GUINNESS FLIGHT INVESTMENT FUNDS, N-30D, 2000-09-05

GUINNESS FLIGHT INVESTMENT FUNDS
N-30D, 2000-09-05

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<PAGE>

SEMI-ANNUAL REPORT June 30, 2000

GUINNESS FLIGHT
INVESTMENT FUNDS

ASIA BLUE CHIP FUND

ASIA SMALL CAP FUND

CHINA & HONG KONG FUND

INTERNET.COM INDEX-TM- FUND

MAINLAND CHINA FUND

WIRED INDEX-TM- FUND

WIRELESS WORLD FUND-TM-

[LOGO]

<PAGE>
GUINNESS FLIGHT INVESTMENT FUNDS

DEAR GUINNESS FLIGHT SHAREHOLDER,

While the performance for our funds for the first six months of 2000 has
been bumpy, the year thus far has been an exciting one for the Guinness Flight
Investment Funds. The launch of the Wireless World Fund-TM- in February was well
received, and we welcome the many new shareholders of this fund to the Guinness
Flight Fund family. The Wireless World Fund-TM- further reinforces our position
as the fund range for the future. Each of the Guinness Flight Funds is designed
to allow investors the opportunity to capitalize on change.

In looking at our world, we see a bright future:

Asia has survived one of the most difficult periods in the region's history
during the economic crisis that began in 1997, and some Asian countries are
now thriving with industrial production figures that exceed pre-crisis
levels. Credit must be afforded to our Hong Kong investment team that
officially, and courageously, took a strongly bullish position on the Asian
markets in November 1998. Regardless of the short-term cycles in the
economies and markets, Asia is continuing on its path as the dominant
economic center for the 21st century world.

China, once so isolated from the West, is now likely to enter the World
Trade Organization, which we expect will happen in the next few months.

It is difficult to remember only a few years ago when the Internet was still
relatively unknown. It is now obvious that the Internet has meaningfully
changed our lives, and we believe the best is yet to come as the Internet
moves into a broadband and wireless future.

The New Economy is real, not just in the U.S. but throughout the world. When
we launched the Wired Index-TM- Fund in December 1998, many were skeptical
of the New Economy concept. Now it is a widely accepted term; in fact, one
cannot read the financial pages without seeing the phrase repeatedly. This
acceptance is a result of companies in virtually every industry coming to
grips with a new way of doing business and serving the needs of their
customers.

It is important to keep in mind that these changes and developments are not fads
or short-lived trends. They will create a future dramatically different from
yesterday and today.

Within the following pages, the portfolio managers give further insight into
their investment perspectives and fund information. The June 30 date of this
semi-annual report highlights the sixth anniversary of the China and Hong Kong
Fund. As the category of funds focused on this region grows, the China and Hong
Kong Fund continues to be one of the oldest and most respected funds.

Change is also coming to the Guinness Flight Investment Funds. Within the
next few months, it is proposed that the name of the Guinness Flight Investment
Funds will be

1
<PAGE>
changed to the Investec Funds. This name change is in recognition of the greater
changes with the investment advisor to the funds and provides the funds with the
opportunity to operate under the more globally recognized Investec name.

We invite you to visit our website at WWW.GFFUNDS.COM to get the latest fund
updates and regional market news. Under current development for the website is a
new feature to track the Wired Index-TM- and internet.com Index-TM- Funds with
15-minute delayed stock prices and index values. Enhanced features now available
are the ability to invest in and redeem fund shares online, the new IAM WIRELESS
BOARD to discuss wireless topics, and complete portfolio listings updated
monthly to help you better understand and track your investments.

As always, it is a pleasure to present this report to you. Thank you for the
trust you have placed in us to assist you in meeting your investment needs.

Sincerely,

/s/ James J. Atkinson, Jr.
James J. Atkinson, Jr.
President

PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST IN ANY OF THE GUINNESS
FLIGHT INVESTMENT FUNDS. THE PROSPECTUS CONTAINS MORE INFORMATION, INCLUDING THE
CHARGES AND EXPENSES RELATED TO AN ONGOING INVESTMENT IN THE FUNDS, POTENTIAL
RISKS ASSOCIATED WITH FOREIGN INVESTING AS WELL AS THE RISKS OF INVESTING IN
SMALLER COMPANIES, TECHNOLOGY/TELECOMMUNICATIONS COMPANIES AND INDUSTRY-
SPECIFIC INDEXES. RISKS OF FOREIGN INVESTING INCLUDE HIGHER VOLATILITY, THE
POSSIBILITY OF GOVERNMENT EXPROPRIATION, THE VALUE OF FOREIGN CURRENCIES
DECLINING RELATIVE TO THE U.S. DOLLAR, AND POLITICAL, SOCIAL OR ECONOMIC
INSTABILITY IN A PARTICULAR REGION WHICH MAY CAUSE THE VALUE OF A FUND'S
INVESTMENTS TO DECLINE. RISKS OF INVESTING IN SMALLER COMPANIES INCLUDE HIGHER
VOLATILITY THAN LARGER COMPANIES AND THE POTENTIAL DIFFICULTY OF SELLING THOSE
STOCKS DURING MARKET DOWNTURNS (ILLIQUIDITY). RISKS OF INVESTING IN A PARTICULAR
INDUSTRY SECTOR OR INDUSTRY-SPECIFIC INDEX INCLUDE THE POTENTIAL TO BE MORE
ADVERSELY AFFECTED BY MARKET DOWNTURNS THAN A PORTFOLIO OR INDEX THAT IS MORE
BROAD- BASED.

THE FUNDS ARE DISTRIBUTED BY FIRST FUND DISTRIBUTORS, INC., PHOENIX, AZ 85018.

2
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND

BACKDROP

Asia has made a very sharp economic recovery. Imports are growing very
rapidly throughout Asia, and every country that reports monthly industrial
production figures has reported strong growth. Industrial production is at
record levels in most Asian countries. The domestic economies are also improving
as both consumption and investment recover. A significant portion of the new
investment is concentrated in the new economy area with heavy spending on
information technology and telecommunications.

Against this backdrop, we have rotated the fund away from the
ultra-defensive stance held until the second quarter of 1999. Additionally, we
have heavily focused the portfolio on new economy stocks, although we have
avoided direct Internet companies. We have bought shares in the electronics
industry, concentrating on those manufacturers that are experiencing strong
global demand from the telecoms and Internet sectors. We have also concentrated
on the telecoms companies, with an emphasis on the wireless providers. In the
banking sector, we have tried to concentrate the portfolio on those banks that
we believe have the management and balance sheets to adapt to the new economy.

THE FUND

Against a backdrop of fluctuating Asian markets during the first half of the
year the fund fell by 8.7% compared to a 12.0% fall in the MSCI AC Far East free
ex Japan index. During the first quarter, the best performers were the MSCI
country indices for Malaysia and Taiwan, which rose over the quarter, although
the rise was offset by heavy falls in The Philippines, Singapore, Indonesia,
China and Thailand. The MSCI Hong Kong and South Korean indices were flat.
Overall, stock selection was positive with excess returns from China, Hong Kong,
Korea, The Philippines, Singapore and Taiwan. The fund underperformed in
Malaysia and Thailand. During the second quarter, all of the MSCI country
indices fell (in U.S. dollar terms). South Korea and Singapore were the best
performing markets, falling 0.4% and 2.1% respectively. The worst performing
markets were Indonesia (again) and Thailand (again), where on a combined basis
the fund has a very small holding. The Hong Kong, Malaysia, Philippine and
Taiwanese indices all produced very similar returns, down around 15%. Overall
asset allocation added value over the second quarter. Stock selection was
positive in Hong Kong, Korea, Malaysia, Singapore and Thailand, but the fund
underperformed in China and Taiwan. To minimize the problems with GDR premia, we
have shifted from 5.7% of portfolio assets invested locally in Taiwan to 16.0%.

At the end of May, MSCI re-included Malaysia, reduced the discount applied
to Taiwan to 35%, and included several red-chips (including China Mobile) in the
China index. We have re-classified China Mobile and Citic Pacific into China and
out of Hong Kong to match

3
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND (CONTINUED)

the MSCI definitions. Against the index, we continue to be overweight in Taiwan
and Korea, with heavy weighting in the technology sector. We have minimal
weightings in the smaller Southeast Asian markets, Thailand, Indonesia and The
Philippines.

Portfolio activity has centered on reducing the number of names in the
portfolio and focusing on the new economy. Old economy names such as Korea
Electric Power, DBS Land, Nan Ya Plastics and Swire Pacific were eliminated from
the portfolio and replaced with a mobile operator (China Telecom), technology
stocks (Unisem, ST Assembly Test Services, Compeq, and Macronix) and an Internet
holding company (Pacific Century Cyberworks). Krung Thai Bank, Bank of The
Philippine Islands, and Hang Seng Bank were sold as we perceived them to be
vulnerable to a switch to Internet banking. Given our concerns about the opening
of the Singapore market to competition, we sold Singapore Telecom and took
profits from SK Telecom.

The Nasdaq weakness spilled over into technology shares in Asia. Leading
stocks such as Samsung Electronics and Taiwan Semiconductor came under heavy
selling pressure. We have taken the opportunity with the falls in technology
shares to increase the weightings in several of Asia's leading technology
companies. We made purchases in Samsung Electronics, United Microelectronics,
Taiwan Semiconductor, Macronix, and Siliconware Precision. A new holding, Via
Technologies, was also added to the portfolio. These companies are all involved
in the semiconductor industry which is enjoying a period of very strong demand.
We also increased the weighting in China Mobile as the company continues to
exceed expectations for the number of subscribers, and we expect strong profit
growth.

Against the portfolio increases, we have also reduced or eliminated some
previous holdings. We sold distributor Synnex as we prefer to concentrate on the
semiconductor industry. We also sold the position in Thai Farmers Bank as
Thailand has progressed slowly in working through the non-performing loans. Due
to the weak Philippine economy and apparent lack of leadership in the country,
we sold Manila Electric and PLDT.

OUTLOOK

The electronics industry, and the semiconductor sector in particular, is
enjoying a period of very strong demand. Foundry companies are unable to meet
demand and are therefore able to increase prices for their wafers. Taiwan
Semiconductor has already reported excellent second quarter profits, and we
expect likewise from others like United Microelectronics. Samsung Electronics
has even mentioned the possibility of DRAM shortages in the second half of the
year. While this is good news for the foundries and integrated circuit testing
companies, it is not good for the contract manufacturers, many of which have
complained about component shortages which will lower utilization rates. Our
strategy is to overweight the foundry industry as long as pricing remains very
firm and to underweight the contract manufacturers.

4
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND (CONTINUED)

In the telecoms sector, we favor mobile companies over fixed line operators.
We have overweight positions in Hutchison Whampoa, China Mobile and SK Telecom.

