<PAGE>
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WSIS SERIES TRUST
Wertheim Equity
Value Fund
Wertheim Small
Capitalization Value Fund
Wertheim High Yield
Income Fund
Wertheim Investment
Grade Income Fund
Wertheim Short-Term
Investment Fund
WSIS Series Trust
P.O. Box 8507
Boston, Mass. 02266
1-800-464-3108
SEMI-ANNUAL REPORT
0496WS
April 30, 1996
(Unaudited)
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WSIS SERIES TRUST
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INVESTMENT MANAGER
Schroder Wertheim Investment Services, Inc. (SWIS) is a wholly owned subsidiary
of Schroders plc. Wertheim & Co. was founded in 1927 to provide investment
banking, investment advisory and related services. In 1995 the firm was
integrated with Schroders plc and SWIS became part of the Schroder Investment
Management Group which manages in excess of $100 billion for clients globally.
The new organization now has an expanded capital base as well as total global
representation in financial markets. As of April 30, 1996, Schroder Wertheim
Investment Services had over $4 billion under management.
June 24, 1996
Dear Shareholder:
We are pleased to present the financial statements for WSIS Series Trust for the
semi-annual period ended April 30, 1996. Following their extraordinary results
of the previous year, the U.S. equity markets continued to produce strong
returns over the first half of the current fiscal year with the S&P 500 up
13.76%. Performance of the fixed income markets, however, was muted with the
Lehman Brothers Government/Corporate Index up 0.04%. Specific discussion of
performance for each Fund is included in its respective section of the Report.
The Trust is a family of five domestic Funds that provide a diversity of
investment opportunity. A conservative investment approach which emphasizes
undervalued and generally out of favor securities carefully selected through
rigorous fundamental research is the strategy underlying the management of WSIS
Series Trust. In momentum driven bull-markets we seek to provide competitive
performance. In down and stable market periods we seek to produce above average
results.
On the economic front, in late 1995 and early this year, conventional wisdom was
that the U.S. economy was teetering on the brink of recession, that the Federal
Reserve would be easing monetary policy in an aggressive manner throughout 1996,
and that inflation would be flat to down vis-a-vis 1995. Harsh weather and
several government shutdowns exacerbated the economy's problems over the winter,
adding to the general atmosphere of gloom and doom. Our view during this whole
episode was that the inventory excess was mild and that the adjustment process
would thus not be sufficient to tip the economy into recession. Furthermore, bad
weather and government shutdowns were simply temporary hurdles for the economy
that would be unlikely to have a lasting impact. Events such as a successful
inventory adjustment, stronger job growth and a continued solid expansion in
final demand, seem now to have vindicated our view (which was out of favor for a
few months).
Although consensus expectations have risen in response to these recent signs of
strength in the economy, we believe that the economy still has more upside
potential in 1996 than most believe. We are looking for an average of 3.5% real
GDP growth in the middle two quarters of the year, which is almost a full
percentage point above consensus surveys taken in mid-May. We also expect
inflation to edge up in the months ahead due to the impact of above trend growth
against a backdrop of an economy already bumping up against capacity
constraints. In order to head off a potentially significant rise in inflation,
the Federal Reserve is likely sometime this summer to begin to tighten monetary
policy, with the first move possibly coming as early as the July 2/3 Federal
Open Market Committee meeting. The ultimate extent of monetary tightening is not
anticipated to be severe, perhaps being limited to reversing the 75 basis points
of easing which was implemented over the course of the second half of 1995 and
very early this year.
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WSIS SERIES TRUST
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At the time of the writing of this letter, E. William (Bill) Smethurst, Jr. has
announced his intention to reduce his administrative responsibilities at SWIS
and has indicated that he will be unavailable to stand for reelection to the
office of Trustee. The disinterested Trustees have determined, as a result, that
I should stand in Bill's place as a nominee for election to the office of
Trustee.
Bill will continue to focus his efforts on the equity investment process as
Senior Investment Strategist at SWIS. He will remain on the investment committee
of the Funds. Jane Lucas, Vice President of the Trust, will join him on the
investment committee as the individual responsible for decisions taken with
respect to the Equity Value Fund.
We thank you for your continued support of the Trust.
Sincerely,
Laura E. Luckyn-Malone
President
2
WSIS SERIES TRUST
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WERTHEIM EQUITY VALUE FUND
PORTFOLIO AND STRATEGY REVIEW AS OF APRIL 30, 1996
Driven by declining interest rates in the first three months and by a
strengthening economy in the second three, the equity markets again posted
strong performance over the six months ended April 30, 1996. The Wertheim Equity
Value Fund rose 14.07% for the first half of its fiscal year as compared with a
13.76% increase in the S&P 500 Index over the same period. Over the most recent
quarter, the Fund appreciated 4.58%, as compared with the S&P 500 which
increased 3.40% during the same period. On April 30, 1996 net assets of the Fund
were $44,109,935.
Although market sentiment regarding economic growth and the direction of
interest rates has swung between recession and boom over the past six months,
our economic outlook has remained consistent with our view at the beginning of
1996. We still expect the economy to reaccelerate to an above trend growth rate
as the year unfolds. Accordingly, the Fund's portfolio remains weighted toward
cyclical issues. Changes in the structure of the Fund's portfolio since October
1995 include modest increases in energy, capital goods, and basic industry
stocks, a return to an above market weighting in technology issues, and a
reduction in retail stocks. We had established an overweight position in retail
stocks last year in the belief that the prices of these stocks discounted a more
negative economic performance than was likely. After a very strong performance
through the early part of 1996, their prices, in our opinion, discounted a
better economic outcome than the modest growth rate in our forecast. Some of the
sale proceeds were redeployed to the basic industry and capital goods sectors.
Like the retailers before them, we believe stocks in these two sectors will
benefit from the perception that the economy will return to a modest growth
rate. The year-end sell-off in the technology sector afforded attractive
valuations in stocks of high quality companies. Our weighting in this area is
now again above that of the market.
As alluded to above, different drivers of performance characterized the equity
market for the first three months of the Fund's fiscal year contrasted with the
second three months. In the second half of last year and into the beginning of
1996, falling interest rates resulted in higher valuations for the stable growth
and financial stocks, which led the market's surge. Investors shunned most
cyclical stocks as the economy's soft landing proved to be hard on profits.
Consumer related stocks such as retailers were particularly hard-hit as concern
about the inventory correction grew into fears of an impending recession. During
February through April, by contrast, the bond market offered no support for the
stock market. As signs of economic firming proliferated, the thirty-year
government bond turned in its worst performance since 1987. Issues such as
utilities, which are particularly sensitive to interest rates, underperformed
the market as did the consumer staple and health care stocks. Conversely, stocks
in most cyclical industries performed well as economic fears receded. In this
environment, as a result, the cyclical bias of the Fund's portfolio advanced
relative performance sufficiently in the latter three months to produce returns
better than the S&P 500 for the six month period. Notably contributing to the
Fund's positive performance in this regard were its significantly above
market-weighted capital goods holdings, with GENERAL ELECTRIC CO., ALLIED SIGNAL
INC., GENERAL SIGNAL CORP., and TEXTRON INC. all posting gains ahead of the S&P
500 over the six months. Also benefiting Fund performance was the aforementioned
rebound in retailers and stock selection in the technology and energy sectors,
particularly BMC SOFTWARE and AMERADA HESS CORP. With the exception of
BANKAMERICA CORP., which returned over 30% for the six months, interest
sensitive financials and utilities limited relative performance.
3
WSIS SERIES TRUST
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WSIS SERIES TRUST
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WERTHEIM SMALL CAPITALIZATION VALUE FUND
PORTFOLIO AND STRATEGY REVIEW AS OF APRIL 30, 1996
The Wertheim Small Capitalization Value Fund gained 22.91% for the six month
period ended April 30, 1996, outperforming its benchmark, the Russell 2000
Index, which rose 18.42%. Over the most recent quarter the Fund appreciated
14.94%, as compared with the Russell 2000 which increased 10.89% during the same
period. On April 30, 1996 net assets of the Fund were $52,702,059.
Since mid-January, small cap stocks have begun to outperform large cap equities,
reversing a trend which has been in place over the last two years. The Fund
appreciated 20% from January 16 to April 30, 1996. Growing evidence that the
Federal Reserve Bank has engineered a "soft economic landing" particularly
benefited cyclical issues year-to-date. The Fund has been overweighted in these
issues because of their low valuations based on our 1996 earnings estimates. The
Fund has recently added to its technology holdings. This sector has experienced
indiscriminate selling pressure over the last six months and now offers many
compelling values. We have identified certain companies where we expect economic
reacceleration to coincide with specific new product cycles capable of producing
strong earnings gains over the next several quarters. Technology holdings
currently constitute 23% of the portfolio, compared with 18% at the end of the
January quarter. The remainder of the portfolio is well balanced among other
industry sectors, which we think is important given the present, choppy market
environment.
