<PAGE>
--------------------------------------------------------------------------------
W.P. STEWART & CO. GROWTH FUND, INC.
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
(UNAUDITED)
JUNE 30, 2000
<PAGE>
--------------------------------------------------------------------------------
W. P. STEWART & CO. GROWTH FUND, INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS AS OF JUNE 30, 2000
--------------------------------------------------------------------------------
MANAGEMENT COMMENTS
Year-to-date, your Fund has appreciated strongly against the market. Since
January the Fund's net asset value increased from $218.96 on December 31, 1999
to $234.80 on June 30, 2000. This represents a return of +7.2% while the S&P was
-0.4% for the same period. In a challenging environment your account made
significant progress during both the first and second quarters.
When looking at the negative performance of the market over the past 6 months,
it is easy to underestimate the volatile investment landscape. Consider that the
Federal Reserve has raised interest rates by a total of 1.75% in 6 increases
since June 1999. This "headwind" has compressed P/E ratios, precipitated a
long-expected shakeout within the Internet space, and raised concerns about
corporate earnings growth. We have used this resultant volatility to selectively
add high-quality and high-growth names to your portfolio. Some are new,
technology oriented companies, and some are in more traditional businesses that
utilize technology to improve their operations. Examples to date include Dell,
First Data, Gateway, EMC, Kohl's, and Viacom.
While it's apparent that Dell, Gateway, and EMC fully participate in the "new
economy", the connection is less obvious at First Data. First Data is the engine
of e-commerce, as credit cards are the primary currency of the Net.
Additionally, First Data is actively involved in other payment vehicles in the
"virtual world" such as electronic checks. Your investment in Viacom through its
merger with CBS becomes a dominant media concern with a significant number of
unique franchises. Indeed, these franchises and their content can be distributed
through multiple channels: television, radio, and the Internet. Kohl's is a
highly disciplined retailer that uses the latest technology tools to manage
their inventory and stock, and has just entered the Northeastern markets with
great success.
As many technology stocks have corrected significantly since March, we have been
opportunistic in adding several of these stocks into the Fund at much more
reasonable multiples given their higher absolute growth rates. This kind of
activity is made possible by our disciplined valuation system which signals when
stocks become attractively priced given their earnings growth prospects. Our
patience in waiting for reasonable P/E multiples has been rewarded in
performance.
From a bigger picture perspective the foremost issue in investors' minds is
where do we go from here? Specifically, has the Fed completed its tightening and
are we heading into a recession? First, we believe the Fed is close to being
done with its tightening, as more signs of a slowdown emerge and inflation
remains under control. Second, we do not anticipate a recession. A vigilant
Federal Reserve coupled with a more prudent venture capital environment should
result in a less frothy, but still solid economy.
Looking ahead, there is ample reason to be optimistic about the performance of
your Fund. For one, second quarter earnings for your companies are generally
coming in on target to slightly above expectations. Additionally, your holdings
are well balanced and offer greater growth prospects relative to the past. And
finally, your Fund should benefit from a more favorable interest rate
environment.
There is an interesting analogy between 2000 and 1994. In early 1994, the Fed
commenced a 12-month process of raising interest rates seven times. Recall that
during the second half of 1994, high-quality growth shares began a sustained
period of out-performance.
We look forward to reporting to you again in January.
New York, N.Y.
July 31, 2000
MARILYN G. BRESLOW
PRESIDENT
W.P. Stewart & Co., Inc.