We also have an overweight position in the banking sector. Asset quality in
Asia should gradually improve as the economies recover and banks are able to
make dramatically lower provisions. Although loan growth is not yet strong in
Asia, we expect to see some signs of improvement in the coming months. Our
banking exposure is concentrated in Hong Kong, Singapore and Malaysia, three
countries that have been more successful in working through problems caused by
the last recession. Early second quarter results from DBS Group and HSBC are
encouraging, and this sector may attract investor attention if U.S. interest
rates are deemed to have peaked.

Our strategy is to run a more focused portfolio with a shorter list of
names. As of June 30, 2000, there are 34 holdings (compared to 52 at June 30,
1999) with the top 10 holdings accounting for over 61% of the fund (compared to
34% at June 30, 1999). Less than 50% of the fund is matched with the index.

-- Robert Conlon

Hong Kong

CURRENTLY, SHAREHOLDERS OF THE FUND ARE CONSIDERING A PROPOSAL TO AMEND THE
INVESTMENT OBJECTIVE OF THE FUND IN ORDER TO TRANSFORM IT FROM THE ASIA BLUE
CHIP FUND INTO THE ASIA NEW ECONOMY FUND. THIS ACTION WILL ALLOW THE FUND TO
CONCENTRATE MORE ON INVESTING IN THE ASIA NEW ECONOMY.

5
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND
--------------------------------------------------------------------------------
FUND HIGHLIGHTS
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
# of Holdings in Portfolio: 34
Portfolio Turnover: 46.4%
% of Stocks in Top 10: 61.3%
</TABLE>

FUND MANAGERS:
Robert Conlon; Agnes Chow

<TABLE>
<CAPTION>
TOP 10 HOLDINGS (% OF NET ASSETS)
<S> <C>
-------------------------------------
Samsung Electronics GDR 13.5%
Hutchison Whampoa 8.9%
China Telecom 7.9%
Taiwan Semiconductor
Manufacturing Co., Ltd. 6.3%
SK Telecom Co. 5.9%
United Microelectronics Corp. 4.8%
DBS Group Holdings Ltd. 3.8%
Johnson Electric Holdings 3.5%
Malayan Banking Berhad 3.5%
Cable & Wireless HKT 3.2%
<CAPTION>
TOP 5 SECTORS (% OF NET ASSETS)
-------------------------------------
<S> <C>
Electronics 38.3%
Telecommunications 20.0%
Banking 14.1%
Diversified Operations 10.5%
Airline 2.9%
<CAPTION>
TOP 5 COUNTRIES (% OF NET ASSETS)
-------------------------------------
<S> <C>
Hong Kong 34.8%
South Korea 23.1%
Taiwan 22.8%
Singapore 11.2%
Malaysia 5.6%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE GUINNESS FLIGHT
ASIA BLUE CHIP FUND AND THE MSCI AC FAR EAST FREE EX-JAPAN INDEX

<TABLE>
<CAPTION>
GUINNESS FLIGHT ASIA MSCI AC FAR EAST FREE
BLUE CHIP FUND EX-JAPAN INDEX
<S> <C> <C>
4/29/96* $10,000 $10,000
6/30/96 $9,904 $9,706
9/30/96 $9,840 $9,372
12/31/96 $10,384 $9,564
3/31/97 $9,880 $9,247
6/30/97 $10,411 $9,815
9/30/97 $8,697 $8,064
12/31/97 $6,471 $5,591
3/31/98 $6,759 $5,860
6/30/98 $4,951 $3,925
9/30/98 $4,661 $3,611
12/31/98 $5,709 $5,062
3/31/99 $5,950 $5,179
6/30/99 $7,450 $7,108
9/30/99 $6,781 $6,369
12/31/99 $9,200 $7,849
3/31/00 $9,297 $7,584
6/30/00 $8,401 $6,674
</TABLE>

* Inception date.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR SINCE INCEPTION
<S> <C>
12.77% -4.09%

</TABLE>

6
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND

SCHEDULE OF INVESTMENTS BY COUNTRY

AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
SHARES
COMMON STOCKS: 98.6%
VALUE
-------------------------------------------------------------------------------
<C> <S> <C>
HONG KONG: 34.8%
135,200 Cable & Wireless HKT.................................... $ 297,444
60,000 Cathay Pacific Airways.................................. 111,220
84,000 China Telecom........................................... 740,826
18,000 Cheung Kong............................................. 199,157
30,000 Citic Pacific Ltd....................................... 157,017
50,000 Dao Heng Bank Group Ltd................................. 221,286
18,000 HSBC Holdings Plc....................................... 205,507
66,000 Hutchison Whampoa....................................... 829,725
35,000 Johnson Electric Holdings............................... 331,127
12,000 Li & Fung Ltd........................................... 60,036
50,000 Pacific Century Cyberworks.............................. 98,777
----------
3,252,122
----------
MALAYSIA: 5.6%
36,000 Commerce Asset-Holding Berhad........................... 104,211
81,000 Malayan Banking Berhad.................................. 328,263
13,000 Unisem (M) Berhad....................................... 92,368
----------
524,842
----------
SINGAPORE: 11.2%
22,000 Chartered Semiconductor................................. 192,062
27,890 DBS Group Holdings Ltd.................................. 357,967
16,000 Singapore Airlines...................................... 158,182
13,000 Singapore Press Holdings................................ 202,931
21,120 United Overseas Bank.................................... 137,979
----------
1,049,121
----------
SOUTH KOREA: 23.1%
3,907 Korea Telecom Corp. GDR................................. 185,583
14,970 SK Telecom Co........................................... 548,276
3,800 Samsung Electronics GDR................................. 1,257,550
18,000 Shinhan Bank............................................ 169,503
----------
2,160,912
----------
</TABLE>

7
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND

SCHEDULE OF INVESTMENTS BY COUNTRY

<TABLE>
<C><S> <C>
* Non-income producing security.
+ At June 30, 2000, the basis of investments for federal income
tax
purposes was the same as their cost for financial reporting
purposes.
Unrealized appreciation and depreciation were as follows:
Gross unrealized appreciation.................... $2,127,726
Gross unrealized depreciation.................... (262,256)
----------
Net unrealized appreciation...................... $1,865,470
==========
ADR - American depositary receipt.
GDR - Global depositary receipt.
</TABLE>

See accompanying Notes to Financial Statements.

8
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
------------------------------------------------------------------------
% OF
INDUSTRY NET ASSETS
------------------------------------------------------------------------
<S> <C>
Airline..................................................... 2.9%
Banking..................................................... 14.1
Computer Equipment.......................................... 2.3
Diversified Operations...................................... 10.5
Electronics................................................. 38.3
Holding Companies........................................... 2.2
Internet Services........................................... 1.1
Manufacturing............................................... 1.0
Media....................................................... 2.2
Micro Computers............................................. 1.3
Real Estate................................................. 2.1
Telecommunications.......................................... 20.0
Wholesale................................................... 0.6
-----
TOTAL INVESTMENTS IN SECURITIES............................. 98.6
OTHER ASSETS LESS LIABILITIES............................... 1.4
-----
NET ASSETS.................................................. 100.0%
=====
</TABLE>

See accompanying Notes to Financial Statements.

9
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND

STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, at value (cost $7,353,330)....... $ 9,218,800
Cash........................................................ 12,928
Receivables:
Securities sold......................................... 109,741
Fund shares sold........................................ 102
Due from advisor (Note 3)............................... 509
Dividends and interest.................................. 8,793
Prepaid expenses............................................ 12,520
Deferred organization costs................................. 1,445
-----------
Total assets............................................ 9,364,838
-----------

LIABILITIES
Accrued expenses............................................ 15,127
-----------
NET ASSETS.................................................. $ 9,349,711
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($9,349,711/897,019 shares outstanding; unlimited
number of shares authorized without par value).......... $10.42
------
-------
COMPONENTS OF NET ASSETS
Paid-in capital......................................... $ 9,596,307
Accumulated net investment loss......................... (7,107)
Accumulated net realized loss on investments and foreign
currency.............................................. (2,107,441)
Net unrealized appreciation on:
Investments......................................... 1,865,470
Foreign Currency.................................... 2,482
-----------
NET ASSETS.................................................. $ 9,349,711
===========
</TABLE>

See accompanying Notes to Financial Statements.

10
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND

STATEMENT OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, 2000
----------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
INCOME
Dividends (net of foreign tax withheld of $3,595)........... $ 51,517
Interest.................................................... 1,554
-----------
Total income............................................ 53,071
-----------

EXPENSES
Advisory fees (Note 3)...................................... 49,184
Fund accounting fees........................................ 25,115
Transfer agent fees......................................... 19,944
Administration fees (Note 3)................................ 12,296
Custody fees................................................ 11,838
Audit fees.................................................. 6,980
Registration expense........................................ 6,655
Reports to shareholders..................................... 2,717
Trustee fees................................................ 2,083
Legal fees.................................................. 2,008
Miscellaneous............................................... 1,049
Amortization of deferred organization costs................. 872
Insurance expense........................................... 362
-----------
Total expenses.......................................... 141,103
Less: Fees waived and expenses absorbed (Note 3)........ (43,720)
-----------
Net expenses............................................ 97,383
-----------
NET INVESTMENT LOSS................................. (44,312)
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain on investments............................ 1,125,802
Net realized loss on foreign currency....................... (406)
Net unrealized depreciation on:
Investments............................................. (1,937,504)
Foreign currency........................................ (1,604)
-----------
Net realized and unrealized loss on investments and
foreign currency...................................... (813,712)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $ (858,024)
===========
</TABLE>

See accompanying Notes to Financial Statements.

11
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000# DECEMBER 31, 1999
---------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:

OPERATIONS
Net investment income (loss)............. $ (44,312) $ 10,458
Net realized gain on investments......... 1,125,802 660,815
Net realized loss on foreign currency.... (406) (5,294)
Net unrealized appreciation
(depreciation) on:
Investments.......................... (1,937,504) 3,488,488
Foreign currency..................... (1,604) 4,081
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.......... (858,024) 4,158,548
----------- -----------

CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from
net change in outstanding shares (a)... (578,609) (1,221,632)
----------- -----------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................. (1,436,633) 2,936,916

NET ASSETS
Beginning of period...................... 10,786,344 7,849,428
----------- -----------
END OF PERIOD (including accumulated net
investment income (loss) of ($7,107)
and $37,205, respectively)............. $ 9,349,711 $10,786,344
=========== ===========
</TABLE>

(a) A summary of capital share transactions is as follows:

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
JUNE 30, 2000# ENDED
------------------------------------------------------ DECEMBER 31, 1999
---------------------- ------------------------
SHARES VALUE SHARES
------------------------------------------------------ VALUE
<S> <C> <C> <C> <C>
Shares sold................... 334,872 $ 3,576,294 996,270 $ 8,273,165
Shares redeemed............... (382,783) (4,154,903) (1,159,538) (9,494,797)
-------- ----------- ---------- -----------
NET DECREASE.................. (47,911) $ (578,609) (163,268) $(1,221,632)
======== =========== ========== ===========
</TABLE>

# Unaudited.

See accompanying Notes to Financial Statements.