Small cap outperformance over the last three months may be the resumption of the
small cap cycle we have been anticipating. A "normal" small cap cycle, when the
equities of small companies outperform large ones, extends 6-8 years and has
often had two distinct phases. The first leg of the current cycle began in late
1990 and ended in February 1994 when the Federal Reserve Bank began tightening
interest rates. Increasing evidence that the U.S. economy is reaccelerating
while inflation remains low has coincided with extremely attractive relative
valuation levels of small companies versus large ones. We think this has ignited
the second leg of the cycle. Historically, the second half of a small cap cycle
has proven to be more powerful than the first because of greater price earnings
ratio expansion.
We continue to find high quality, well managed companies in the small cap value
arena which appear to be mispriced. We recently added HARMAN INTERNATIONAL to
the portfolio. Harman is a global leader in high-fidelity audio products for
professional, consumer and automotive markets. Revenue growth is accelerating
with new product introductions and new market opportunities. Earnings are
expected to outpace revenue gains over the next several quarters as margins
expand in overseas businesses. Harman shares are currently valued at 12x our
fiscal 1997 (6/30/97) earnings estimate and we believe earnings growth will
exceed 20% in each of the next three years. Harman's valuation typifies that of
the Small Capitalization Value portfolio. It carries an unweighted average price
earnings ratio which is lower than the market yet has projected earnings growth
significantly greater than the overall market. This represents compelling value,
and we are confident that our approach will continue to generate above average
returns over a full market cycle.
4
WSIS SERIES TRUST
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WERTHEIM HIGH YIELD INCOME FUND
PORTFOLIO AND STRATEGY REVIEW AS OF APRIL 30, 1996
The Wertheim High Yield Income Fund gained 5.22% for the six months ended April
30, 1996, outperforming its benchmark, the Salomon Brothers High Yield Market
Index, which rose 4.12%. During the most recent quarter, the Fund gained 0.92%,
ahead of the Salomon Brothers Index's return of 0.09% over the same period. On
April 30, 1996 net assets of the Fund were $17,301,309.
During the semi-annual period, the Fund reduced its weighting of "BB" rated
securities while increasing the weighting of "B" rated securities by
approximately 9%. The "CCC/NR" rated securities' weighting was unchanged during
the same period. The Fund's exposure to the cable and media and
telecommunications sectors was increased in response to opportunities created by
the recent deregulation of these industries. Exposure to the paper and forest
sector was reduced due to weak commodity paper prices while the metals and
mining sector was reduced due to concerns regarding capacity additions. The Fund
also increased its exposure to the energy sector and reduced exposure to the
chemical sector in response to rising oil prices. Additionally, the Fund has
begun to increase its exposure to consumer-related credits in response to better
employment statistics.
During the six month period, the "BB" High Yield sector underperformed the "B"
sector, 3.01% versus 4.67% respectively, while the "CCC" sector outperformed
both with a strong return of 10.42%. Management's strategy to reduce the "BB"
exposure in anticipation of rising rates and better than expected economic
statistics capitalized on this trend. The "CCC" sector outperformance was also
due to the better economic outlook and the Fund benefited from its exposure to
this sector.
Relative to the Index, the Fund is currently moderately overweighted in the "B"
rating sector and even-weighted in the "CCC" sector. Management's current
economic forecast is for moderate economic growth and modest increases in
interest rates and inflation. Given this outlook, management anticipates that
higher credit quality securities will continue to underperform the higher
yielding, weaker credits. Management will look to further position the Fund to
take advantage of this perspective as opportunities present themselves.
WERTHEIM INVESTMENT GRADE INCOME FUND
PORTFOLIO AND STRATEGY REVIEW AS OF APRIL 30, 1996
The Wertheim Investment Grade Income Fund declined 0.19% for the six month
period ended April 30, 1996, compared to its benchmark, the Lehman Brothers
Government/Corporate Index, which rose 0.04%. Over the most recent quarter the
Fund declined 3.72%, versus the Lehman Brothers Index which declined 3.61%
during the same period. On April 30, 1996 net assets of the Fund were
$26,709,340.
It is management's current view that the economic environment for fixed income
securities continues to deteriorate. Our strategy has allowed the portfolio's
modified duration to continue to shorten. Interest income collected and
contributions to the Fund have accumulated thus increasing the cash equivalent
holdings of the Fund to 7%.
5
WSIS SERIES TRUST
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Relative values within the fixed income sector have begun to change. For the
first time in several years, mortgage pass-throughs yield more than generic
Baa/BBB corporate notes. Mortgage prepayments have become rational and
predictable. Management has begun to increase mortgage-backed security holdings.
Corporate spreads (the incremental yield above U.S. Treasury Notes) remain very
narrow. As a result, corporate issues sold by the portfolio are to be the source
of funds to purchase mortgage issues. Management has reduced the Fund's holdings
of corporate securities from 43% at the end of the first fiscal quarter to the
present 39%, while mortgages have been increased from 1% to 6% for the same
period. Management expects under current market conditions to continue
increasing mortgage-backed security holdings to approximately 15% of the total
Fund.
<TABLE>
<CAPTION>
LEHMAN
BROTHERS
WERTHEIM GOVERNMENT/
INVESTMENT GRADE CORPORATE
INCOME FUND INDEX
---------------- --------------
<S> <C> <C>
Modified Duration 4.7 years 5.02 years
Average Maturity 6.6 years 9.39 years
Sectors
U.S. Treasury/Agency 48% 75%
Corporates 39% 25%
Mortgages 6% 0%
Cash Equivalents 7% 0%
</TABLE>
WERTHEIM SHORT-TERM INVESTMENT FUND
PORTFOLIO AND STRATEGY REVIEW AS OF APRIL 30, 1996
For the six month period ended April 30, 1996, the Wertheim Short-Term
Investment Fund had a positive total return of 2.18% compared to the 2.62%
return of the 90-Day U.S. Treasury Bill. For the quarter ended April 30, 1996,
the Fund's total return was 0.88% versus the 90-Day U.S. Treasury Bill's return
of 1.30% during the same period. On April 30, 1996 net assets of the Fund were
$31,845,991.
Yield premiums of non-U.S. Treasury cash equivalents remain at historic narrow
levels. This presents a challenge for management to find conservative,
well-researched alternatives that can outperform the risk free 90 day U.S.
Treasury Bill. The shape of the money market yield curve (the additional yield
available by buying longer issues) does not provide enough incentive to lengthen
the Fund's average maturity. The yield available on two and three-year U.S.
Treasury issues is becoming attractive; however, the economic environment is not
favorable enough to warrant any significant holdings in these maturities.
We continue to pursue our fundamental research effort to discover alternative
cash equivalents to enhance the total returns without increasing the duration
risk of the Fund. Mortgage securities are beginning to exhibit value and we will
continue to evaluate their usefulness.
6
WSIS SERIES TRUST
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WSIS SERIES TRUST
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PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
YEAR LIFE OF YEAR LIFE OF
ENDED FUND ENDED ENDED FUND ENDED
MARCH 31, 1996 MARCH 31, 1996* APRIL 30, 1996 APRIL 30, 1996*
----------------- ----------------- --------------- -----------------
<S> <C> <C> <C> <C>
Wertheim Equity Value Fund....................... 25.83% 11.73% 23.92% 11.79%
Wertheim Small Capitalization Value Fund......... 26.38% 10.33% 32.01% 13.58%
Wertheim High Yield Income Fund.................. 9.69% 3.09% 7.86% 3.24%
Wertheim Investment Grade Income Fund............ 10.15% 4.94% 7.72% 4.34%
Wertheim Short-Term Investment Fund.............. 5.00% 3.97% 5.05% 3.94%
</TABLE>
* From commencement of operations (February 16, 1994 for Wertheim Equity Value
Fund, Wertheim Small Capitalization Value Fund and Wertheim High Yield Income
Fund; February 22, 1994 for Wertheim Investment Grade Income Fund and January
11, 1994 for Wertheim Short-Term Investment Fund)
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS.
RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE
OF AN INVESTMENT IN A FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
THE VIEWS EXPRESSED IN THIS REPORT WERE THOSE OF THE FUND'S PORTFOLIO MANAGERS
AS OF THE DATES SPECIFIED, AND MAY NOT REFLECT THE VIEWS OF THE PORTFOLIO
MANAGERS ON THE DATE THIS REPORT IS FIRST PUBLISHED OR ANY TIME THEREAFTER.
THESE VIEWS ARE INTENDED TO ASSIST SHAREHOLDERS OF THE FUNDS IN UNDERSTANDING
THEIR INVESTMENTS IN THE FUNDS AND DO NOT CONSTITUTE INVESTMENT ADVICE;
INVESTORS SHOULD CONSULT THEIR OWN INVESTMENT PROFESSIONALS AS TO THEIR
INDIVIDUAL INVESTMENT PROGRAMS.