Investment Adviser
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
NAME OF ISSUER MARKET
AND TITLE OF ISSUE SHARES VALUE
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--98.0%
BANKS--2.4%
Northern Trust Corporation............................................ 29,524 $ 1,920,905
-------------
COMPUTERS & BUSINESS EQUIPMENT--7.3%
Dell Computer Corporation (a)......................................... 55,000 2,712,188
EMC Corporation (a)................................................... 7,000 538,562
Gateway, Inc. (a)..................................................... 43,500 2,468,625
-------------
5,719,375
-------------
DATA PROCESSING SERVICES--14.7%
Automatic Data Processing, Inc........................................ 152,928 8,191,206
First Data Corporation................................................ 67,000 3,324,875
-------------
11,516,081
-------------
DRUGS & HEALTH CARE--19.2%
Johnson & Johnson..................................................... 20,020 2,039,537
Lilly (Eli) & Company................................................. 24,032 2,400,196
Pfizer, Inc........................................................... 114,824 5,511,552
Stryker Corporation................................................... 118,000 5,162,500
-------------
15,113,785
-------------
DRUG STORES--4.8%
CVS Corporation....................................................... 32,969 1,318,760
Walgreen Company...................................................... 77,000 2,478,437
-------------
3,797,197
-------------
ELECTRICAL EQUIPMENT--4.3%
General Electric Company.............................................. 64,332 3,409,596
-------------
ELECTRONICS--8.1%
Intel Corporation..................................................... 47,498 6,349,889
-------------
FINANCE & BANKING--5.4%
State Street Corporation.............................................. 40,093 4,252,364
-------------
FOOD & BEVERAGE--5.3%
Safeway, Inc. (a)..................................................... 35,000 1,579,375
SYSCO Corporation..................................................... 61,000 2,569,625
-------------
4,149,000
-------------
MULTIMEDIA--2.0%
Viacom, Inc., Class B (a)............................................. 23,000 1,568,313
-------------
NETWORKING PRODUCTS--1.0%
Cisco Systems, Inc. (a)............................................... 12,000 762,750
-------------
RESTAURANTS--1.9%
McDonald's Corporation................................................ 45,346 1,493,584
-------------
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
NAME OF ISSUER MARKET
AND TITLE OF ISSUE SHARES VALUE
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
RETAIL--18.7%
Autozone, Inc. (a)................................................. 95,324 $ 2,097,128
Dollar General Corporation......................................... 324,141 6,320,749
The Gap, Inc....................................................... 41,000 1,281,250
The Home Depot, Inc................................................ 49,000 2,446,938
Kohl's Corporation (a)............................................. 45,000 2,503,125
-------------
14,649,190
-------------
SOFTWARE--2.9%
Microsoft Corporation (a).......................................... 28,058 2,244,640
-------------
TOTAL COMMON STOCKS--(Cost $55,983,556) ................................. 76,946,669
-------------
SHORT TERM INVESTMENTS--2.3% PRINCIPAL
REPURCHASE AGREEMENTS--2.3% AMOUNT
Agreement with State Street Bank & Trust Company, ---------
3.500% dated 06/30/2000, to be repurchased at
$1,833,535 07/03/2000, collateralized by $1,890,000
U.S. Treasury Note, 5.750% maturing 11/30/2002
(value $1,871,470)................................................. 1,833,000 1,833,000
-------------
TOTAL SHORT TERM INVESTMENTS--(Cost $1,833,000) ...................... 1,833,000
-------------
TOTAL INVESTMENTS--(Cost $57,816,556)--100.3% 78,779,669
OTHER ASSETS LESS LIABILITIES--(0.3)% (212,988)
-------------
NET ASSETS--100.0% $ 78,566,681
=============
</TABLE>
(a) No dividends paid on security.
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at market value (Identified cost $ 55,983,556)............. $ 76,946,669
Repurchase agreements, at market value (cost $ 1,833,000)............................. 1,833,000
Cash ................................................................................. 414
Receivable for securities sold........................................................ 1,660,927
Receivable for Fund shares sold....................................................... 10,000
Dividends and interest receivable..................................................... 21,715
Other Assets.......................................................................... 42,232
-------------
Total Assets..................................................................... 80,514,957
-------------
LIABILITIES:
Payable for securities purchased...................................................... 1,644,794
Advisory fee payable.................................................................. 281,088
Other accrued expenses................................................................ 22,394
-------------
Total Liabilities................................................................ 1,948,276
-------------
NET ASSETS............................................................................ $ 78,566,681
=============
NET ASSETS CONSIST OF:
Capital stock ($0.001 par value; 100,000,000 shares
authorized, 334,613 shares issued and outstanding)............................... $ 335
Capital paid in excess of par......................................................... 54,875,732
Undistributed net investment loss..................................................... (445,301)
Accumulated realized gain on investments - net........................................ 3,172,802
Unrealized appreciation on investments - net.......................................... 20,963,113
-------------
NET ASSETS............................................................................ $ 78,566,681
=============
Net asset value per share............................................................. $ 234.80
=============
Redemption price per share............................................................ $ 233.63
=============
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Dividends............................................................................. $ 179,528
Interest.............................................................................. 39,322
-------------
Total investment income.......................................................... 218,850
-------------
EXPENSES:
Investment advisory fees.............................................................. 550,144
Administrative fees................................................................... 35,278
Custodian fees........................................................................ 25,840
Transfer agent fees................................................................... 20,668