12
<PAGE>
GUINNESS FLIGHT ASIA BLUE CHIP FUND

FINANCIAL HIGHLIGHTS

FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
APRIL 29,
SIX MONTHS 1996*
ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, ------------------------------ DECEMBER 31,
2000# 1999 1998 1997 1996
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period...................... $11.41 $ 7.08 $ 8.08 $ 12.98 $12.50
------ ------ ------- ------- ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss).................... (0.05) (0.03) 0.05 0.02 0.00
Net realized and unrealized
gain (loss) on investments
and foreign currency...... (0.94) 4.36 (1.01) (4.91) 0.48
------ ------ ------- ------- ------
Total from investment
operations.................. (0.99) 4.33 (0.96) (4.89) 0.48
------ ------ ------- ------- ------

LESS DISTRIBUTIONS:
From net investment
income.................... -- -- (0.04) (0.01) --
------ ------ ------- ------- ------
Net asset value, end of
period...................... $10.42 $11.41 $ 7.08 $ 8.08 $12.98
====== ====== ======= ======= ======

Total return.................. (8.68)%++ 61.16 % (11.78)% (37.68)% 3.84 %++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(millions)................... $ 9.3 $ 10.8 $ 7.8 $ 6.9 $ 3.7
RATIO OF EXPENSES TO AVERAGE
NET ASSETS:
Before fees waived, expenses
absorbed or recouped...... 2.87 %+ 2.99 % 3.85 % 4.41 % 9.14 %+
After fees waived, expenses
absorbed or recouped...... 1.98 %+ 1.98 % 1.98 % 1.98 % 1.98 %+
RATIO OF NET INVESTMENT INCOME
(LOSS) TO AVERAGE NET ASSETS:
Before fees waived, expenses
absorbed or recouped...... (1.79)%+ (0.89)% (1.03)% (2.16)% (7.10)%+
After fees waived, expenses
absorbed or recouped...... (0.90)%+ 0.12 % 0.91 % 0.28 % 0.06 %+

Portfolio turnover rate....... 46.43 %++ 82.34 % 77.62 % 34.69 % 10.97 %++

BANK LOANS
Amount outstanding at end of
period (millions)............ n/a $ --^ $ -- $ -- n/a
Average amount of bank loans
oustanding during the period
(monthly average)
(millions)................... n/a $ --^ $ -- $ 0.12 n/a
Average number of shares
outstanding during the period
(monthly average)
(millions)................... n/a --^ -- 0.48 n/a
Average amount of debt per
share during the period...... n/a $ --^ $ -- $ 0.25 n/a
</TABLE>

<TABLE>
<S> <C>
# Unaudited
* Commencement of operations.
+ Annualized.
++ Not annualized.
^ The Fund's line of credit expired June 15, 1999.
</TABLE>

See accompanying Notes to Financial Statements.

13
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND

BACKDROP

In the first three months of this year, technology companies in Singapore
and Taiwan performed strongly. Fundamentally, these companies have benefited
from the rebound in intra-regional trade and continued export growth to the U.S.
This factor, as well as the strong performance of the technology sector
globally, pushed Asian technology shares sharply higher. However, interest rate
concerns in Hong Kong focused investors away from old economy stocks, causing
heavy selling pressure for Dah Sing Financial, JCG Holdings, Esprit Holdings and
HKR International. Moreover, the Philippine stock market has slumped as
President Estrada's government struggles to overcome charges of cronyism and a
lack of economic leadership. The best performing sectors in Thailand were
telecommunications and technology where the fund has little exposure, which
caused this element of the portfolio to underperform.

Asian markets fell sharply during April and May as investors continued to
worry about rising U.S. interest rates and heavy falls in the Nasdaq market.
Poor performance of technology companies in Singapore, Korea and Taiwan was a
complete reversal of the out-performance we saw in the first quarter.

As investors became more sanguine about U.S. interest rates, Asian stock
markets rebounded in June, even though the share price recovery in most of the
smaller companies again lagged larger companies. The Hong Kong economic recovery
continued, particularly with private consumption as banks focused on consumer
lending and mass-market retailers saw strong growth.

The semiconductor sector, dominated by larger companies, performed well due
to strong demand, a supply shortage and firm pricing. Downstream electronic
manufacturers such as Venture Manufacturing and Natsteel Electronics in
Singapore are exposed to the widespread shortages of components due to
exceptionally strong demand, not only from the U.S. but also from the
Asia-Pacific and Europe. Although their order backlogs are much stronger this
year than last, manufacturers cannot meet their customers' demands due to the
component shortages. We expect this situation to continue until component
supplies catch up with demand in the next six months.

Taiwan's technology sector followed the sharp Nasdaq correction.
Additionally cross-straits tensions have re-emerged following the March
presidential election in Taiwan. The ex-ruling party has been selling its equity
investments, and both local mutual funds and retail investors have followed
suit. The very near term outlook for the stock market is quite difficult.
However, we still like the Taiwanese stock market on the back of strong momentum
in electronic exports. Sales figures for the electronic sector were encouraging
in the first half, especially from the semiconductor companies.

14
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND (CONTINUED)

THE FUND

The fund has benefited from strong returns in core holdings in countries
such as Singapore, Korea and Malaysia where the portfolio was well positioned
for the sharp economic recovery that took place. Since the 3Q99, we have
increasingly focused on the technology sector, and the technology stocks in the
portfolio have performed well.

Also, we have focused on increasing the Taiwanese weighting. To reflect our
positive view, we increased Taiwan's weighting in the portfolio from 15% to 27%
during the first half of this year. In Taiwan, the combination of buoyant
liquidity, improving economic conditions and accelerating earnings should drive
the stock market in the months ahead. Zyxel Communications, Realtek
Semiconductor, DB Telecom and Procomp Informatics are growth companies focusing
on semiconductor, telecom/wireless and components businesses. Additional new
holdings in this sector include World Wiser (printed circuit boards
manufacturer), Weltrend Semiconductor (integrated circuit driver for flat-screen
TVs) and Stark Technology (system integrator for integrated circuit companies).

We decreased Thailand's weighting from 6% to 2% during this period due to
concerns about the sustainability of economic recovery on the back of slow debt
restructuring. We also trimmed defensive holdings such as Hung Hing Printing,
Cafe De Coral, Guangdong Kelon, and China Pharmaceutical to make room for the
increase in Taiwan. Due to their strong performance and in part to meet
redemptions, we took profits in Datacraft, Venture Manufacturing and ASM
Pacific. We believe that all the good news regarding Malaysia's re-inclusion in
the MSCI indices has been reflected in the market and have therefore changed our
view on Malaysia from overweight to underweight.

OUTLOOK

The increase in information technology spending due to demand from the new
economy has helped the profit outlook for the Asian electronics industry. This
demand is coming not just from Asia but from global demand for access to the
Internet, wireless phones, etc. Electronics is a significant portion of Asian
exports and one of the largest sectors in most Asian stock markets. Although
there has been recent volatility and weakness on the Nasdaq, share prices of
Asian electronics manufacturers have held up relatively well. We prefer
manufacturers and existing businesses that are embracing the Internet, which we
believe can be found in the Taiwan smaller companies' universe, rather than the
new start-up companies. Going forward, we will continue to seek investment
opportunities in the Taiwanese electronics sector.

15
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND (CONTINUED)

Throughout Asia, domestic economies have all recovered from the 1997-1998
recessionary period, and several are growing very rapidly. With strong external
and internal demand, Asian economies should continue to be healthy this year,
which bodes well for equity investments.

Although there is uncertainty regarding U.S. interest rates and a U.S.
economic hard landing, the impact of either scenario on Asia should be minimal.
Asia has very low inflation with abundant liquidity (the only exception is Hong
Kong due to the pegged currency), and hence, there is very little upward
pressure on interest rates. A U.S. hard landing will affect end-demand for Asian
exports, but we believe Asian companies are currently more sensitive to the
global outsourcing trend than to global end demand.

We remain bullish on Asian equities and the prospects for good quality
technology companies and domestic plays. We believe that the global adoption of
the Internet and e-commerce by both consumers and corporations will result in
strong demand for integrated circuits, flash memory chips, telecom equipment and
related services, areas in which Asia has a significant involvement. However, we
believe the divergent performance between larger and smaller companies will
continue due to insufficient participation from retail investors. Their
confidence remains fragile due to the recent severe correction in the technology
sector. The return of investors' confidence is essential for smaller companies
to perform.

-- Agnes Chow
Hong Kong

16
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND
--------------------------------------------------------------------------------
FUND HIGHLIGHTS
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
# of Holdings in Portfolio: 52
Portfolio Turnover: 36.8%
% of Stocks in Top 10: 37.0%
</TABLE>

FUND MANAGERS:
Robert Conlon; Agnes Chow

<TABLE>
<CAPTION>
TOP 10 HOLDINGS (% OF NET ASSETS)
<S> <C>
-------------------------------------
Ambit Microsystems Corp. 4.5%
ASM Pacific Technology 4.5%
Giordano International Ltd. 4.2%
Realtek Semiconductor Corp. 4.1%
Datacraft Asia Ltd. 3.5%
Dah Sing Financial Holdings 3.4%
Esprit Holdings Ltd. 3.2%
QPL Intl Oldings Ltd. 3.2%
World Peace Indust 3.2%
Zyxel Communications Corp. 3.2%
<CAPTION>
TOP 5 SECTORS (% OF NET ASSETS)
-------------------------------------
<S> <C>
Electronics 23.1%
Computers 15.0%
Retail 9.7%
Banking 6.6%
Computer Equipment 6.5%
<CAPTION>
TOP 5 COUNTRIES (% OF NET ASSETS)
-------------------------------------
<S> <C>
Hong Kong 38.9%
Taiwan 27.7%
Singapore 12.0%
South Korea 9.6%
Malaysia 7.8%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE GUINNESS FLIGHT
ASIA SMALL CAP FUND AND THE HSBC JAMES CAPEL SOUTHEAST ASIA SMALLER
COMPANIES INDEX (HSBC JAMES CAPEL SASC INDEX)