7
WSIS SERIES TRUST
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WERTHEIM EQUITY VALUE FUND
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SCHEDULE OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
COMMON STOCKS
BASIC INDUSTRY - (7.7%)
33,500 Ferro Corporation 929,625
35,100 James River Corporation of Virginia 938,925
46,400 LTV Corporation New (1) 638,000
16,500 Reynolds Metals Company 886,875
-----------
3,393,425
CAPITAL GOODS - (16.6%)
27,100 Allied Signal, Incorporated 1,575,187
19,600 General Electric Company 1,519,000
31,100 General Signal Corporation 1,181,800
18,000 Textron, Incorporated 1,543,500
10,400 Xerox Corporation 1,523,600
-----------
7,343,087
CONSUMER CYCLICAL - (12.0%)
26,400 General Motors Corporation 1,432,200
31,600 Time Warner, Incorporated 1,291,650
45,900 Toys "R" Us, Incorporated (1) 1,279,462
53,100 Wal Mart Stores, Incorporated 1,267,763
-----------
5,271,075
CONSUMER STAPLES - (13.1%)
26,800 Albertson's, Incorporated 1,031,800
19,000 Colgate Palmolive Company 1,455,875
22,400 General Mills, Incorporated 1,243,200
37,500 Heinz H J Company 1,270,312
10,700 Kimberly Clark Corporation 777,088
-----------
5,778,275
ENERGY - (11.8%)
17,800 Amerada Hess Corporation 1,007,925
19,000 Amoco Corporation 1,387,000
21,300 Chevron Corporation 1,235,400
13,500 Mobil Corporation 1,552,500
-----------
5,182,825
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
FINANCE - (11.6%)
15,000 Aetna Life & Casualty Company 1,068,750
17,500 American International Group,
Incorporated 1,599,062
18,400 BankAmerica Corporation 1,393,800
7,500 General Reinsurance Corporation 1,071,563
-----------
5,133,175
TECHNOLOGY - (16.7%)
31,900 Autodesk, Incorporated 1,299,925
8,200 BMC Software, Incorporated (1) 499,175
19,600 Cisco Systems, Incorporated (1) 1,016,750
10,900 Intel Corporation 738,475
12,500 International Business Machines 1,343,750
11,400 Linear Technology Corporation 391,875
14,600 LSI Logic Corporation (1) 525,600
70,100 Novell, Incorporated (1) 1,016,450
9,400 Seagate Technology 545,200
-----------
7,377,200
TELECOMMUNICATIONS - (2.0%)
14,200 AT&T Corporation 869,750
-----------
TRANSPORTATION - (1.7%)
25,600 Ryder Systems, Incorporated 745,600
-----------
UTILITIES - (6.6%)
20,100 FPL Group, Incorporated 866,813
32,400 GTE Corporation 1,405,350
41,200 Northeast Utilities 654,050
-----------
2,926,213
-----------
TOTAL COMMON STOCKS
(Cost $37,627,456) - 99.8% 44,020,625
-----------
</TABLE>
See notes to financial statements.
8
WSIS SERIES TRUST
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WERTHEIM EQUITY VALUE FUND
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SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ Value $
--------- -----------
<C> <S> <C>
SHORT TERM INVESTMENT
REPURCHASE AGREEMENT - (2.3%)
1,016,000 State Street Bank and Trust Company
4.750% 05/01/1996 (2) 1,016,000
-----------
TOTAL SHORT TERM INVESTMENT
(Cost $1,016,000) - 2.3% 1,016,000
-----------
TOTAL INVESTMENTS
(Cost $38,643,456) - 102.1% 45,036,625
LIABILITIES IN EXCESS OF OTHER ASSETS -
(2.1)% (926,690)
-----------
NET ASSETS - 100.0% $44,109,935
-----------
-----------
</TABLE>
(1) Non-income producing security.
(2) The repurchase agreement, dated 4/30/96, with a repurchase price of
$1,016,134, is collateralized by a $935,000 United States Treasury Note,
7.875%, 11/15/04.
See notes to financial statements.
9
WSIS SERIES TRUST
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WERTHEIM SMALL CAPITALIZATION VALUE FUND
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SCHEDULE OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
COMMON STOCKS
AEROSPACE - (6.2%)
57,000 Whittaker Corporation (1) 1,296,750
108,800 Wyman Gordon Company (1) 1,972,000
-----------
3,268,750
APPAREL & TEXTILES - (1.9%)
46,000 Fieldcrest Cannon, Incorporated (1) 983,250
-----------
BANKS - (6.0%)
92,000 Hibernia Corporation 943,000
26,000 Peoples Heritage Financial Group,
Incorporated 542,750
58,000 Roosevelt Financial Group, Incorporated 1,116,500
50,000 Sovereign Bancorp, Incorporated 556,250
-----------
3,158,500
BUSINESS SERVICES - (6.4%)
53,000 Jacobs Engineering Group, Incorporated
(1) 1,470,750
48,000 Keane, Incorporated (1) 1,890,000
-----------
3,360,750
CHEMICALS - (6.4%)
11,400 Carbide/Graphite Group, Incorporated (1) 202,350
94,000 Crompton & Knowles Corporation 1,445,250
45,000 Om Group Incorporated 1,715,625
-----------
3,363,225
COMPUTERS & BUSINESS
EQUIPMENT - (5.9%)
106,000 Data General Corporation (1) 1,629,750
53,000 Stratus Computer, Incorporated (1) 1,490,625
-----------
3,120,375
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
CONSUMER ELECTRONICS - (2.2%)
24,400 Harman International Industries,
Incorporated 1,152,900
-----------
DRUGS & HEALTH CARE - (2.9%)
38,000 R. P. Scherer Corporation (1) 1,501,000
-----------
ELECTRONICS - (10.9%)
68,500 Burr-Brown Corporation (1) 1,318,625
66,000 Dynatech Corporation (1) 1,699,500
165,000 LTX Corporation (1) 1,588,125
71,400 Pioneer Standard Electronics,
Incorporated 1,160,250
-----------
5,766,500
FOOD & BEVERAGES - (2.6%)
40,000 Universal Foods Corporation 1,370,000
-----------
GAS EXPLORATION - (3.6%)
78,000 Parker & Parsley Petroleum Company 1,920,750
-----------
HOTELS & RESTAURANTS - (2.6%)
49,000 Marcus Corporation 1,365,875
-----------
INDUSTRIAL MACHINERY - (3.0%)
92,500 Gerber Scientific, Incorporated 1,560,937
-----------
INSURANCE - (5.9%)
48,000 Protective Life Corporation 1,668,000
80,000 Western National Corporation 1,450,000
-----------
3,118,000
MANUFACTURING - (3.9%)
17,000 Aptargroup, Incorporated 639,625
51,000 Waters Corporation (1) 1,421,625
-----------
2,061,250
MEDICAL PRODUCTS - (2.9%)
57,500 Gelman Sciences, Incorporated (1) 1,530,938
-----------
</TABLE>
See notes to financial statements.
10
WSIS SERIES TRUST
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WERTHEIM SMALL CAPITALIZATION VALUE FUND
- ------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
COMMON STOCKS
OFFICE FURNISHINGS &
SUPPLIES - (2.2%)
61,500 New England Business Service,
Incorporated 1,153,125
-----------
PETROLEUM SERVICES - (2.2%)
34,000 Input/Output, Incorporated (1) 1,181,500
-----------
PUBLISHING - (2.5%)
150,000 Interleaf, Incorporated (1) 1,293,750
-----------
REAL ESTATE - (1.4%)
29,000 Beacon Properties Corporation 743,125
-----------
RETAIL TRADE - (4.2%)
42,000 Donnkenny, Incorporated (1) 834,750
47,000 TJX Companies, Incorporated 1,386,500
-----------
2,221,250
SOFTWARE - (5.7%)
28,000 Continuum, Incorporated (1) 1,596,000
87,000 Symantec Corporation (1) 1,402,875
-----------
2,998,875
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
TRANSPORTATION - (3.0%)
19,000 Wisconsin Central Transport Corporation
(1) 1,605,500
-----------
TOTAL COMMON STOCKS
(Cost $37,280,570) - 94.5% 49,800,125
-----------
<CAPTION>
Principal
Amount $
---------
<C> <S> <C>
SHORT TERM INVESTMENT
REPURCHASE AGREEMENT - (5.6%)
2,967,000 State Street Bank and Trust Company
4.750% 05/01/1996 (2) 2,967,000
-----------
TOTAL SHORT TERM INVESTMENT
(Cost $2,967,000) - 5.6% 2,967,000
-----------
TOTAL INVESTMENTS
(Cost $40,247,570) - 100.1% 52,767,125
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS -
(0.1)% (65,066)
-----------
NET ASSETS - 100.0% $52,702,059
-----------
-----------
</TABLE>
(1) Non-income producing security.
(2) The repurchase agreement, dated 4/30/96, with a repurchase price of
$2,967,391 is collateralized by a $2,725,000 United States Treasury Note,
7.875%, 11/15/04.
See notes to financial statements.