Directors fees........................................................................ 11,665
Registration fees..................................................................... 7,528
Miscellaneous fees.................................................................... 13,028
-------------
Total expenses................................................................... 664,151
-------------
Net investment loss................................................................... (445,301)
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments...................................................... 2,403,811
Net change in unrealized appreciation on investments.................................. 3,134,381
-------------
Net gain on investments............................................................... 5,538,192
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................. $ 5,092,891
=============
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE YEAR
JUNE 30, 2000 ENDED
(UNAUDITED) DECEMBER 31, 1999
----------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss............................................. $ (445,301) $ (698,803)
Net realized gain on investments................................ 2,403,811 4,910,178
Net change in unrealized appreciation
on investments................................................ 3,134,381 1,270,838
----------------- ---------------
Net increase in net assets
from operations.......................................... 5,092,891 5,481,213
----------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments................................ - (4,226,490)
----------------- ---------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold....................................... 5,697,115 24,823,008
Shares issued to shareholders
in reinvestment of distributions........................... - 4,139,027
Cost of redemptions............................................. (7,534,552) (5,556,260)
----------------- ---------------
Net (decrease)/increase in net assets from Fund
share transactions....................................... (1,837,437) 23,405,775
----------------- ---------------
Net increase in net assets...................................... 3,255,454 24,661,498
================= ===============
NET ASSETS:
Beginning of period............................................. 75,311,227 50,649,729
----------------- ---------------
End of period................................................... $ 78,566,681 $ 75,311,227
================= ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE
ENDED YEAR YEAR
JUNE 30, 2000 ENDED ENDED
(UNAUDITED) DECEMBER 31, 1999 DECEMBER 31, 1998
-------------- ------------------ -----------------
<S> <C> <C> <C>
INCOME FROM INVESTMENT OPERATIONS:
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period............... $ 218.96 $ 213.59 $ 168.71
---------- ----------- -----------
Net investment loss............................ (1.33) (2.03) (2.21)
Net realized and unrealized gain on
investments................................ 17.17 20.40 57.80
---------- ----------- -----------
Net increase from investment operations............ 15.84 18.37 55.59
Distributions to shareholders from net
realized gains on investments.................. - (13.00) (10.71)
----------- ----------- -----------
Net asset value, end of period..................... $ 234.80 $ 218.96 $ 213.59
========== =========== ===========
TOTAL INVESTMENT RETURN (a)........................ 7.23% 8.76% 33.30%
RATIOS AND SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............ 1.81%(b) 1.90% 1.94%
Ratio of fees and expenses waived and
reimbursed by the Adviser and
Administrator to average net assets............ - - -
Ratio of net investment loss to
average net assets............................. (1.21)%(b) (1.10)% (1.26)%
Portfolio turnover ................................ 26% 32% 34%
Net assets, end of period (in thousands) .......... $ 78,567 $ 75,311 $ 50,650
-----------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Total investment return is calculated assuming a purchase of common stock
at net asset value at the beginning of the period, a sale at net asset
value at the end of the period, reinvestment of all dividends and
distributions at net asset value during the period and no redemption fee.
Total investment return would be reduced if the redemption fee of 0.50%
were taken into account. Total investment return for a period of less than
one year is not annualized. Past performance results shown in this report
should not be considered a representation of future performance. Investment
return will vary, and net asset value of shares, when redeemed, may be
worth more or less than their original cost.
(b) Annualized.
The chart above reflects the unaudited operating performance for the six months
ended June 30, 2000 and the audited operating performance for the years ended
December 31, 1999 and 1998, based on a share of Fund common stock outstanding,
as well as total investment return, ratios to average net assets and other
supplemental data for the periods indicated. This information has been
determined based upon information provided in the financial statements.
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
YEAR YEAR YEAR
ENDED ENDED ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996 DECEMBER 31, 1995
----------------- ----------------- -----------------
<S> <C> <C> <C>
INCOME FROM INVESTMENT OPERATIONS:
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period............... $ 152.65 $ 125.94 $ 101.06
---------- ----------- -----------
Net investment loss............................ (1.87) (1.81) (1.15)
Net realized and unrealized gain on
investments................................ 38.53 40.17 29.19
---------- ----------- -----------
Net increase from investment operations............ 36.66 38.36 28.04
Distributions to shareholders from net
realized gains on investments.................. (20.60) (11.65) (3.16)
----------- ------------ ------------
Net asset value, end of period..................... $ 168.71 $ 152.65 $ 125.94
========== =========== ===========
TOTAL INVESTMENT RETURN (a)........................ 24.69% 30.64% 27.73%
RATIOS AND SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............ 2.13% 2.50% 2.50%
Ratio of fees and expenses waived and
reimbursed by the Adviser and
Administrator to average net assets............ 0.02% 0.28% 1.32%
Ratio of net investment loss to
average net assets............................. (1.35)% (1.51)% (1.36)%
Portfolio turnover ................................ 79% 76% 76%
Net assets, end of period (in thousands) .......... $ 36,201 $ 19,829 $ 10,789
-----------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Total investment return is calculated assuming a purchase of common stock
at net asset value at the beginning of the period, a sale at net asset
value at the end of the period, reinvestment of all dividends and
distributions at net asset value during the period and no redemption fee.