<TABLE>
<CAPTION>
HSBC JAMES
GUINNESS FLIGHT ASIA CAPEL SASC
<S> <C> <C>
Small Cap Fund Index
4/29/96* $10,000 $10,000
6/30/96 $10,461 $9,530
9/30/96 $10,397 $9,467
12/31/96 $11,308 $9,720
3/31/97 $12,046 $10,336
6/30/97 $13,406 $9,999
9/30/97 $12,504 $7,820
12/31/97 $7,829 $4,464
3/31/98 $7,684 $5,116
6/30/98 $5,005 $3,280
9/30/98 $4,530 $2,921
12/31/98 $5,415 $3,822
03/31/1999 $4,916 $3,765
06/30/1999 $6,911 $5,900
09/30/1999 $6,517 $5,138
12/31/1999 $7,712 $5,478
3/31/00 $8,069 $5,548
6/30/00 $6,358 $4,477
</TABLE>

<TABLE>
<CAPTION>
* INCEPTION DATE.
AVERAGE ANNUAL TOTAL RETURN
<S> <C>
One Year Since Inception
-8.01% -10.28%
</TABLE>

17
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND

SCHEDULE OF INVESTMENTS BY COUNTRY

AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
SHARES
COMMON STOCKS: 100.0%
VALUE
-------------------------------------------------------------------------------
<C> <S> <C>
HONG KONG: 38.9%
320,000 ASM Pacific Technology................................ $ 1,198,663
510,000 China Pharmaceutical Enterprises...................... 10,468
1,130,000 Culturecom Holdings Ltd.*............................. 163,803
227,214 Dah Sing Financial Holdings........................... 915,228
830,840 Esprit Holdings Ltd................................... 863,310
740,000 Giordano International Ltd............................ 1,124,901
130,000 Global Tech (Holdings) Ltd.*.......................... 150,090
2,000,000 Glorious Sun Enterprises Ltd.......................... 558,025
5,144,000 Hanny Holdings Ltd.................................... 343,138
1,350,400 HKR International Ltd................................. 541,348
900,000 Hung Hing Print Group................................. 346,360
1,480,000 JCG Holdings Ltd...................................... 740,441
1,920,000 Pine Technology....................................... 263,542
600,000 QPL Intl Oldings Ltd.................................. 862,052
1,000,000 Quality Healthcare Asia Ltd........................... 295,048
400,000 Shui On Construction.................................. 564,439
1,500,000 TCL International Holdings Ltd.*...................... 548,404
4,508,000 Texwinca Holdings Ltd................................. 676,603
100,000 Varitronix Intl Ltd................................... 173,822
-----------
10,339,685
-----------
MALAYSIA: 7.8%
360,000 Gamuda Berhad......................................... 416,842
400,000 Hong Leong Bank....................................... 642,105
400,000 Public Finance - Foreign.............................. 423,158
84,000 Unisem Berhad......................................... 596,842
-----------
2,078,947
-----------
PHILIPPINES: 2.3%
7,400,000 Cosmos Bottling Corp.................................. 403,979
202,500 Equitable Banking Corp................................ 206,107
-----------
610,086
-----------
</TABLE>

18
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND

SCHEDULE OF INVESTMENTS BY COUNTRY

AT JUNE 30, 2000 (UNAUDITED) -- (CONTINUED)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
SHARES
VALUE
-------------------------------------------------------------------------------
<C> <S> <C>
SINGAPORE: 12.0%
104,800 Datacraft Asia Ltd.................................... $ 922,240
540,000 First Capital Corp.................................... 515,133
620,000 Flextech Holdings Ltd................................. 426,560
170,000 Natsteel Electronics Ltd.............................. 520,915
80,000 Venture Manufacturing................................. 814,038
-----------
3,198,886
-----------
SOUTH KOREA: 9.6%
96,000 Comtec Systems Co., Ltd............................... 495,056
67,505 Dauo Technology, Inc.................................. 653,846
1,397 Dongwon Securities Co................................. 10,070
77,800 Korea Circuit Co...................................... 391,433
54,600 Pantech............................................... 420,141
13,280 Shinsegae Department Stores........................... 583,592
-----------
2,554,138
-----------
TAIWAN: 27.7%
121,250 Ambit Microsystems Corp............................... 1,203,621
135,000 Dialer & Bus Elec..................................... 254,841
60 D-Link Corp........................................... 141
71,980 Procomp Informatics Co., Ltd.*........................ 372,492
88,000 Prodisc International................................. 592,872
130,000 Realtek Semiconductor Corp............................ 1,087,388
44,000 Stark Technology, Inc.*............................... 587,144
152,600 Systex Corp........................................... 536,397
146,000 Weltrend Semiconductor, Inc.*......................... 522,701
182,000 World Peace Indust.................................... 847,063
15,860 World Peace Industrial*............................... 30,522
112,000 World Wiser Electronics, Inc.*........................ 302,555
100,000 Wyse Tech Taiwan...................................... 179,007
255,000 Zyxel Communications Corp............................. 838,243
-----------
7,354,987
-----------
</TABLE>

19
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND

SCHEDULE OF INVESTMENTS BY COUNTRY

<TABLE>
<C><S> <C>
* Non-income producing security.
+ At June 30, 2000, the basis of investments for federal income tax
purposes was the same as their cost for financial reporting purposes.
Unrealized appreciation and depreciation were as follows:
Gross unrealized appreciation..................................... $ 7,373,270
Gross unrealized depreciation..................................... (5,889,226)
-----------
Net unrealized appreciation....................................... $ 1,484,044
===========
</TABLE>

See accompanying Notes to Financial Statements.

20
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
------------------------------------------------------------------------
% OF
INDUSTRY NET ASSETS
------------------------------------------------------------------------
<S> <C>
Banking..................................................... 6.6%
Cable TV.................................................... 1.1
Computer Equipment.......................................... 6.5
Computers................................................... 15.0
Construction................................................ 3.7
Consumer Related............................................ 4.6
Electronics................................................. 23.1
Finance..................................................... 5.0
Food & Beverage............................................. 1.5
Manufacturing............................................... 5.2
Materials................................................... 1.3
Medical Products............................................ 1.1
Pharmaceuticals............................................. 0.0
Publishing.................................................. 0.6
Real Estate................................................. 4.0
Retail...................................................... 9.7
Technology.................................................. 2.2
Telecommunications.......................................... 5.6
Wholesale................................................... 3.2
------
TOTAL INVESTMENTS IN SECURITIES............................. 100.0
OTHER ASSETS LESS LIABILITIES............................... 0.0
------
NET ASSETS.................................................. 100.00%
======
</TABLE>

See accompanying Notes to Financial Statements.

21
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND

STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, at value (cost $25,111,459)...... $ 26,595,503
Receivables:
Securities sold......................................... 362,145
Fund shares sold........................................ 17
Dividends and interest.................................. 12,584
Prepaid expenses............................................ 59,313
Deferred organization costs................................. 1,445
------------
Total assets............................................ 27,031,007
------------

LIABILITIES
Cash overdraft.............................................. 379,765
Payables:
Due to advisor (Note 3)................................. 11,844
Unrealized loss on forward foreign currency contracts... 1,485
Accrued expenses............................................ 37,749
------------
Total liabilities....................................... 430,843
------------
NET ASSETS.................................................. $ 26,600,164
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($26,600,164/3,391,038 shares outstanding; unlimited
number of shares authorized without par value).......... $7.84
-----
------
COMPONENTS OF NET ASSETS
Paid-in capital......................................... $113,646,536
Accumulated net investment loss......................... (48,862)
Accumulated net realized loss on investments and foreign
currency.............................................. (88,479,107)
Net unrealized appreciation (depreciation) on:
Investments......................................... 1,484,044
Foreign Currency.................................... (2,447)
------------
NET ASSETS.................................................. $ 26,600,164
============
</TABLE>

See accompanying Notes to Financial Statements.

22
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND

STATEMENT OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
JUNE 30, 2000
<S> <C>
----------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends (net of foreign tax withheld of $26,321).......... $ 276,186
Interest.................................................... 2,610
------------
Total income............................................ 278,796
------------

EXPENSES
Advisory fees (Note 3)...................................... 165,483
Transfer agent fees......................................... 72,957
Administration fees (Note 3)................................ 41,371
Custody fees................................................ 40,169
Fund accounting fees........................................ 24,505
Reports to shareholders..................................... 13,486
Audit fees.................................................. 8,846
Registration expense........................................ 8,095
Legal fees.................................................. 4,567
Trustee fees................................................ 2,994
Insurance expense........................................... 1,859
Miscellaneous............................................... 1,820
Amortization of deferred organization costs................. 872
------------
Total expenses.......................................... 387,024
Less: Fees waived (Note 3).............................. (59,366)
------------
Net expenses............................................ 327,658
------------
NET INVESTMENT LOSS................................. (48,862)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain on investments............................ 860,989
Net realized loss on foreign currency....................... (16,569)
Net unrealized depreciation on:
Investments............................................. (6,404,317)
Foreign currency........................................ (3,534)
------------
Net realized and unrealized loss on investments and
foreign currency...................................... (5,563,431)
------------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $ (5,612,293)
============
</TABLE>

See accompanying Notes to Financial Statements.

23
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND

STATEMENT OF CHANGES IN NET ASSETS

INCREASE (DECREASE) IN NET ASSETS FROM:

OPERATIONS
Net investment income (loss)............. $ (48,862) $ 180,602
Net realized gain (loss) on
investments............................ 860,989 (7,588,710)
Net realized loss on foreign currency.... (16,569) (36,295)
Net unrealized appreciation
(depreciation) on:
Investments.......................... (6,404,317) 18,363,984
Foreign currency..................... (3,534) 2,364
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.......... (5,612,293) 10,921,945
----------- -----------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income............... -- (296,390)
----------- -----------

CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from
net change in outstanding shares (a)... (5,461,464) (22,368,510)
----------- -----------
TOTAL DECREASE IN NET ASSETS......... (11,073,757) (11,742,955)

NET ASSETS
Beginning of period...................... 37,673,921 49,416,876
----------- -----------
END OF PERIOD............................ $26,600,164 $37,673,921
=========== ===========
</TABLE>

(a) A summary of capital share transactions is as follows:

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
JUNE 30, 2000# ENDED
------------------------------------------------------- DECEMBER 31, 1999
--------------------------- -------------------------
SHARES VALUE SHARES
------------------------------------------------------- VALUE
<S> <C> <C> <C> <C>
Shares sold............... 598,329 $ 5,233,666 1,407,392 $ 11,051,386
Shares issued in
reinvestment of
distributions........... -- -- 27,499 261,515
Shares redeemed........... (1,167,124) (10,695,130) (4,823,217) (33,681,411)
----------- ------------- ---------- ------------
NET DECREASE.............. (568,795) $ (5,461,464) (3,388,326) $(22,368,510)
=========== ============= ========== ============
</TABLE>

# Unaudited.

See accompanying Notes to Financial Statements.