11
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WERTHEIM HIGH YIELD INCOME FUND
- ------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ Value $
--------- -----------
<C> <S> <C>
CORPORATE BONDS
BASIC INDUSTRY - (5.5%)
550,000 Carbide/Graphite Group, Incorporated
11.500% 09/01/2003 594,000
550,000 Forecast Group
11.375% 12/15/2000 363,000
-----------
957,000
CABLE AND MEDIA - (21.4%)
600,000 CAI Wireless Systems, Incorporated
12.250% 09/15/2002 628,500
450,000 Comcast Corporation
9.500% 01/15/2008 454,500
575,000 Diamond Cable Communications Corporation
(1)
11.490% 09/30/2004 418,313
600,000 Echostar Communications Corporation (1)
11.490% 06/01/2004 447,000
725,000 Heartland Wireless Commerce,
Incorporated
13.000% 04/15/2003 804,750
585,000 Videotron Group Limited
10.625% 02/15/2005 621,562
350,000 Young Broadcasting, Incorporated
9.000% 01/15/2006 325,500
-----------
3,700,125
CONSUMER/NON-DURABLES - (2.8%)
475,000 Hills Stores Company (2)
12.500% 07/01/2003 489,250
-----------
<CAPTION>
Principa l
Amount $ Value $
--------- -----------
<C> <S> <C>
ENERGY - (9.0%)
500,000 Energy Ventures, Incorporated
10.250% 03/15/2004 521,875
450,000 Flores & Rucks, Incorporated
13.500% 12/01/2004 517,500
500,000 Plains Resources, Incorporated
10.250% 03/15/2006 510,000
-----------
1,549,375
MANUFACTURING - (10.4%)
500,000 Dell Computer Corporation
11.000% 08/15/2000 538,750
550,000 Guess, Incorporated
9.500% 08/15/2003 534,875
675,000 Schuller International Group,
Incorporated
10.875% 12/15/2004 732,375
-----------
1,806,000
SERVICES - (15.9%)
450,000 Abbey Healthcare Group, Incorporated
9.500% 11/01/2002 468,000
750,000 Grand Casinos, Incorporated
10.125% 12/01/2003 785,625
600,000 Host Marriott Travel Plazas,
Incorporated
9.500% 05/15/2005 583,500
365,000 Presidential Life Corporation
9.500% 12/15/2000 376,863
650,000 Santa Fe Hotel, Incorporated
11.000% 12/15/2000 533,000
-----------
2,746,988
</TABLE>
See notes to financial statements.
12
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WERTHEIM HIGH YIELD INCOME FUND
- ------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ Value $
--------- -----------
<C> <S> <C>
CORPORATE BONDS
TRANSPORTATION - (13.1%)
400,000 CHC Helicopter Corporation
11.500% 07/15/2002 381,000
675,000 Northwest Airlines Trust
13.875% 06/21/2008 799,875
650,000 Sabreliner Corporation
12.500% 04/15/2003 617,500
425,000 Sea Containers Limited Series B
12.500% 12/01/2004 463,250
-----------
2,261,625
UTILITIES - (17.6%)
650,000 Brooks Fiber Properties (1) (2)
11.850% 03/01/2006 359,125
375,000 Intermedia Communications of Florida,
Incorporated
13.500% 06/01/2005 419,062
650,000 Mobile Telecommunication Tech
Corporation
13.500% 12/15/2002 680,875
350,000 Nextlink Communications (2)
12.500% 04/15/2006 354,375
550,000 Paging Network, Incorporated
8.875% 02/01/2006 529,375
825,000 PanAmSat Corporation (1)
9.710% 08/01/2003 709,500
-----------
3,052,312
-----------
TOTAL CORPORATE BONDS
(Cost $16,151,375) - 95.7% 16,562,675
-----------
<CAPTION>
SHARES VALUE $
--------- -----------
<C> <S> <C>
WARRANT
TRANSPORTATION - (0.0%)
340 Sabreliner Corporation (2) 1,743
-----------
TOTAL WARRANT
(Cost $2,289) - 0.0% 1,743
-----------
<CAPTION>
Principal
Amount $
---------
<C> <S> <C>
SHORT TERM INVESTMENT
REPURCHASE AGREEMENT - (1.4%)
243,000 State Street Bank and Trust Company
4.750% 05/01/1996 (3) 243,000
-----------
TOTAL SHORT TERM INVESTMENT
(Cost $243,000) - 1.4% 243,000
-----------
TOTAL INVESTMENTS
(Cost $16,396,664) - 97.1% 16,807,418
OTHER ASSETS LESS LIABILITIES - 2.9% 493,891
-----------
NET ASSETS - 100.0% $17,301,309
-----------
-----------
</TABLE>
(1) Zero coupon bond. Coupon amount represents the yield to maturity.
(2) Pursuant to Rule 144A of the Securities Act of 1933, these securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. At April 30, 1996, these securities aggregated
$1,204,493, or 7% of the net assets of the Fund.
(3) The repurchase agreement, dated 4/30/96, with a repurchase price of
$243,032 is collateralized by a $225,000 United States Treasury Note,
7.875%, 11/15/04.
See notes to financial statements.
13
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WERTHEIM INVESTMENT GRADE INCOME FUND
- ------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
GOVERNMENT AND
AGENCY SECURITIES
COLLATERALIZED MORTGAGE
OBLIGATIONS - (0.9%)
250,000 Federal Home Loan Mortgage Corporation
6.000% 05/15/2008 237,810
-----------
FEDERAL AGENCIES - (2.5%)
700,000 Federal Home Loan Bank Consolidated
Discount Notes
6.225% 10/24/2005 664,237
-----------
FEDERALLY CHARTERED - (5.7%)
Federal National Mortgage Association
500,000 6.320% 12/23/2003 499,645
330,000 6.360% 08/16/2000 327,766
725,000 6.400% 09/27/2005 696,768
-----------
1,524,179
MORTGAGE PASS-THROUGH
SECURITIES - (5.0%)
700,000 Federal National Mortgage Association
7.000% 05/31/2026 (1) 681,078
690,975 Government National Mortgage Association
6.500% 05/15/2009 674,350
-----------
1,355,428
U.S. GOVERNMENT
SECURITIES - (39.3%)
United States Treasury Notes
200,000 5.000% 02/15/1999 194,068
750,000 5.250% 01/31/2001 715,658
615,000 5.500% 11/15/1998 605,572
750,000 5.625% 02/15/2006 695,243
200,000 6.000% 08/31/1997 200,258
1,990,000 6.125% 05/15/1998 (2) 1,992,746
400,000 6.125% 07/31/2000 396,060
415,000 6.250% 05/31/2000 413,203
1,250,000 6.500% 08/15/2005 1,232,750
1,250,000 7.250% 08/15/2004 1,294,600
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
U.S. GOVERNMENT
SECURITIES - (CONTINUED)
900,000 7.375% 11/15/1997 918,423
950,000 7.500% 10/31/1999 984,703
330,000 8.250% 07/15/1998 344,454
500,000 United States Treasury Bond
7.125% 02/15/2023 502,605
-----------
10,490,343
-----------
TOTAL GOVERNMENT
AND AGENCY SECURITIES
(Cost $14,345,730) - 53.4% 14,271,997
-----------
CORPORATE BONDS
CHEMICALS - (0.8%)
225,000 Mallinckrodt Group, Incorporated
6.500% 11/15/2007 211,284
-----------
FINANCE & BANKING - (19.9%)
350,000 Associates Corporation North America
6.400% 10/20/2002 340,273
400,000 Chrysler Financial Corporation
7.310% 03/24/1998 406,632
500,000 Citicorp
7.125% 09/01/2005 496,075
500,000 Dean Witter Discover & Company
6.875% 03/01/2003 494,985
Ford Motor Credit Company
700,000 6.250% 12/08/2005 651,672
200,000 9.250% 06/15/1998 211,294
500,000 General Electric Capital Corporation
7.875% 12/01/2006 528,820
General Motors Acceptance Corporation
300,000 6.750% 07/18/2003 294,606
250,000 6.750% 10/06/2003 245,420
400,000 Household Finance Corporation
8.000% 08/01/2004 420,072
</TABLE>
See notes to financial statements.
