% 5.52% 5.81%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $255,231 $254,808 $272,980 $568,715 $334,069 $375,965
Ratio of expenses to average net assets 0.20% (b) 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to average net assets 5.42% (b) 4.91% 5.40% 5.33% 5.36% 5.70%
Ratio of expenses to average net assets 0.21% (b)* 0.20% 0.20% 0.20% 0.20% 0.20%
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Less than $0.001 per share.
(a) Not annualized.
(b) Annualized.
<TABLE>
<CAPTION>
Financial Highlights, Class A
FOR THE SIX
MONTHS ENDED
FEBRUARY 29, FOR THE YEARS ENDED AUGUST 31,
2000 ---------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income 0.026 0.046 0.052 0.050 0.051 0.053
Net realized gains from investment transactions 0.000 ** (0.000)** -- -- -- --
------- ------- ------- ------- ------- -------
Total from Investment Activities 0.026 0.046 0.052 0.050 0.051 0.053
------- ------- ------- ------- ------- -------
Dividends
Net investment income (0.026) (0.046) (0.052) (0.050) (0.051) (0.053)
------- ------- ------- ------- ------- -------
Total Dividends (0.026) (0.046) (0.052) (0.050) (0.051) (0.053)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL RETURN 2.60% (a) 4.74% 5.28% 5.14% 5.26% 5.54%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 457 $ 1,569 $17,602 $ 9,155 $ 8,734 $ 9,461
Ratio of expenses to average net assets 0.45% (b) 0.45% 0.45% 0.45% 0.45% 0.45%
Ratio of net investment income to average net assets 5.09% (b) 4.72% 5.16% 5.02% 5.11% 5.33%
Ratio of expenses to average net assets 0.56% (b)* 0.45% 0.45% 0.45% 0.45% 0.45%
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Less than $0.001 per share.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
27
<PAGE> 30
<TABLE>
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
<CAPTION>
Financial Highlights, Class D
FOR THE SIX
MONTHS ENDED
FEBRUARY 29,
2000 (a)
(UNAUDITED)
------------
<S> <C>
Net Asset Value, Beginning of Period $ 1.00
-------
Investment Activities
Net investment income 0.021
Net realized gains from investment transactions 0.000 **
-------
Total from Investment Activities 0.021
-------
Dividends
Net investment income (0.021)
-------
Total Dividends (0.021)
-------
Net Asset Value, End of Period $ 1.00
=======
TOTAL RETURN 2.14% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $10,862
Ratio of expenses to average net assets 0.70% (c)
Ratio of net investment income to average net assets 5.12% (c)
Ratio of expenses to average net assets 0.71% (c)*
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Less than $0.001 per share.
(a) Portfolio commenced Class D shares operations on September 27, 1999.
(b) Not annualized.
(c) Annualized.
<TABLE>
<CAPTION>
Financial Highlights, Class E
FOR THE SIX
MONTHS ENDED FOR THE
FEBRUARY 29, YEAR ENDED
2000 AUGUST 31,
(UNAUDITED) 1999 (a)
------------ ----------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00
------- -------
Investment Activities
Net investment income 0.023 0.013
Net realized gains from investment transactions 0.000 ** (0.000)**
------- -------
Total from Investment Activities 0.023 0.013
------- -------
Dividends
Net investment income (0.023) (0.013)
------- -------
Total Dividends (0.023) (0.013)
------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00
======= =======
TOTAL RETURN 2.32% (b) 1.31% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $79,296 $30,159
Ratio of expenses to average net assets 1.00% (c) 0.99% (c)
Ratio of net investment income to average net assets 4.70% (c) 4.00% (c)
Ratio of expenses to average net assets 1.01% (c)* 1.00% (c)*
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Less than $0.001 per share.
(a) Portfolio commenced Class E shares operations on May 5, 1999.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
28
<PAGE> 31
<TABLE>
THE VALIANT FUND
TAX-EXEMPT MONEY MARKET PORTFOLIO
<CAPTION>
Financial Highlights, Class A
FOR THE SIX
MONTHS ENDED
FEBRUARY 29, FOR THE YEARS ENDED AUGUST 31,
2000 -----------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Investment Activities
Net investment income 0.016 0.030 0.034 0.034 0.034 0.035
Net realized losses from investment transactions (0.000)** 0.000 ** -- -- -- --
-------- -------- -------- -------- -------- --------
Total from Investment Activities 0.016 0.030 0.034 0.034 0.034 0.035
-------- -------- -------- -------- -------- --------
Dividends
Net investment income (0.016) (0.030) (0.034) (0.034) (0.034) (0.035)
-------- -------- -------- -------- -------- --------
Total Dividends (0.016) (0.030) (0.034) (0.034) (0.034) (0.035)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN 1.66% (a) 3.01% 3.41% 3.42% 3.43% 3.67%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $210,541 $288,343 $268,657 $282,368 $279,867 $283,654
Ratio of expenses to average net assets 0.20% (b) 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to average net assets 3.29% (b) 2.96% 3.35% 3.38% 3.34% 3.50%
Ratio of expenses to average net assets 0.21% (b)* 0.20% 0.20% 0.20% 0.20% 0.20%
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Less than $0.001 per share.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
29
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