24
<PAGE>
GUINNESS FLIGHT ASIA SMALL CAP FUND

FINANCIAL HIGHLIGHTS

FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
APRIL 29,
SIX MONTHS YEAR ENDED 1996*
ENDED DECEMBER 31, THROUGH
JUNE 30, ------------------------------ DECEMBER 31,
2000# 1999 1998 1997 1996
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 9.51 $ 6.73 $ 9.73 $ 14.10 $12.50
------- ------ ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).......... (0.01) 0.05 0.06 0.07 0.02
Net realized and unrealized gain
(loss) on investments and foreign
currency............................ (1.66) 2.81 (3.06) (4.38) 1.61
------- ------ ------- ------- ------
Total from investment operations........ (1.67) 2.86 (3.00) (4.31) 1.63
------- ------ ------- ------- ------
LESS DISTRIBUTIONS:
From net investment income............ -- (0.08) -- -- (0.02)
From net realized gain................ -- -- -- (0.01) (0.01)
Return of capital..................... -- -- -- (0.05) --
------- ------ ------- ------- ------
Total distributions..................... -- (0.08) -- (0.06) (0.03)
------- ------ ------- ------- ------
Net asset value, end of period.......... $ 7.84 $ 9.51 $ 6.73 $ 9.73 $14.10
======= ====== ======= ======= ======
Total return............................ (17.56)%++ 42.43 % (30.83)% (30.77)% 13.08 %++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions).... $ 26.6 $ 37.7 $ 49.4 $ 108.5 $ 50.9
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived, expenses absorbed
or recouped......................... 2.34 %+ 2.39 % 2.31 % 1.76 % 3.09 %+
After fees waived, expenses absorbed
or recouped......................... 1.98 %+ 1.98 % 1.98 % 1.80 % 1.98 %+
RATIO OF NET INVESTMENT INCOME (LOSS) TO
AVERAGE NET ASSETS:
Before fees waived, expenses absorbed
or recouped......................... (0.66)%+ 0.07 % 0.52 % 0.53 % (0.76)%+
After fees waived, expenses absorbed
or recouped......................... (0.30)%+ 0.48 % 0.85 % 0.49 % 0.36 %+

Portfolio turnover rate................. 36.77 %++ 67.24 % 48.95 % 52.33 % 21.91 %++
BANK LOANS
Amount outstanding at end of period
(millions)............................ n/a $ --^ $ 0.81 n/a n/a
Average amount of bank loans oustanding
during the period (monthly average)
(millions)............................ n/a $ 0.65^ $ 0.07 n/a n/a
Average number of shares outstanding
during the period (monthly average)
(millions)............................ n/a 5.52^ 6.57 n/a n/a
Average amount of debt per share during
the period............................ n/a $ 0.12^ $ 0.01 n/a n/a
</TABLE>

<TABLE>
<S> <C>
# Unaudited
* Commencement of operations.
+ Annualized.
++ Not annualized.
^ The Fund's line of credit expired June 15, 1999.
</TABLE>

See accompanying Notes to Financial Statements.

25
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND

BACKDROP

Outside the Hang Seng Index, the Hong Kong market was led, as in most other
parts of the world, by the technology and media sectors. A raft of new issues
came to the market with Li Ka Shing's Internet offering, Tom.com, marking the
high point in investor sentiment during the first quarter. The commercial &
industrial sector rose over 20% over the quarter while banks, real estate and
utilities all fell between 4% and 17%. Of the major stocks in the index, China
Mobile (name changed from China Telecom), Hutchison Whampoa, and Cheung Kong
outperformed significantly while HSBC and Cable & Wireless HKT underperformed by
16% and 9% respectively.

Into the second quarter, the market fell steadily before staging a 10% rally
in June led by the property and the commercial & industrial sectors. Over the
second quarter as a whole within the Hang Seng Index, Johnson Electric, Cathay
Pacific and Swire Pacific were the strongest performers, while Hutchison
Whampoa, Cheung Kong and the property developers were the weakest. China Mobile
ended the second quarter almost unchanged following a rise of 18% in June,
giving it a weight of over 26% in the Index. HSBC continued its modest
performance, outperforming in down markets.

Economic growth continues to be driven by strong trade numbers and a small
pickup in fixed asset investment. While retail sales figures are positive in
both volume and value terms, deflation and high real interest rates are still
putting pressure on aggregate private consumption, which is particularly evident
in the residential real estate sector. Property prices are still well below
their peak while individual and corporate leverage is low. Property launches
have been lacklustre affairs and have done nothing to dispel the sense of
caution in this sector. Overall, progress is good, but the broad-based recovery
is still a few months away.

Among a number of notable events, China Unicom, the number two telecoms
company in China, was successfully floated and is Hong Kong's largest new issue
to date. In the face of domestic pressure over depressed property prices, the
government backed away from its aggressive policy target of 85,000 new units per
annum. It also decided to hold back 16,000 public sector units over the next
three years, choosing to rent rather than sell them. Finally, Hong Kong's
economy grew 14% year on year in the first quarter driven by exports, and trade
growth has continued to be strong in April and May.

THE FUND

The makeup of the portfolio has been split between those companies that are
beneficiaries of the Asian recovery and those companies with solid track records
which are incorporating new technologies into an established business plan. The
fund has had little Internet exposure, limited to Pacific Century Cyberworks.

26
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND (CONTINUED)

The portfolio is 81% invested in Hang Seng Index components, has a 33%
divergence from the Index and consists of 23 holdings, as compared with 89% in
the Hang Seng Index, a 29% divergence and 35 holdings at December 31, 1999.

The reduction in the banking sector has been at the expense both of HSBC and
Hang Seng Bank, which have been cut in the expectation of mediocre performance
to meet redemptions. In the property sector, exposure consists of Cheung Kong
with its 50% stake in Hutchison Whampoa and Sun Hung Kai Properties. Property
prices are expected to remain weak in the face of a large supply overhang. In
the utility sector, we sold CLP Holdings and Hong Kong Electric, and placed the
proceeds in the conglomerates sector. We also increased holdings in Cathay
Pacific and retailers Giordano and Esprit, while eliminating the position in
Smartone because of sharply deteriorating prospects and selling Cosco after a
strong rally related to China's WTO negotiations.

It should be noted that the very marked changes in sector weightings are
also due to the divergent nature of the market's performance. By way of example,
China Mobile's weight in the Hang Seng Index had risen from 17.8% to 24.3% over
the first quarter. In the second quarter, we increased our holdings in China
Mobile and subscribed to China Unicom. The purchase of China Mobile took the
portfolio position to neutral, but following the strong rally in June, the
position had to be cut back to below 25% to remain within fund parameters.

OUTLOOK

The portfolio has been tilted decisively toward those stocks benefiting from
the cyclical recovery and toward those companies adapting to technological
change. Hong Kong is now firmly on a growth path.

In the longer term, Hong Kong is making great efforts to reduce the historic
reliance on property and bank earnings. The deregulation of the telecoms market
and government support for Hong Kong's development as a regional communications
hub convince us that the SAR will succeed in reinventing itself once again. The
market has reflected this shift with the much reduced importance of the property
sector and the move of telecommunications out of the utilities sector and into
the broader commercial & industrial sector. More changes to the makeup of the
Hang Seng Index are expected.

The strategy of the fund will continue to be driven by a focus on companies
delivering growth in their underlying businesses and in earnings. The recent
correction in the stock markets does not alter our view that those companies
with a good management track record and are incorporating new business methods
into their core business plans will be the long term outperformers.

27
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND (CONTINUED)

The fund remains overweight in mass consumer areas, such as lower-end
retailing, overweight in manufacturing (exporters), and overweight in transport
(i.e., Cathay Pacific) as the region recovers. We are also overweight in
domestic banks, but here it is for stock specific reasons, as Dao Heng and Dah
Sing Financial successfully increase margins by moving into consumer lending. We
will continue to be underweight in residential real estate with the bulk of the
exposure accounted for by Cheung Kong, which is effectively a cheap way into
Hutchison Whampoa.

We will be looking for genuine changes in sentiment in the property market.
Catalysts for such a change would include rising inflation and falling real
interest rates together with a reduction in the number of unsold units that
overhang the market. Both of these catalysts will take time to achieve. The
underweight position in HSBC is also under review. The company's performance has
been hindered by global factors as well as technical issues surrounding its
purchase of CCF in France. However, these negatives could change once U.S.
interest rates are seen to have peaked and the benefits of its recent
acquisitions start to flow through.

-- Edmund Harriss
Hong Kong

28
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND
--------------------------------------------------------------------------------
FUND HIGHLIGHTS
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
# of Holdings in Portfolio: 23
Portfolio Turnover: 18.4%
% of Stocks in Top 10: 74.1%
</TABLE>

FUND MANAGERS:
Edmund Harriss; Adrian Fu

<TABLE>
<CAPTION>
TOP 10 HOLDINGS (% OF NET ASSETS)
<S> <C>
-------------------------------------
China Mobile (Hong Kong) Ltd.
24.6%
Hutchison Whampoa 13.6%
Cheung Kong 7.1%
Johnson Electric Holdings 5.3%
HSBC Holdings Plc 5.0%
Li & Fung Ltd. 4.7%
Cathay Pacific Airways 3.7%
Cable & Wireless HKT 3.6%
Sun Hung Kai Properties Ltd. 3.4%
Hang Seng Bank 3.1%
<CAPTION>
TOP 5 SECTORS (% OF NET ASSETS)
-------------------------------------
<S> <C>
Telecommunications 24.9%
Holding Offices 16.4%
Real Estate 10.5%
Commercial Banks 8.9%
Communication Services 5.5%
<CAPTION>
TOP COUNTRY (% OF NET ASSETS)
-------------------------------------
<S> <C>
Hong Kong 100.1%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE GUINNESS FLIGHT CHINA & HONG KONG FUND AND HANG SENG INDEX

<TABLE>
<CAPTION>
GUINNESS FLIGHT CHINA & HONG KONG HANG SENG
FUND INDEX
<S> <C> <C>
6/30/94* $10,000 $10,000
9/30/94 $10,616 $10,871
12/31/94 $9,226 $9,352
3/31/95 $9,274 $9,805
6/30/95 $10,040 $10,512
9/30/95 $10,680 $11,014
12/31/95 $11,112 $11,501
3/31/96 $12,066 $12,510
6/30/96 $12,254 $12,582
9/30/96 $13,054 $13,589
12/31/96 $14,933 $15,358
3/31/97 $13,828 $14,311
6/30/97 $17,080 $17,351
9/30/97 $16,595 $17,183
12/31/97 $11,896 $12,243
3/31/98 $11,803 $13,151
6/30/98 $8,634 $9,754
9/30/98 $7,990 $8,987
12/31/98 $10,079 $11,455
3/31/99 $10,603 $12,493
6/30/99 $13,111 $15,450
9/30/99 $12,680 $14,538
12/31/99 $16,759 $19,366
3/31/00 $17,510 $19,831
6/30/00 $16,417 $18,385
</TABLE>