14
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WERTHEIM INVESTMENT GRADE INCOME FUND
- ------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
CORPORATE BONDS
FINANCE & BANKING -
(CONTINUED)
100,000 NCNB Corporation
10.200% 07/15/2015 124,013
575,000 Pitney Bowes Credit Corporation
6.625% 06/01/2002 568,888
550,000 Sears Roebuck Acceptance Corporation
6.500% 10/04/2000 541,288
-----------
5,324,038
INDUSTRIALS - (6.5%)
235,000 American General Corporation
7.700% 10/15/1999 242,410
225,000 Eli Lilly & Company
8.125% 12/01/2001 240,345
650,000 Nabisco Incorporated
7.050% 07/15/2007 622,784
665,000 Pulte Corporation
7.000% 12/15/2003 628,611
-----------
1,734,150
INSURANCE - (1.4%)
400,000 Western National Corporation
7.125% 02/15/2004 387,284
-----------
LEISURE TIME - (4.5%)
650,000 Carnival Cruise Lines, Incorporated
6.150% 10/01/2003 608,796
575,000 Royal Caribbean Cruises Limited
8.250% 04/01/2005 586,161
-----------
1,194,957
OIL - (1.1%)
265,000 Chevron Corporation
8.110% 12/01/2004 280,731
-----------
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
TRANSPORTATION - (4.9%)
500,000 Burlington Northern Santa Fe
6.875% 02/15/2016 455,070
475,000 Federal Express Corporation
9.875% 04/01/2002 538,660
300,000 Southwest Airlines Company
7.875% 09/01/2007 307,746
-----------
1,301,476
-----------
TOTAL CORPORATE BONDS
(Cost $10,417,840) - 39.1% 10,433,920
-----------
SHORT TERM INVESTMENT
REPURCHASE AGREEMENT - (8.6%)
2,298,000 State Street Bank and Trust Company
4.750% 05/01/1996 (3) 2,298,000
-----------
TOTAL SHORT TERM INVESTMENT
(Cost $2,298,000) - 8.6% 2,298,000
-----------
TOTAL INVESTMENTS
(Cost $27,061,570) - 101.1% 27,003,917
LIABILITIES IN EXCESS OF
OTHER ASSETS - (1.1)% (294,577)
-----------
NET ASSETS - 100.0% $26,709,340
-----------
-----------
</TABLE>
(1) Settlement of mortgage backed security is on a delayed delivery basis with
the final maturity to be announced (TBA) in the future. At April 30, 1996,
the cost of the Fund's forward commitment purchase was $682,712.
(2) A portion of this security has been segregated by the Custodian Bank to
cover the forward commitment purchase.
(3) The repurchase agreement, dated 4/30/96, with a repurchase price of
$2,298,303 is collateralized by a $2,110,000 United States Treasury Note,
7.875%, 11/15/04.
See notes to financial statements.
15
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WERTHEIM SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
ASSET BACKED SECURITY
AUTO LOAN - (0.8%)
254,364 General Motors Acceptance Corporation
Grantor Trust
4.150% 03/16/1998 254,093
-----------
TOTAL ASSET BACKED SECURITY
(Cost $253,925) - 0.8% 254,093
-----------
GOVERNMENT AND
AGENCY SECURITIES
COLLATERALIZED MORTGAGE
OBLIGATIONS - (0.1%)
32,455 Federal National Mortgage Association
REMIC (1)
3.650% 07/25/2009 32,342
-----------
FEDERAL AGENCIES - (13.9%)
1,500,000 Federal Farm Credit Bank Discount Notes
5.150% 10/10/1996 1,465,643
1,500,000 Federal Home Loan Bank Consolidated
Discount Notes
5.070% 07/15/1996 1,484,375
1,500,000 Tennessee Valley Authority Discount
Notes
5.020% 07/26/1996 1,482,083
-----------
4,432,101
FEDERALLY CHARTERED - (18.6%)
Federal National Mortgage Association
Discount Notes
1,500,000 4.830% 08/09/1996 1,479,216
1,500,000 4.980% 07/26/1996 1,482,083
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
Federal National Mortgage Association
Discount Notes
(continued)
1,500,000 5.170% 10/11/1996 1,465,430
1,500,000 5.380% 05/02/1996 1,499,776
-----------
5,926,505
U.S. GOVERNMENT
SECURITIES - (9.3%)
1,500,000 United States Treasury Bill
4.940% 06/27/1996 1,488,267
1,500,000 United States Treasury Note
5.125% 02/28/1998 1,476,735
-----------
2,965,002
-----------
TOTAL GOVERNMENT
AND AGENCY SECURITIES
(Cost $13,369,591) - 41.9% 13,355,950
-----------
CORPORATE BONDS
ENTERTAINMENT - (4.6%)
1,500,000 Disney, Walt Company
5.300% 10/11/1996 1,464,548
-----------
MEDICAL PRODUCTS - (4.7%)
1,500,000 Merck & Company, Incorporated
7.750% 05/01/1996 1,500,000
-----------
OIL - (4.7%)
1,500,000 Mobil Corporation
6.500% 02/15/1997 1,503,315
-----------
TOTAL CORPORATE BONDS
(Cost $4,481,211) - 14.0% 4,467,863
-----------
</TABLE>
See notes to financial statements.
16
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WERTHEIM SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
COMMERCIAL PAPER
FINANCIAL SERVICES - (37.4%)
1,500,000 American Express Company
5.420% 05/17/1996 1,496,387
1,500,000 Ford Motor Credit Company
5.280% 06/03/1996 1,492,740
1,500,000 General Electric Capital Corporation
5.320% 11/20/1996 1,455,848
1,500,000 General Motors Acceptance Corporation
5.300% 06/18/1996 1,489,400
1,500,000 IBM Credit Corporation
5.340% 05/09/1996 1,498,220
1,500,000 John Deere Capital Corporation
5.420% 05/10/1996 1,497,967
1,500,000 Norwest Financial, Incorporated
5.250% 08/26/1996 1,474,553
1,500,000 Prudential Funding Corporation
5.350% 06/11/1996 1,490,860
-----------
TOTAL COMMERCIAL PAPER
(Cost $11,894,982) - 37.4% 11,895,975
-----------
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
OTHER SHORT TERM
INVESTMENT
REPURCHASE AGREEMENT - (6.0%)
1,898,000 State Street Bank and Trust Company
4.750% 05/01/1996 (2) 1,898,000
-----------
TOTAL OTHER SHORT TERM INVESTMENT
(Cost $1,898,000) - 6.0% 1,898,000
-----------
TOTAL INVESTMENTS
(Cost $31,897,709) - 100.1% 31,871,881
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.1)% (25,890)
-----------
NET ASSETS - 100.0% $31,845,991
-----------
-----------
</TABLE>
(1) Collateralized mortgage obligation. The period of time that the Fund
expects to receive all scheduled principal payments may be shorter than the
stated maturity of the obligation.
(2) The repurchase agreement, dated 4/30/96, with a repurchase price of
$1,898,250 is collateralized by a $1,745,000 United States Treasury Note,
7.875%, 11/15/04.
See notes to financial statements.
17
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
SMALL INVESTMENT
EQUITY CAPITALIZATION HIGH YIELD GRADE SHORT-TERM
VALUE VALUE INCOME INCOME INVESTMENT
FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at value -
Note 2................................... $45,036,625 $52,767,125 $16,807,418 $27,003,917 $31,871,881
Cash....................................... 708 546 234 88 16
Dividends receivable....................... 36,177 6,670 0 0 0
Interest receivable........................ 134 392 453,339 416,795 92,380
Receivable for securities sold............. 446,775 881,606 723,802 0 0
Receivable for trust shares sold........... 8,912 8,912 0 0 22,619
Deferred organizational costs.............. 30,277 30,277 30,277 30,617 28,183
Prepaid expenses........................... 10,592 11,052 9,322 9,326 10,527
Due from Schroder Wertheim Investment
Services, Inc. - Note 3.................. 0 0 4,775 1,397 0
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS........................... 45,570,200 53,706,580 18,029,167 27,462,140 32,025,606
LIABILITIES
Payable for securities purchased........... 590,865 326,757 658,181 682,712 0
Payable for trust shares redeemed.......... 780,229 578,409 0 1,950 117,492
Advisory fee payable - Note 3.............. 30,388 40,068 13,630 12,311 9,392
Accounts payable and accrued expenses...... 58,783 59,287 51,669 51,399 52,731
Dividends payable.......................... 0 0 4,378 4,428 0
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES...................... 1,460,265 1,004,521 727,858 752,800 179,615
----------- ----------- ----------- ----------- -----------
NET ASSETS............................. $44,109,935 $52,702,059 $17,301,309 $26,709,340 $31,845,991
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
NET ASSETS
Capital paid-in............................ $36,165,186 $37,536,875 $18,296,559 $26,504,731 $31,965,294
Undistributed (distributions in excess of)
net investment income.................... 120,259 (79,222 ) (95,904) 0 35,213
Accumulated net realized gain (loss) on
investments.............................. 1,431,321 2,724,851 (1,310,100) 262,262 (128,688)
Net unrealized appreciation (depreciation)
of investments........................... 6,393,169 12,519,555 410,754 (57,653 ) (25,828)
----------- ----------- ----------- ----------- -----------
NET ASSETS............................. $44,109,935 $52,702,059 $17,301,309 $26,709,340 $31,845,991
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Net asset value, offering and redemption
price per share.......................... $ 11.64 $ 13.23 $ 8.74 $ 9.54 $ 9.85
Total shares outstanding at end of
period................................... 3,789,318 3,984,579 1,980,144 2,799,270 3,231,643
Cost of securities......................... $38,643,456 $40,247,570 $16,396,664 $27,061,570 $31,897,709
</TABLE>
See notes to financial statements.