Total investment return would be reduced if the redemption fee of 0.50%
were taken into account. Total investment return for a period of less than
one year is not annualized. Past performance results shown in this report
should not be considered a representation of future performance. Investment
return will vary, and net asset value of shares, when redeemed, may be
worth more or less than their original cost.
The chart above reflects the audited operating performance, based on a share of
Fund common stock outstanding, as well as total investment return, ratios to
average net assets and other supplemental data for the periods indicated. This
information has been determined based upon information provided in the financial
statements.
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION AND FUND DESCRIPTION
W.P. Stewart & Co. Growth Fund, Inc. (the "Fund") is an open-end,
non-diversified management investment company registered under the Investment
Company Act of 1940 (the "Act"). It was incorporated under the laws of the State
of Maryland in September 1993. The Fund invests primarily in common stocks
listed on the New York Stock Exchange. W.P. Stewart & Co., Inc., a registered
investment adviser, is the Fund's investment adviser. W.P. Stewart & Co., Inc.
assumed this responsibility from its affiliate in July, 1998. The change did not
involve any change in actual control or management of the investment adviser to
the Fund. W.P. Stewart & Co., Inc. and its predecessor are together referred to
as the "Adviser." Shares of the Fund are available for subscription by eligible
investors. There is no sales charge. The redemption fee is 0.50%.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Fund.
USE OF ESTIMATES: The process of preparing financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions which affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of
the financial statements, as well as the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.
INVESTMENT VALUATION: The Fund values its portfolio as directed by the Board of
Directors at the closing price of the New York Stock Exchange (generally 4:00
p.m. New York City time) of each business day.
In general, the Fund values its portfolio holdings as of their last available
public sale price on the valuation date, in the case of securities listed on any
established securities exchange or included in the NASDAQ National Market System
or any comparable foreign over-the-counter quotation system providing last sale
data or, if no sales of such securities are reported on such date and in the
case of over-the-counter securities not described above in this paragraph, at
the last reported bid price. In cases where securities are traded on more than
one exchange, the securities are valued on the exchange on which the securities
are principally traded. All other securities and assets are valued at fair value
as determined in good faith by or under the direction of the Board of Directors.
INVESTMENT TRANSACTIONS: All securities transactions are recorded on a trade
date basis. Dividend income is recorded on the ex-dividend date and interest
income is recorded on the accrual basis. Realized gains and losses on sales of
securities are determined on the basis of identified cost.
REPURCHASE AGREEMENTS: A repurchase agreement customarily requires the seller to
repurchase the securities at a mutually agreed upon time and price. The total
amount received by the Fund on repurchase would be calculated to exceed the
price paid by the Fund, reflecting an agreed upon yield for the period of time
to the settlement (repurchase) date. The underlying securities are ordinarily
United States government securities, but may consist of other securities in
which the Fund is permitted to invest. Repurchase agreements will be fully
collateralized at all times. If the seller defaults in its obligation to
repurchase, the Fund may suffer a loss as a result of the cost in liquidating
the collateral and if the collateral declines in value.
9
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ORGANIZATION EXPENSES: The Adviser has borne all costs and expenses associated
with the organization and initial registration of the Fund and its shares.
FEDERAL INCOME TAXES: The Fund's policy is to comply with the requirements of
the Internal Revenue Code that are applicable to registered investment companies
and to distribute all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund intends to pay an annual
dividend to shareholders of record representing its entire net investment income
and to distribute all of its realized net capital gains at least annually.
Distributions are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
During the six months ended June 30, 2000, the Fund did not make any
distributions to shareholders.
3. RELATED PARTY AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Investment Services Advisory Agreement, the Fund pays the Adviser a
fee of 1.5% of the Fund's average daily net assets, which is payable quarterly
in arrears.
In addition to the quarterly advisory fee, the Fund bears all costs and expenses
directly related to investment transactions effected and positions held for the
Fund's account, including brokerage commissions, custodial fees, interest on
borrowings and administrative fees. The Adviser has voluntarily agreed to waive
and/or reimburse expenses of the Fund so that total Fund operating expenses do
not exceed 2.5% of the average annual net assets of the Fund up to $30 million,
2% of the average annual net assets of the Fund of the next $70 million, and
1.5% of the average annual net assets of the Fund in excess of $100 million.