<TABLE>
<CAPTION>
* INCEPTION DATE.
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR FIVE YEARS SINCE INCEPTION
<S> <C> <C>
25.21% 10.33% 8.61%
</TABLE>

29
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
SHARES
COMMON STOCKS: 100.1%
VALUE
-------------------------------------------------------------------------------
<C> <S> <C>
AIRLINES: 3.7%
2,747,000 Cathay Pacific Airways............................... $ 5,092,029
------------
COMMERCIAL BANKS: 8.9%
961,050 Dah Sing Financial Holdings.......................... 3,871,150
937,500 Dao Heng Bank Group Ltd.............................. 4,149,108
445,000 Hang Seng Bank....................................... 4,224,313
------------
12,244,571
------------
COMMUNICATION SERVICES: 5.5%
2,257,800 Cable & Wireless HKT................................. 4,967,227
1,210,000 China Unicom Ltd.*................................... 2,568,903
------------
7,536,130
------------
COMPUTERS: 1.4%
1,904,000 Legend Holdings Ltd.................................. 1,844,074
------------
ELECTRICAL INDUSTRIAL APPARATUS: 5.3%
763,000 Johnson Electric Holdings............................ 7,218,566
------------
FAMILY CLOTHING STORES: 5.1%
2,887,071 Esprit Holdings Ltd.................................. 2,999,901
2,624,000 Giordano International Ltd........................... 3,988,840
------------
6,988,741
------------
FOREIGN BANKS: 5.0%
601,324 HSBC Holdings Plc.................................... 6,865,354
------------
GAS PRODUCTION & DISTRIBUTION: 1.0%
1,193,659 Hong Kong & China Gas................................ 1,339,839
------------
HOLDING OFFICES: 16.4%
735,000 Citic Pacific Ltd.................................... 3,846,909
1,485,000 Hutchison Whampoa.................................... 18,668,822
------------
22,515,731
------------
INTERNET SERVICES: 2.2%
1,520,000 Pacific Century Cyberworks........................... 3,002,816
------------
</TABLE>

30
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

<TABLE>
<C><S> <C>
* Non-income producing security.
+ At June 30, 2000, the basis of investments for federal income tax
purposes was the same as their cost for financial reporting purposes.
Unrealized appreciation and depreciation were as follows:
Gross unrealized appreciation................................ $ 58,351,918
Gross unrealized depreciation................................ (3,723,207)
------------
Net unrealized appreciation................................... $ 54,628,711
============
</TABLE>

See accompanying Notes to Financial Statements.

31
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND

STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, at value (cost $82,643,736)...... $137,272,447
Receivables:
Securities sold......................................... 2,228,367
Dividends and interest.................................. 230,017
Fund shares sold........................................ 44,559
Prepaid expenses............................................ 32,699
------------
Total assets............................................ 139,808,089
------------

LIABILITIES
Cash overdraft.............................................. 2,479,856
Payables:
Due to advisor (Note 3)................................. 113,690
Unrealized loss on forward foreign currency contracts... 292
Accrued expenses............................................ 132,217
------------
Total liabilities....................................... 2,726,055
------------
NET ASSETS.................................................. $137,082,034
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($137,082,034/7,927,314 shares outstanding; unlimited
number of shares authorized without par value).......... $17.29
------
-------
COMPONENTS OF NET ASSETS
Paid-in capital......................................... $156,963,598
Accumulated net investment income....................... 199,401
Accumulated net realized loss on investments and foreign
currency.............................................. (74,709,248)
Net unrealized appreciation (depreciation) on:
Investments........................................... 54,628,711
Foreign Currency...................................... (428)
------------
NET ASSETS.................................................. $137,082,034
============
</TABLE>

See accompanying Notes to Financial Statements.

32
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND

STATEMENT OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
JUNE 30, 2000
<S> <C>
----------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends................................................... $ 1,450,292
Interest.................................................... 4,706
-----------
Total income............................................ 1,454,998
-----------

EXPENSES
Advisory fees (Note 3)...................................... 717,716
Administration fees (Note 3)................................ 179,429
Transfer agent fees......................................... 150,019
Custody fees................................................ 86,220
Reports to shareholders..................................... 29,157
Fund accounting fees........................................ 24,462
Legal fees.................................................. 21,178
Registration expense........................................ 15,294
Audit fees.................................................. 12,558
Insurance expense........................................... 6,576
Trustee fees................................................ 6,537
Miscellaneous............................................... 6,451
-----------
Total expenses.......................................... 1,255,597
-----------
NET INVESTMENT INCOME............................... 199,401
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain on investments............................ 5,572,528
Net realized loss on foreign currency....................... (3,823)
Net unrealized depreciation on:
Investments............................................. (8,735,628)
Foreign currency........................................ (421)
-----------
Net realized and unrealized loss on investments......... (3,167,344)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $(2,967,943)
===========
</TABLE>

See accompanying Notes to Financial Statements.

33
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND

STATEMENT OF CHANGES IN NET ASSETS

OPERATIONS
Net investment income.................... $ 199,401 $ 2,059,290
Net realized gain on investments......... 5,572,528 6,767,295
Net realized loss on foreign currency.... (3,823) (11,221)
Net unrealized appreciation
(depreciation) on:
Investments.......................... (8,735,628) 64,507,073
Foreign currency..................... (421) 573
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.......... (2,967,943) 73,323,010
------------ ------------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income............... -- (2,356,556)
------------ ------------

CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from
net change in outstanding shares (a)... (23,321,631) (54,404,664)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................. (26,289,574) 16,561,790
NET ASSETS
Beginning of period 163,371,608 146,809,818
------------ ------------
END OF PERIOD (including accumlated net
investment income of $199,401 and $0,
respectively).......................... $137,082,034 $163,371,608
============ ============
</TABLE>

(a) A summary of capital share transactions is as follows:

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
JUNE 30, 2000# ENDED
-------------------------------------------------- DECEMBER 31, 1999
------------------------- ----------------------------
SHARES VALUE SHARES
-------------------------------------------------- VALUE
<S> <C> <C> <C> <C>
Shares sold............ 1,445,194 $ 24,547,499 4,077,661 $ 51,982,170
Shares issued in
reinvestment of
distributions........ -- -- 122,137 2,155,716
Shares redeemed........ (2,773,593) (47,869,130) (8,576,220) (108,542,550)
---------- ------------ ----------- -------------
NET DECREASE........... (1,328,399) $(23,321,631) (4,376,422) $ (54,404,664)
========== ============ =========== =============
</TABLE>

# Unaudited.

See accompanying Notes to Financial Statements.

34
<PAGE>
GUINNESS FLIGHT CHINA & HONG KONG FUND

FINANCIAL HIGHLIGHTS

FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------------------------------------
JUNE 30, ----------------------------------------------------------
2000# 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 13.58 $ 6.70 $ 8.84 $ 13.64 $ 13.64 $ 11.47
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income........................... 0.03 0.23 0.15 0.20 0.19 0.14
Net realized and unrealized gain (loss) on
investments and foreign currency.............. (0.39) 6.91 (2.14) (3.71) 4.43 2.20
--------- --------- --------- --------- --------- ---------
Total from investment operations.................. (0.36) 7.14 (1.99) (3.51) 4.62 2.34
--------- --------- --------- --------- --------- ---------

LESS DISTRIBUTIONS:
From net investment income...................... -- (0.26) (0.15) (0.20) (0.19) (0.14)
From net realized gain.......................... -- -- -- (1.09) (0.36) (0.03)
--------- --------- --------- --------- --------- ---------
Total distributions............................... -- (0.26) (0.15) (1.29) (0.55) (0.17)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.................... $ 13.22 $ 13.58 $ 6.70 $ 8.84 $ 17.71 $ 13.64
========= ========= ========= ========= ========= =========

Total return...................................... (2.04)%++ 66.27 % (15.27)% (20.34)% 34.38 % 20.45 %

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions).............. $ 137.1 $ 163.4 $ 146.8 $ 241.8 $ 311.5 $ 55.7
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived, expenses absorbed or
recouped...................................... 1.75 %+ 1.86 % 1.89 % 1.70 % 1.78 % 3.02 %**
After fees waived, expenses absorbed or
recouped...................................... 1.75 %+ 1.86 % 1.89 % 1.70 % 1.96 % 1.98 %
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET
ASSETS:
Before fees waived, expenses absorbed or
recouped...................................... 0.28 %+ 1.45 % 1.60 % 1.18 % 1.57 % 0.49 %
After fees waived, expenses absorbed or
recouped...................................... 0.28 %+ 1.45 % 1.60 % 1.18 % 1.39 % 1.52 %

Portfolio turnover rate......................... 18.44 %++ 29.49 % 86.59 % 53.62 % 30.40 % 10.89 %
BANK LOANS
Amount outstanding at end of period (millions).... n/a $ --^ $ 4.27 $ -- $ -- n/a
Average amount of bank loans oustanding during the
period (monthly average) (millions)............. n/a $ 1.02^ $ 8.77 $ 2.31 $ 1.41 n/a
Average number of shares outstanding during the
period (monthly average) (millions)............. n/a 12.04^ 18.53 16.94 11.42 n/a
Average amount of debt per share during the
period.......................................... n/a $ 0.08^ $ 0.47 $ 0.14 $ 0.12 n/a
</TABLE>

<TABLE>
<S> <C>
# Unaudited
* Commencement of operations.
+ Annualized.
++ Not annualized.
^ The Fund's line of credit expired June 15, 1999.
** Includes indirectly paid expenses. Ratio of expenses to
average net assets excluding indirectly paid expenses for
December 31, 1995, was 3.04%.
</TABLE>

See accompanying Notes to Financial Statements.

35
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND

BACKDROP

Following a strong fourth quarter in 1999 and a particularly strong
December, Nasdaq traded lower over the first few sessions of the new year. While
fallout from Y2K-related incidents was virtually non-existent, investors took
profits. For new investors, it proved to be an opportunity to go bottom-fishing,
and those who replicated Nasdaq between January 7 and March 31 would have
realized a gain of about 23 percent. Investors in Old Economy issues saw
sideways to negative movement in the value of their investments. By comparison,
ISDEX-Registered Trademark- rose 16.1 percent over the same period.

The Federal Open Market Committee closely watched inflationary tendencies as
its bias moved from neutral to inflationary. It raised the Fed Funds Rate
consecutively at each meeting until finally deciding at the end of June to keep
the official overnight lending rate unchanged at 6.50 percent and to keep the
discount rate unchanged at 6.00 percent.