18
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
SMALL
EQUITY CAPITALIZATION HIGH YIELD INVESTMENT SHORT-TERM
VALUE VALUE INCOME GRADE INCOME INVESTMENT
FUND FUND FUND FUND FUND
---------- -------------- ---------- ------------ ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income............................ $ 442,873 $ 209,335 $ 0 $ 0 $ 0
Interest income............................ 47,231 62,197 990,700 870,397 925,096
---------- -------------- ---------- ------------ ---------
TOTAL INCOME........................... 490,104 271,532 990,700 870,397 925,096
EXPENSES
Investment advisory fees - Note 3.......... 159,745 235,822 87,158 66,627 66,353
Administrative fees........................ 34,338 39,444 17,523 22,772 27,534
Custodian fees............................. 23,284 23,583 22,388 21,193 19,699
Transfer agent fees........................ 14,664 14,664 14,664 14,664 14,664
Audit fees................................. 8,465 8,465 8,465 8,465 8,465
Legal fees................................. 5,975 5,975 5,975 5,975 5,975
Printing expenses.......................... 3,984 3,984 3,984 3,984 1,992
Trustees fees.............................. 3,784 3,784 3,784 3,784 3,784
Organizational expenses.................... 4,803 4,803 4,803 4,803 4,803
Registration fees.......................... 5,845 8,136 4,451 5,223 4,032
Insurance.................................. 1,038 1,347 551 623 921
Other...................................... 0 747 747 747 747
Expenses borne by Schroder Wertheim
Investment Services, Inc. - Note 3....... 0 0 (24,389) (9,617) 0
---------- -------------- ---------- ------------ ---------
TOTAL EXPENSES......................... 265,925 350,754 150,104 149,243 158,969
---------- -------------- ---------- ------------ ---------
NET INVESTMENT INCOME (LOSS)........... 224,179 (79,222) 840,596 721,154 766,127
---------- -------------- ---------- ------------ ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments.... 1,530,049 2,730,626 272,342 269,501 (1,951)
Change in net unrealized appreciation
(depreciation) of investments............ 3,691,920 7,658,463 (100,324) (1,053,865) (40,071)
---------- -------------- ---------- ------------ ---------
NET GAIN (LOSS)............................ 5,221,969 10,389,089 172,018 (784,364) (42,022)
---------- -------------- ---------- ------------ ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................. $5,446,148 $10,309,867 $1,012,614 $ (63,210) $724,105
---------- -------------- ---------- ------------ ---------
---------- -------------- ---------- ------------ ---------
</TABLE>
See notes to financial statements.
19
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
APRIL 30, 1996
<TABLE>
<CAPTION>
SMALL CAPITALIZATION
EQUITY VALUE FUND VALUE FUND
--------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/96 10/31/95 4/30/96 10/31/95
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income (loss)............. $ 224,179 $ 422,381 $ (79,222) $ (105,500)
Net realized gain (loss) on
investments............................ 1,530,049 2,987,577 2,730,626 226,635
Change in net unrealized appreciation
(depreciation) of investments.......... 3,691,920 2,957,170 7,658,463 4,156,231
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations.............. 5,446,148 6,367,128 10,309,867 4,277,366
Net equalization (debits) credits.......... 0 0 0 0
Dividends and distributions to
Shareholders:
From net investment income............... (443,762) (217,293) 0 (11,130)
From net realized capital gains.......... (2,980,635) 0 (28,661) 0
Net increase (decrease) from trust share
transactions............................. 3,999,834 10,629,016 (5,508,101) 22,469,797
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE)............ 6,021,585 16,778,851 4,773,105 26,736,033
Net Assets
Beginning of period...................... 38,088,350 21,309,499 47,928,954 21,192,921
------------ ------------ ------------ ------------
End of period (a)........................ $ 44,109,935 $ 38,088,350 $ 52,702,059 $ 47,928,954
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
(a) Including undistributed (distributions
in excess of) net investment income...... $ 120,259 $ 339,842 $ (79,222) $ 0
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
See notes to financial statements.
20
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
APRIL 30, 1996
<TABLE>
<CAPTION>
HIGH YIELD INVESTMENT GRADE SHORT-TERM
INCOME FUND INCOME FUND INVESTMENT FUND
------------------------ ------------------------ ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/96 10/31/95 4/30/96 10/31/95 4/30/96 10/31/95
----------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
$ 840,596 $ 1,882,506 $ 721,154 $ 1,221,525 $ 766,127 $ 1,616,439
272,342 (1,236,881) 269,501 396,597 (1,951) (76,414)
(100,324) 1,163,750 (1,053,865) 1,226,836 (40,071) 104,005
----------- ----------- ----------- ----------- ----------- -----------
1,012,614 1,809,375 (63,210) 2,844,958 724,105 1,644,030
(6,402) 7,770 (410) 17,649 0 0
(929,669) (1,875,254) (716,144) (1,238,821) (820,211) (1,617,411)
0 0 (306,566) 0 0 0
(3,264,179) 4,591,461 4,091,707 9,174,957 (1,993,781) 3,137,885
----------- ----------- ----------- ----------- ----------- -----------
(3,187,636) 4,533,352 3,005,377 10,798,743 (2,089,887) 3,164,504
20,488,945 15,955,593 23,703,963 12,905,220 33,935,878 30,771,374
----------- ----------- ----------- ----------- ----------- -----------
$17,301,309 $20,488,945 $26,709,340 $23,703,963 $31,845,991 $33,935,878
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
$ (95,904) $ (429) $ 0 $ (4,600) $ 35,213 $ 89,297
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements.
21
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SMALL CAPITALIZATION
EQUITY VALUE FUND VALUE FUND
--------------------------------------- ---------------------------------------
SIX MONTHS YEAR PERIOD SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, APRIL 30, OCTOBER 31, OCTOBER 31,
1996 (1) 1995 1994(2) 1996 (1) 1995 1994(2)
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 11.12 $ 9.45 $ 10.00 $ 10.77 $ 9.77 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) (5)......... 0.06 0.11 0.06 (0.02) (0.03) 0.00
Net Realized and Unrealized Gain (Loss)
on Investments......................... 1.43 1.63 (0.61) 2.49 1.03 (0.23)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS......... 1.49 1.74 (0.55) 2.47 1.00 (0.23)
----------- ----------- ----------- ----------- ----------- -----------
LESS DISTRIBUTIONS:
From Net Investment Income............... (0.13) (0.07) 0.00 0.00 0.00 0.00
In Excess of Net Investment Income....... 0.00 0.00 0.00 0.00 0.00 0.00
From Net Realized Capital Gains.......... (0.84) 0.00 0.00 (0.01) 0.00 0.00
Tax Return of Capital.................... 0.00 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total Distributions...................... (0.97) (0.07) 0.00 (0.01) 0.00 0.00
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE AT END OF PERIOD............. $ 11.64 $ 11.12 $ 9.45 $ 13.23 $ 10.77 $ 9.77
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
TOTAL RETURN................................. 14.07%(6) 18.63% (5.50)%(6) 22.91%(6) 10.27% (2.30)%(6)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)...... $44,110 $38,088 $21,309 $52,702 $47,929 $21,193
Ratio of Operating Expenses to Average
Net Assets (5)......................... 1.25%(7) 1.40% 1.30%(7) 1.41%(7) 1.56% 1.45%(7)
Ratio of Net Investment Income to Average
Net Assets............................. 1.05%(7) 1.27% 1.37%(7) (0.32)%(7) (0.29)% 0.17%(7)
Portfolio Turnover Rate.................. 25.76% 83.15% 102.56% 37.34% 45.74% 18.53%
Average Commission per Share (8)......... $ 0.06 - - $ 0.06 - -
</TABLE>
(1) Unaudited
(2) For the period February 16, 1994 (commencement of investment operations)
through October 31, 1994.
(3) For the period February 22, 1994 (commencement of investment operations)
through October 31, 1994.
(4) For the period January 11, 1994 (commencement of investment operations)
through October 31, 1994.
Notes to Financial Highlights continued on page 23.
See notes to financial statements.