Such voluntary waiver and/or expense reimbursement is not required by the
Investment Advisory Services Agreement and may be discontinued at any time. In
addition, the Adviser voluntarily bears the cost of certain professional
services incurred by the Fund, including audit, legal, and other miscellaneous
expenses, although this arrangement may change in the future. The amount of the
expenses for professional services borne by the Adviser was $59,592 for the six
months ended June 30, 2000.
Under the terms of the Investment Advisory Services Agreement, an affiliated
company of the Adviser may conduct brokerage services for the Fund. For the six
months ended June 30, 2000, the Adviser's affiliate earned $65,163 in
commissions as broker on trades of portfolio securities.
Each of the directors who is not an officer or employee of the Adviser (the
"Independent Directors") is entitled to be paid by the Fund a fee of $1,250 for
each meeting that he or she attends of the Fund's Board of Directors and each
meeting of any committee of the Board of Directors on which he or she serves.
For the six months ended June 30, 2000, the Fund has paid a total of $11,250 to
the Independent Directors for their services.
10
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
4. ADMINISTRATION AGREEMENT
The Fund is a party to an Administration Agreement with State Street Bank and
Trust Company (the "Administrator") dated January 11, 1994. Under that
agreement, the Administrator receives an annual fee equal to 0.08% of the Fund's
net asset value up to $125 million, 0.06% of the next $125 million, and 0.04% of
assets in excess of $250 million, subject to a minimum annual fee of $65,000.
5. INVESTMENT TRANSACTIONS
Purchases of investments and proceeds from sales of investments, excluding
short-term securities, for the six months ended June 30, 2000 were $19,000,159
and $20,707,583, respectively. As of June 30, 2000, unrealized appreciation and
depreciation for Federal income tax purposes was $22,404,190 and $1,441,077,
respectively. The aggregate cost of investments at June 30, 2000 for Federal
income tax purposes was $55,983,556.
6. FUND SHARE TRANSACTIONS
The Fund is authorized to issue 100,000,000 shares of $0.001 par value capital
stock. For the six months ended June 30, 2000 and the year ended December 31,
1999, transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 27,314 $5,697,115 113,012 $24,823,008
Reinvested - - 19,319 4,139,027
Redeemed (36,657) (7,534,552) (25,506) (5,556,260)
--------------- ------------------ -------------- -----------------
Net increase/(decrease) (9,343) $(1,837,437) 106,825 $23,405,775
--------------- ------------------ -------------- -----------------
</TABLE>
7. BENEFICIAL INTEREST
At June 30, 2000, no shareholder owned more than 5% of the Fund's outstanding
shares.
8. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
Statement of Financial Accounting Standards No. 107, "Disclosures About Fair
Value of Financial Instruments," requires disclosure of fair value information
about financial instruments for which it is practicable to estimate the value,
whether or not recognized on the statement of financial condition. As a
registered investment company, the Fund's investments in securities are already
recorded at market value. The fair value of all other financial assets and
liabilities is considered to approximate the recorded value, due to the
short-term nature of the financial instruments.
11
<PAGE>
W.P. STEWART & CO. GROWTH FUND, INC.
527 MADISON AVENUE
NEW YORK, NY 10022
--------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
Marilyn G. Breslow President and Director
John C. Russell Vice President and Director
June Eichbaum Director
William Talcott May Director
Thomas R. LeViness Director
David J. Winkler Director
Susan G. Leber Treasurer
Lisa D. Levey Secretary
Alison A. Proshan Assistant Secretary
INVESTMENT ADVISER
W.P. Stewart & Co., Inc.
527 Madison Avenue
New York, NY 10022
(212) 750-8585
ADMINISTRATOR, CUSTODIAN, TRANSFER AGENT AND SHAREHOLDER SERVICING AGENT
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
INDEPENDENT AUDITORS
M.R.Weiser & Co. LLP
135 West 50th Street
New York, NY 10020
LEGAL COUNSEL
Swidler Berlin Shereff Friedman, LLP
The Chrysler Building
405 Lexington Avenue
New York, NY 10174
--------------------------------------------------------------------------------
THIS REPORT IS NOT AUTHORIZED FOR USE AS AN OFFER OF SALE OR A SOLICITATION OF
AN OFFER TO BUY SHARES OF THE FUND UNLESS ACCOMPANIED OR PRECEDED BY THE FUND'S
CURRENT PROSPECTUS. PAST PERFORMANCE RESULTS SHOWN IN THIS REPORT SHOULD NOT BE
CONSIDERED A REPRESENTATION OF FUTURE PERFORMANCE. INVESTMENT RETURN WILL VARY,
AND NET ASSET VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST.