Weekly jobless claims numbers throughout the first quarter continued to be
lower than the market anticipated, and changes in manufacturing payrolls were
minimal, both of which signaled ongoing tightness in the labor markets. The
unemployment rate in January was 4.0 percent and 4.1 percent in February.
However, the new economy also appeared to have shaved 2.5 percent off unit labor
costs in the fourth quarter, as well boosting productivity. The benefit to the
economy was fourth quarter GDP growth of 7.3 percent, up from initial estimates
of 5.0 then 6.9 percent.

The decline in the technology-heavy Nasdaq was a continuation of the
weakness seen in the technology area since March. Internet shares suffered
especially, shedding more value than the Nasdaq Composite. However, the weakness
in the broader market was largely caused by economic reports suggesting
overheating in the economy. The rotation out of certain technology areas into
financials and industrials continued.

In spite of the negative sentiment surrounding technology shares, earnings
continued to generally surprise on the upside. Technology bellwether AOL
released earnings figures ahead of consensus estimates. Within ISDEX-Registered
Trademark-, communications/access providers such as Juniper Networks and
Concentric Networks fared best. Equipment stocks Cisco Systems, which became the
largest company in the world by market capitalization, and Broadcom also
returned solid capital gains.

As a number of high profile sites came under siege from hackers in "Denial
of Service" attacks, online security companies such as Checkpoint, RSA Security
and VeriSign benefited from the renewed interested in secure communications and
transactions. Juniper Networks also announced during the second quarter that it
had developed a new chip for its Internet-switching equipment which would detect
and deter hacker attacks. Switches have had the ability to filter but have
relied on software rather than hardware. Network operators have

36
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND (CONTINUED)

been reluctant to use software-based solutions because they slow down network
traffic. Cable & Wireless has indicated that it would deploy the Juniper
solution throughout its network.

Cisco Systems featured prominently in the minds of investors as it continued
to acquire other businesses as well as beat analyst expectations on the
financials. In early April, the company announced an Internet-computing pact
with Oracle and EMC. Their alliance is intended to develop and enhance
electronic commerce products. Among the company's more significant acquisitions
was the purchase of ArrowPoint Communications for about US$5.7 billion in stock.
ArrowPoint makes Internet switches designed to optimize the delivery of content.
A week later, Cisco announced the purchase of Qeyton Systems, a maker of optical
networking gear for metro environments, for US$800 million.

Cisco's second quarter earnings continued the company's trend of 40
consecutive quarters of increasing revenue and profitability. Even so, investors
became increasingly concerned over Cisco's valuation, which led to the stock
selling off, which in turn led to further broad market weakness. With the
valuations of technology shares coming under increasing scrutiny, the technology
component of all the major indices drove these indices down.

Reflecting developments in the broad economy, we have seen a relative move
to quality in the Internet industry. Of the 50 companies that make up the
ISDEX-Registered Trademark-, slightly less than 40 percent managed to show
positive capital returns during the first quarter. It is increasingly the larger
companies that turn in consistently positive performances, although smaller
companies in the index like Go2Net have reported solid earnings numbers.
Overall, market swing has been toward those companies that offer hardware,
software or an exchange forum. Content providers, general portals and
advertisers like DoubleClick have been less in favor.

THE FUND

We employed the full replication method in tracking ISDEX-Registered
Trademark-. As a result, all 50 constituent stocks were bought in their
respective index weightings. All cashflows were fully invested in the 50
constituent stocks at the weights represented by ISDEX-Registered Trademark-.

During the first quarter, i2 Technologies, VerticalNet and Vignette replaced
Beyond.com, iVillage and Mindspring Enterprises. Earthlink Net and Mindspring
Enterprises merged to form Earthlink Inc. VerticalNet was simultaneously brought
into the index to take the place of Mindspring Enterprises. In another change,
USWeb combined with Whittman-Hart to become MarchFirst.

Two additional changes to the index and the fund followed in the second
quarter. Allaire and Portal Software replaced Concentric Networks and Network
Solutions. Concentic Networks was acquired by NEXTLINK Communications. NEXTLINK
provides telecommunications services to commercial customers. Although
Concentric Networks might be a good

37
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND (CONTINUED)

fit for NEXTLINK, the index committee removed Concentric Networks on the grounds
that the combined entity would no longer be an Internet-centric company. After
index constituent VeriSign acquired Network Solutions, Portal Software, which
develops and markets customer management and billing services for companies with
an Internet presence, became the 50th company in the index.

OUTLOOK

The Internet sector has been volatile, and unfortunately in the first half
of this year, this volatility was primarily on the downside. The outlook for the
Internet sector, however, is unaffected by this volatility. We remain bullish on
the industry and believe in the potential for the Internet to revolutionize not
just commerce and industry, but nearly all aspect of human interaction. Much has
been written about the Internet and its significance, with a primary emphasis of
"late" on the Internet gold rush. We are of the view that the true potential for
this medium has been understated, and our outlook for the sector can best be
described as excited and optimistic.

-- Doug Blatch
Cape Town

internet.com is a trademark, "ISDEX" is a registered trademark, and ISDEX
and internet.com are service marks of internet.com Corporation, and are used
solely with the express permission of internet.com. internet.com makes no
warranty, express or implied, including warranties of merchantability or fitness
for a particular purpose or otherwise, to any person or entity as to the results
to be obtained from, the performance of or any data included in, or any other
matters concerning the ISDEX Index or the trademarks or service marks described
above. Under the license agreement, internet.com is partially compensated for
its license to Investec Guinness Flight and the Fund of the service mark and
trademarks described above based on the total assets invested in the Fund.

38
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND
--------------------------------------------------------------------------------
FUND HIGHLIGHTS
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
# of Holdings in Portfolio: 50
Portfolio Turnover: 30.1%
% of Stocks in Top 10: 66.0%
</TABLE>

FUND MANAGER:
Doug Blatch

<TABLE>
<CAPTION>
TOP 10 HOLDINGS (% OF NET ASSETS)
<S> <C>
-------------------------------------
Cisco Systems, Inc. 10.4%
America Online, Inc. 9.8%
Yahoo!, Inc. 9.3%
Broadcom Corp. 8.8%
Juniper Networks 8.7%
VeriSign, Inc. 6.1%
Ariba, Inc. 3.6%
Exodus Communications, Inc. 3.2%
i2 Technologies, Inc. 3.1%
Check Point Software
Technology 3.0%
<CAPTION>
TOP 5 SECTORS (% OF NET ASSETS)
-------------------------------------
<S> <C>
Enablers 32.8%
Software 25.7%
Content 22.8%
Security 11.4%
E-tailers and E-commerce 8.4%
<CAPTION>
TOP COUNTRIES (% OF NET ASSETS)
-------------------------------------
<S> <C>
United States 100.2%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND AND INTERNET
INDEX-TM-

<TABLE>
<CAPTION>
GUINNESS FLIGHT
INTERNET.COM INDEX-TM- INTERNET
FUND INDEX-TM-
<S> <C> <C>
7/31/1999* $11,256 $11,541
12/31/99 $18,208 $18,833
3/31/00 $20,273 $21,020
6/30/00 $15,705 $16,294
</TABLE>

*Inception date.

<TABLE>
<CAPTION>
TOTAL RETURN
SINCE INCEPTION
<S> <C>
57.04%

Past performance is not indicative of future performance.
Share value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less
than the original investment.
The index referenced in this chart is not available for
investment and does not incur expenses.
The returns shown above were achieved during a period of
generally rising market values,
especially in the technology sector.
</TABLE>
39
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
SHARES
COMMON STOCKS: 100.2%
VALUE
-------------------------------------------------------------------------------
<C> <S> <C>
ACCESS: 0.1%
5,290 Prodigy Communications Corp.*............................ $ 55,545
-----------
CONTENT: 22.8%
22,040 CMGI, Inc.*.............................................. 1,009,707
6,800 CNET, Inc.*.............................................. 167,025
9,490 Doubleclick, Inc.*....................................... 361,806
2,480 Go2net, Inc.*............................................ 124,775
16,970 Infospace.com, Inc.*..................................... 937,592
8,500 Inktomi Corp.*........................................... 1,005,125
12,340 i2 Technologies, Inc.*................................... 1,286,637
11,600 MarchFirst, Inc.*........................................ 211,700
3,500 Open Market, Inc.*....................................... 48,344
4,130 S1 Corp.*................................................ 96,281
2,080 Sportsline USA, Inc.*.................................... 35,490
5,270 StarMedia Network, Inc.*................................. 99,471
2,090 24/7 Media, Inc.*........................................ 32,656
5,900 VerticalNet, Inc.*....................................... 217,931
31,090 Yahoo!, Inc.*............................................ 3,851,274
-----------
9,485,814
-----------
ENABLERS: 32.8%
15,120 Ariba, Inc.*............................................. 1,482,469
16,810 Broadcom Corp.*.......................................... 3,680,339
67,880 Cisco Systems, Inc.*..................................... 4,314,623
5,820 IXL Enterprises, Inc.*................................... 84,390
24,730 Juniper Networks*........................................ 3,599,761
4,170 net2phone inc*........................................... 148,817
6,330 Verio, Inc.*............................................. 351,216
-----------
13,661,615
-----------
</TABLE>

40
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

41
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED) -- (CONTINUED)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
SHARES
VALUE
-------------------------------------------------------------------------------
<C> <S> <C>
SOFTWARE: 25.7%
2,170 Allaire Corp.*........................................... $ 79,748
77,250 America Online, Inc.*.................................... 4,074,937
30,400 At Home Corp.*........................................... 630,800
18,190 Broadvision, Inc.*....................................... 924,279
9,500 EarthLink, Inc.*......................................... 146,662
29,000 Exodus Communications, Inc.*............................. 1,335,812
14,450 Healtheon Corp.*......................................... 214,041
1,970 Intraware, Inc.*......................................... 31,643
8,680 Lycos, Inc.*............................................. 468,720
12,710 Portal Software, Inc.*................................... 811,851
12,540 Psinet, Inc.*............................................ 315,068
3,170 RSA Security, Inc.*...................................... 219,523
5,660 Scient Corp.*............................................ 249,748
15,110 Vignette Corp.*.......................................... 785,956
-----------
10,288,788
-----------
TOTAL COMMON STOCKS
(cost $36,096,927)..................................... 41,686,448
-----------
TOTAL INVESTMENTS IN SECURITIES
(cost $36,096,927+): 100.2%............................ 41,686,448
Liabilities in excess of Other Assets: (0.2)%............ (73,533)
-----------
NET ASSETS: 100.0%....................................... $41,612,915
===========
</TABLE>

<TABLE>
<C><S> <C>
* Non-income producing security.
+ At June 30, 2000, the basis of investments for federal
income tax purposes was the same as their cost for
financial reporting purposes.
Unrealized appreciation and depreciation were
as follows:
Gross unrealized appreciation................ $13,031,025
Gross unrealized depreciation................ (7,441,504)
-----------
Net unrealized appreciation.................. $ 5,589,521
===========
</TABLE>

See accompanying Notes to Financial Statements.