22
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
HIGH YIELD INVESTMENT GRADE SHORT-TERM
INCOME FUND INCOME FUND INVESTMENT FUND
--------------------------------------- --------------------------------------- ---------------------------------------
SIX MONTHS YEAR PERIOD SIX MONTHS YEAR PERIOD SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, APRIL 30, OCTOBER 31, OCTOBER 31, APRIL 30, OCTOBER 31, OCTOBER 31,
1996 (1) 1995 1994 (2) 1996 (1) 1995 1994 (3) 1996 (1) 1995 1994 (4)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 8.72 $ 8.79 $ 10.00 $ 9.93 $ 9.14 $ 10.00 $ 9.88 $ 9.88 $ 10.00
0.38 0.84 0.48 0.27 0.59 0.34 0.23 0.49 0.30
0.07 (0.07) (1.14) (0.28) 0.79 (0.83) (0.02) 0.00 (0.12)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
0.45 0.77 (0.66) (0.01) 1.38 (0.49) 0.21 0.49 0.18
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(0.43) (0.84) (0.47) (0.26) (0.59) (0.34) (0.24) (0.49) (0.30)
0.00 0.00 (0.01) 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 (0.12) 0.00 0.00 0.00 0.00 0.00
0.00 0.00 (0.07) 0.00 0.00 (0.03) 0.00 0.00 0.00
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(0.43) (0.84) (0.55) (0.38) (0.59) (0.37) (0.24) (0.49) (0.30)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 8.74 $ 8.72 $ 8.79 $ 9.54 $ 9.93 $ 9.14 $ 9.85 $ 9.88 $ 9.88
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
5.22%(6) 9.16% (6.60)%(6) (0.19)%(6) 15.62% (4.90)%(6) 2.18%(6) 5.02% 1.83%(6)
$17,301 $20,489 $15,956 $26,709 $23,704 $12,905 $31,846 $33,936 $30,771
1.55%(7) 1.48% 1.30%(7) 1.12%(7) 1.06% 0.87%(7) 0.96%(7) 0.95% 0.78%(7)
8.62%(7) 9.67% 9.67%(7) 5.41%(7) 6.35% 6.39%(7) 4.62%(7) 4.91% 4.48%(7)
56.84% 149.58% 59.30% 27.37% 113.50% 115.63% 121.65% 27.86% 71.38%
- - - - - - - - -
</TABLE>
(5) Net Investment Income is after reimbursement of certain expenses by Schroder
Wertheim Investment Services, Inc. (See Note 3 to the Trust's financial
statements.) Had the Investment Adviser not undertaken to pay or reimburse
expenses related to the Funds, the Net Investment Income per share and Ratio
of Operating Expenses to Average Net Assets would have been as follows:
Wertheim Equity Value Fund: 1996 - $0.06 and 1.25%, 1995 - $0.11 and 1.45%;
1994 - $0.02 and 2.17%; Wertheim Small Capitalization Value Fund: 1996 -
($0.02) and 1.41%, 1995 - ($0.03) and 1.62%; 1994 - ($0.04) and 3.15%;
Wertheim High Yield Income Fund: 1996 - $0.37 and 1.80%, 1995 - $0.80 and
1.96%; 1994 - $0.44 and 3.59%, Wertheim Investment Grade Income Fund: 1996 -
$0.26 and 1.19%, 1995 - $0.56 and 1.50%; 1994 - $0.21 and 3.98%; and
Wertheim Short-Term Investment Fund: 1996 - $0.23 and 0.96%, 1995 - $0.47
and 1.08%; 1994 -$0.24 and 1.66%, respectively.
(6) Not annualized.
(7) Annualized.
(8) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for trades on which
commissions are charged. This rate does not reflect mark-ups, mark-downs or
spreads on shares traded on a principal basis.
See notes to financial statements.
23
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (UNAUDITED)
NOTE 1 -- ORGANIZATION
WSIS Series Trust (the "Trust") is a diversified open-end series management
investment company registered under the Investment Company Act of 1940, as
amended. The Trust was organized as a business trust under the laws of The
Commonwealth of Massachusetts on May 6, 1993. The Trust has an unlimited number
of authorized shares, which are divided into five separate investment portfolios
- -- Wertheim Equity Value Fund, Wertheim Small Capitalization Value Fund,
Wertheim High Yield Income Fund, Wertheim Investment Grade Income Fund and
Wertheim Short-Term Investment Fund (collectively, the "Funds").
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds which are in conformity with generally accepted accounting principles.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
VALUATION OF INVESTMENTS: Equity securities traded on a national securities
exchange are valued at their last reported sale price on the principal exchange;
or, if traded in the over-the-counter market or on a national securities
exchange for which no sales took place on the day of valuation, at the last
available bid price. Debt securities are valued on the basis of valuations
provided by a pricing service that determines valuations for normal
institutional size trading units of debt securities, or through obtaining
independent quotes from market makers. Short-term debt instruments with a
remaining maturity of 60 days or less are valued at amortized cost, which
approximates market value. Securities for which current market quotations are
not readily available are valued at fair value as determined in accordance with
procedures approved by the Trustees.
REPURCHASE AGREEMENTS: Funds enter into repurchase agreements with approved
institutions and are collateralized by U.S. Government securities. The Trust's
custodian takes possession of the underlying securities, the market value of
which at the time of purchase at least equals the resale price, principal amount
plus interest, of the repurchase transaction. To the extent that any repurchase
transaction exceeds one business day, the value of the underlying securities is
marked-to-market on a daily basis to ensure the adequacy of the underlying
securities. Schroder Wertheim Investment Services, Inc. ("Schroder"), investment
adviser to the Trust, is responsible for determining that the value of the
underlying securities is at all times at least equal to the resale price. In the
event of default by the seller to repurchase the securities, a Fund could
realize a loss on the sale of the underlying securities to the extent that the
24
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
proceeds of sale, including accrued interest, is less than the resale price of
the repurchase agreement. If the seller should be involved in bankruptcy or
insolvency proceedings, realization and/or retention of the underlying
securities, or proceeds may be subject to legal proceedings.
INVESTMENT TRANSACTIONS: Investment security transactions are recorded as of
trade date. Realized gains and losses on sales of investments are determined on
the basis of identified cost.
FORWARD COMMITMENTS: Each Fund may enter into contracts to purchase securities
for a fixed price at a future date beyond customary settlement time ("forward
commitments") if the Fund holds, and maintains until the settlement date in a
segregated account, cash or high-grade debt obligations in an amount sufficient
to meet the purchase price, or if the Fund enters into offsetting contracts for
the forward sale of other securities it owns. Forward commitments may be
considered securities in themselves, and involve a risk of loss if the value of
the security to be purchased declines prior to the settlement date, which risk
is in addition to the risk of decline in the value of the Fund's other assets.
INVESTMENT INCOME: Dividend income is recorded on the ex-dividend date.
Interest income is recorded on an accrual basis.
EXPENSES: Expenses are recorded on an accrual basis. Expenses not directly
attributed to a specific Fund are allocated among the Funds in such a manner as
deemed equitable to each.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders from net
investment income are declared and distributed at least annually for Wertheim
Equity Value Fund and Wertheim Small Capitalization Value Fund; declared and
distributed monthly for Wertheim High Yield Income Fund and Wertheim Investment
Grade Income Fund; and declared daily and distributed monthly for Wertheim
Short-Term Investment Fund. Distributions from net realized capital gains, if
any, are declared and distributed at least annually. Distributions are recorded
on the ex-dividend date.
DEFERRED ORGANIZATION COSTS: Costs and expenses of the Trust paid by Schroder
and its affiliates in connection with the organization of the Trust and the
initial public offering of its shares have been deferred by the Trust and are
being amortized on a straight-line basis from the date operations commenced over
a period that it is expected a benefit will be realized, not to exceed five
years.
Schroder has agreed with respect to each of the Funds that, if any of the
initial shares of a Fund are redeemed during such amortization period by any
holder thereof, the redemption proceeds will be reduced for any unamortized
organization expenses in the same ratio as the number of shares redeemed bears
to the number of initial shares held at the time of redemption.
EQUALIZATION: Wertheim High Yield Income Fund and Wertheim Investment Grade
Income Fund follow an accounting practice known as equalization by which a
portion of the proceeds from sales and costs of redemptions of Fund shares
equivalent, on a
25
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
per share basis, to the amount of undistributed net investment income on the
date of the transaction is credited or charged to undistributed net investment
income. As a result, undistributed net investment income per share is unaffected
by sales and redemptions of the above listed Fund's shares.
FEDERAL INCOME TAXES: It is the policy of the Trust for each Fund to qualify as
a "regulated investment company" by complying with the requirements of
Subchapter M of the Internal Revenue Code of 1986, as amended. By so qualifying,
the Funds would not be subject to federal income taxes to the extent that, among
other things, they distribute substantially all of their taxable income,
including realized net capital gains, for the fiscal year. In addition, by
distributing during each calendar year substantially all of their net investment
income, net capital gains and certain other amounts, if any, the Funds will not
be subject to a federal excise tax.
As of October 31, 1995, realized capital loss carryforwards, for Federal income
tax purposes, available to be used to offset future realized capital gains are
as follows: Wertheim High Yield Income Fund has $1,582,442 ($247,397 expiring on
October 31, 2002 and $1,335,045 expiring on October 31, 2003); and Wertheim
Short-Term Investment Fund has $126,737 ($4,524 expiring on October 31, 2002 and
$122,213 expiring on October 31, 2003).
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for market discount,
losses deferred due to wash sales and excise tax regulations.
NOTE 3 -- INVESTMENT ADVISORY FEES AND ADMINISTRATION AGREEMENT
The Trust has entered into an investment advisory agreement with Schroder. Under
the agreement, Schroder provides investment management services, and receives
for its services compensation monthly at the following annual rates based on
average daily net assets of each Fund taken separately: 0.75% for Wertheim
Equity Value Fund; 0.95% for Wertheim Small Capitalization Value Fund; 0.90% for
Wertheim High Yield Income Fund; 0.50% for Wertheim Investment Grade Income
Fund; and 0.40% for Wertheim Short-Term Investment Fund.
The Trust has also entered into an Administration Agreement with State Street
Bank and Trust Company ("State Street"). Under the Administration Agreement, the
Trust pays compensation to State Street at the following annual rates based on
the average daily net assets of each Fund taken separately: 0.08% of the first
$125 million of each Fund's average daily net assets, 0.06% of the next $125
million of each Fund's average daily net assets and 0.04% of each Fund's average
daily net assets in excess of $250 million, subject to certain minimum
requirements.
In order to limit the Funds' expenses during their start-up period, Schroder
voluntarily agreed to reduce its compensation and, if necessary, to pay certain
expenses of each of the Funds, until October 31, 1996, with respect to each of
the Funds to the extent that a Fund's expenses, other than Schroder's
compensation, brokerage, interest, taxes, deferred organizational expenses, and
extraordinary
26
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
expenses exceed the following annual rates: 0.80% of average daily net assets of
Wertheim Equity Value Fund; 0.75% of average daily net assets of Wertheim Small
Capitalization Value Fund; 0.65% of average daily net assets of Wertheim High
Yield Income Fund; 0.62% of average daily net assets of Wertheim Investment
Grade Income Fund; and 0.63% of average daily net assets of Wertheim Short-Term
Investment Fund. The Trust pays all expenses not assumed by Schroder, including
Trustees' fees, auditing, legal, custodial, and investor servicing and
shareholder reporting expenses.
NOTE 4 -- TRANSACTIONS WITH AFFILIATES
BROKERAGE COMMISSIONS: Brokerage commissions received by affiliates of the
Trust's investment adviser, from portfolio transactions conducted with the Funds
during the six months ended April 30, 1996, amounted to $720.
TRUSTEES' FEES: The Trust pays no compensation to Trustees who are employees of
Schroder. Trustees who are not Schroder employees receive an annual fee of
$5,000 and an additional fee of $1,500 for each Trustees' meeting attended.
NOTE 5 -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities for each Fund, for the six months ended April 30, 1996
were as follows:
<TABLE>
<CAPTION>
NON- NON-
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
PURCHASES PURCHASES SALES SALES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Wertheim Equity Value Fund........................ 1$4,435,999 $ 0 1$0,450,813 $ 0
Wertheim Small Capitalization Value Fund.......... 17,769,429 0 24,087,844 0
Wertheim High Yield Income Fund................... 10,300,846 0 12,706,529 0
Wertheim Investment Grade Income Fund............. 2,728,594 7,914,341 3,596,344 3,105,678
Wertheim Short-Term Investment Fund............... 3,029,355 3,466,094 1,696,285 2,240,505
</TABLE>
27
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
The identified cost for federal income tax purposes of investments owned by each
Fund and their respective gross unrealized appreciation and depreciation at
April 30, 1996 were as follows:
<TABLE>
<CAPTION>
IDENTIFIED GROSS UNREALIZED NET UNREALIZED
COST APPRECIATION (DEPRECIATION) APPRECIATION (DEPRECIATION)
-------------- ------------ -------------- ---------------------------
<S> <C> <C> <C> <C>
Wertheim Equity Value Fund.......... $ 38,643,456 $7,364,818 $ (971,649) $ 6,393,169
Wertheim Small Capitalization Value
Fund............................... 40,247,570 12,672,694 (153,139) 12,519,555
Wertheim High Yield Income Fund..... 16,396,664 598,941 (188,187) 410,754
Wertheim Investment Grade Income
Fund............................... 27,061,570 424,479 (482,132) (57,653)
Wertheim Short-Term Investment
Fund............................... 31,897,709 2,943 (28,771) (25,828)
</TABLE>
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at April 30, 1996.
NOTE 6 -- SHAREHOLDERS' TRANSACTIONS
Following is a summary of shareholder transactions for each Fund:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1996 October 31, 1995
Shares Dollars Shares Dollars
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
WERTHEIM EQUITY VALUE FUND
Shares sold......................................... 592,073 $ 6,793,307 2,234,169 $21,323,054
Shares issued to shareholders in reinvestment....... 314,407 3,383,017 23,861 216,153
Shares redeemed..................................... (542,586) (6,176,490) (1,087,443) (10,910,191)
--------- ----------- --------- -----------
Net increase........................................ 363,894 $ 3,999,834 1,170,587 $10,629,016
--------- ----------- --------- -----------
--------- ----------- --------- -----------
WERTHEIM SMALL CAPITALIZATION VALUE FUND
Shares sold......................................... 611,584 $ 7,210,604 3,098,020 $30,759,624
Shares issued to shareholders in reinvestment....... 2,425 28,367 1,129 10,971
Shares redeemed..................................... (1,077,909) (12,747,072) (820,811) (8,300,798)
--------- ----------- --------- -----------
Net increase........................................ (463,900) $(5,508,101) 2,278,338 $22,469,797
--------- ----------- --------- -----------
--------- ----------- --------- -----------
</TABLE>
28
WSIS SERIES TRUST
<PAGE>
- --------------------------------------------------------------------------------
WSIS SERIES TRUST
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1996 October 31, 1995
Shares Dollars Shares Dollars
--------- ----------- --------- -----------
WERTHEIM HIGH YIELD INCOME FUND
<S> <C> <C> <C> <C>
Shares sold......................................... 311,242 $ 2,753,783 1,003,992 $ 8,719,371
Shares issued to shareholders in reinvestment....... 102,329 898,403 201,685 1,754,861
Shares redeemed..................................... (783,120) (6,922,767) (671,847) (5,875,001)
Income equalization received........................ 0 6,402 0 (7,770)
--------- ----------- --------- -----------
Net increase........................................ (369,549) $(3,264,179) 533,830 $ 4,591,461
--------- ----------- --------- -----------
--------- ----------- --------- -----------
WERTHEIM INVESTMENT GRADE INCOME FUND
Shares sold......................................... 700,343 $ 6,964,501 1,636,204 $15,312,312
Shares issued to shareholders in reinvestment....... 99,285 982,742 124,830 1,193,295
Shares redeemed..................................... (388,510) (3,855,946) (785,028) (7,313,001)
Income equalization received........................ 0 410 0 (17,649)
--------- ----------- --------- -----------
Net increase........................................ 411,118 $ 4,091,707 976,006 $ 9,174,957
--------- ----------- --------- -----------
--------- ----------- --------- -----------
WERTHEIM SHORT-TERM INVESTMENT FUND
Shares sold......................................... 504,488 $ 4,978,951 2,016,637 $19,914,676
Shares issued to shareholders in reinvestment....... 82,644 815,136 162,019 1,599,931
Shares redeemed..................................... (789,257) (7,787,868) (1,860,847) (18,376,722)
--------- ----------- --------- -----------
Net increase........................................ (202,125) $(1,993,781) 317,809 $ 3,137,885
--------- ----------- --------- -----------
--------- ----------- --------- -----------
</TABLE>
NOTE 7 -- BENEFICIAL INTEREST
The following schedule shows the number of shareholders each owning 5% or more
of a Fund and the total percentage of the Fund held by such shareholders.
<TABLE>
<CAPTION>
5% or Greater Shareholders
Number % of Fund Held
------------- -----------------
<S> <C> <C>
Wertheim Equity Value Fund................................................... 2 26.64%
Wertheim Small Capitalization Value Fund..................................... 2 22.05%
Wertheim High Yield Income Fund.............................................. 4 39.48%
Wertheim Investment Grade Income Fund........................................ 3 39.69%
</TABLE>
29
WSIS SERIES TRUST
<PAGE>
(This page has been left blank intentionally)
30
WSIS SERIES TRUST
<PAGE>
INVESTMENT MANAGER
Schroder Wertheim Investment Services, Inc.
OFFICERS
E. William Smethurst, Jr., Chairman
Laura E. Luckyn-Malone, President
David Gibson, Vice President
Jane P. Lucas, Vice President
Mark J. Smith, Vice President
Catherine A. Mazza, Clerk
Robert Jackowitz, Treasurer
Barbara Gottlieb, Assistant Clerk
TRUSTEES
E. William Smethurst, Jr.
Peter S. Knight
David N. Dinkins
TRANSFER AND SHAREHOLDER SERVICING AGENT
Boston Financial Data Services, Inc.
CUSTODIAN
State Street Bank and Trust Company
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP
The information contained in this report is intended for the general
information of the shareholders of the Trust. This report is not authorized
for distribution to prospective investors unless preceded or accompanied by a
current Trust prospectus which contains important information concerning the
Trust.
31
WSIS SERIES TRUST