42
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND

STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, at value (cost $36,096,927)...... $41,686,448
Receivables:
Securities sold......................................... 154,295
Fund shares sold........................................ 18,107
Interest................................................ 439
-----------
Total assets............................................ 41,859,289
-----------

LIABILITIES
Cash overdraft 174,518
Payables:
Fund shares redeemed.................................... 40,767
Due to advisor (Note 3)................................. 22,888
Accrued expenses............................................ 8,201
-----------
Total liabilities....................................... 246,374
-----------
NET ASSETS.................................................. $41,612,915
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($41,612,915/2,120,148 shares outstanding; unlimited
number of shares authorized without par value).......... $19.63
------
-------
COMPONENTS OF NET ASSETS
Paid-in capital......................................... $38,719,940
Accumulated net investment loss......................... (315,750)
Accumulated net realized loss on investments............ (2,380,796)
Net unrealized appreciation on investments.............. 5,589,521
-----------
NET ASSETS.................................................. $41,612,915
===========
</TABLE>

See accompanying Notes to Financial Statements.

43
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND

STATEMENT OF OPERATIONS (UNAUDITED)

EXPENSES
Advisory fees (Note 3)...................................... 214,939
Transfer agent fees......................................... 47,778
Custody fees................................................ 27,789
Fund accounting fees........................................ 18,204
Administration fees (Note 3)................................ 11,777
Audit fees.................................................. 10,808
Registration expense........................................ 10,550
Reports to shareholders..................................... 4,193
Legal fees.................................................. 2,883
Trustee fees................................................ 2,271
Miscellaneous............................................... 1,971
Insurance expense........................................... 731
-----------
Total expenses.......................................... 353,894
Less: Fees waived (Note 3).............................. (31,186)
-----------
Net expenses............................................ 322,708
-----------
NET INVESTMENT LOSS................................. (315,750)
-----------

REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss on investments............................ (2,757,467)
Net unrealized depreciation on investments.................. (5,864,276)
-----------
Net realized and unrealized loss on investments......... (8,621,743)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $(8,937,493)
===========
</TABLE>

See accompanying Notes to Financial Statements.

44
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND

STATEMENT OF CHANGES IN NET ASSETS

OPERATIONS
Net investment loss......................... $ (315,750) $ (80,252)
Net realized gain (loss) on investments..... (2,757,467) 376,671
Net unrealized appreciation (depreciation)
on investments............................ (5,864,276) 11,453,797
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. (8,937,493) 11,750,216
----------- -----------

CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net
change in outstanding shares (a).......... 7,634,662 30,165,530
----------- -----------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ (1,302,831) 41,915,746

NET ASSETS
Beginning of period......................... 42,915,746 1,000,000
----------- -----------
END OF PERIOD............................... $41,612,915 $42,915,746
=========== ===========
</TABLE>

<TABLE>
<C><S> <C>
(a) A summary of capital share transactions is as follows:
</TABLE>

<TABLE>
<CAPTION>
SIX MONTHS JULY 31, 1999*
ENDED THROUGH
JUNE 30, 2000# DECEMBER 31, 1999
---------------------------------------------------------------------------------
------------------------ ------------------------
SHARES VALUE SHARES VALUE
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold................. 1,133,441 $ 26,619,472 2,168,975 $36,248,408
Shares redeemed............. (898,967) (18,984,810) (363,301) (6,082,878)
--------- ------------ --------- -----------
NET INCREASE................ 234,474 $ 7,634,662 1,805,674 $30,165,530
========= ============ ========= ===========
</TABLE>

<TABLE>
<C><S> <C>
# Unaudited.
* Commencement of operations.
</TABLE>

See accompanying Notes to Financial Statements.

45
<PAGE>
GUINNESS FLIGHT INTERNET.COM INDEX-TM- FUND

FINANCIAL HIGHLIGHTS

FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
SIX MONTHS JULY 31, 1999*
ENDED THROUGH
JUNE 30, 2000# DECEMBER 31, 1999
----------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period........ $ 22.76 $ 12.50
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss....................... (0.15) (0.04)
Net realized and unrealized gain (loss) on
investments............................. (2.98) 10.30
------- -------
Total from investment operations............ (3.13) 10.26
------- -------
Net asset value, end of period.............. $ 19.63 $ 22.76
======= =======

Total return................................ (13.75)%++ 82.08 %++

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions)........ $ 41.6 $ 42.9
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses
absorbed................................ 1.48 %+ 2.38 %+
After fees waived and expenses absorbed... 1.35 %+ 1.34 %+
RATIO OF NET INVESTMENT LOSS TO AVERAGE NET
ASSETS:
Before fees waived and expenses
absorbed................................ (1.45)%+ (2.23)%+
After fees waived and expenses absorbed... (1.32)%+ (1.19)%+

Portfolio turnover rate..................... 30.14 %++ 13.30 %++
</TABLE>

<TABLE>
<S> <C>
# Unaudited
* Commencement of operations.
+ Annualized.
++ Not Annualized.
</TABLE>

See accompanying Notes to Financial Statements.

46
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND

BACKDROP

In the early months of 2000, the Chinese markets first drifted, then rallied
sharply in March. The recovery was led by the new economy technology and telecom
sectors and due to the potentially high market growth in China for technology as
well as the strong Nasdaq performance. The other sectors of the stock market
continued to be weak as there were political concerns, including the tension
with Taiwan and the delayed agreement on World Trade Organization (WTO) terms
with the European Union. Legend Holdings, China Mobile and CITIC Pacific, our
top holdings, surged 157%, 40% and 61% respectively over the first quarter.

China shares were volatile in the second quarter. The Red Chip new economy
and telecom stocks fell with the Nasdaq and reversed the first quarter's strong
performance. However, the successful conclusion of a WTO agreement between China
and the European Union as well as the passing of Permanent Normal Trade
Relations for China in the U.S. resulted in better performance by Red Chip
shares during June. The H shares, including the petrochemical, infrastructure
and energy stocks, which started the year badly, rebounded over the quarter as
they are less correlated with U.S. interest rates.

China's export growth has accelerated (39% in 1Q99 compared with 17% in
4Q99) in response to an increase in Asian demand and robust U.S. demand,
particularly for China's light industrial products such as textiles, garments
and consumer electronics. With China's impending accession into the WTO, export
growth should improve further. China has also showed more convincing signs of a
turnaround in domestic consumption during the first two months of this year.
Nominal retail sales increased 10.9% compared with 7.9% in 4Q99, and consumer
inflation increased by 0.25% compared to a 0.8% drop in 4Q99. Industrial
production has also been surprisingly strong, rising 11% in real value-added
terms in 1Q00 compared with 7% in 4Q99. Meanwhile, contracted foreign direct
investment into China also rose markedly by 27% in 1Q00 compared with 2% in
4Q99.

THE FUND

The fund underperformed the MSCI China Free Index benchmark due to the
fund's heavy concentration in technology and telecom stocks. However, the
performance of the fund relative to the benchmark has been disrupted by major
changes in the composition and weightings of the MSCI China Free Index. From the
end of May, Red Chips were included in this index, and this grouping now
represents the majority of the benchmark, reducing the weightings in H and B
shares. China Mobile alone is around 60% of the index. Although China Mobile has
declined 14% from the end of March to the end of May, it rebounded 18% in June
led by stronger than expected subscriber growth.

47
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND (CONTINUED)

We have increased the weighting in technology and telecom companies,
including multi-industry companies that have significant technology exposure.
Our optimism in these sectors is built on the expectation that personal home
computers, Internet access infrastructure and wireless communication products
have very low penetration rates in China and the impending accession of China to
the WTO will further accelerate the development of the telecom and technology
markets. We have trimmed the commodity and heavy industry companies (generally H
shares) that lack any technology angle. The upcoming listing of large H share
companies including Petrochina, Sinopec and CNOOC has also caused concern about
too many large new issues in this sector relative to investor demand. We have
decreased auto manufacturers and pharmaceutical stocks within the consumer
sector because entry into the WTO is expected to dramatically increase
competition.

The weighting in the telecom sector was increased when we added new listing
China Unicom, Mainland China's second largest mobile phone operator, to the
portfolio. China has one of the fastest growing wireless telecom markets in the
world. The weighting in the transport sector was increased as we have seen an
improvement in passenger load factor and transport volume for the airlines and
shipping companies. To minimize exposure to the pure Internet stocks due to the
uncertainty about earnings, we sold positions in Founder, DVB Holdings and
Softbank Investment International. We also have an underweight position in the
energy sector as we prefer sectors that are sensitive to the economic
acceleration in China. On the other hand, we remain optimistic on the hardware
companies like Legend due to low penetration of personal computers in China.

OUTLOOK

China's economic activity is accelerating as export growth, consumer demand,
industrial production and foreign direct investment have all increased at rates
that are stronger than expected by the market. The fund has shifted away from
the commodity and heavy industry companies into telecom, technology and
WTO-related stocks.

We believe that investing in China needs to be long term as the stock market
is dominated by retail investors, is rumor driven and therefore is very
volatile. A long-term investment strategy should be based on both top down and
bottom up analysis. Although the market may still be concerned about outstanding
WTO issues and politics in the shorter term, we are optimistic about the
prospects for investments in China as the economic backdrop steadily improves.

GDP growth in China is likely to accelerate in 2H00 after a sharp rebound to
8.1% in 1Q00. Economists have revised their forecasts to between 7.5%-8.5% for
the full year. Underpinning this strong growth has been a pickup in industrial
production (11.5% in April

48
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND (CONTINUED)

and May 2000 compared with 10.7% in 1Q00 and 7.3% in 4Q99), led by technical
improvements, reflecting the upgrade of information technology products. The
other major contributor to China's economic growth has been strong exports,
which rose 34% in April and May 2000 (compared with 39.2% in 1Q00 and 16.7% in
4Q99). Although the growth in exports is likely to slow in 2H00 due to the
higher base, we still expect exports to post more than 20% growth for the full
year. The domestic economy continues to improve as consumer retail sales
increased by 11.5% in May, the best performance since January 1998. As export
growth normalizes, domestic demand should gradually replace exports as the
driving force of the economy in 2H00.

Our portfolio has a high weighting in the transport sector as improved
demand is being fed into operating statistics and earnings growth. Although the
petrochemical stocks have benefited from the higher than expected crude oil
price in the first half of the year, the price of crude oil is likely to peak
after both OPEC and Saudi Arabia announced higher production levels. Moreover,
the upcoming listing of CNOOC and SINOPEC, two of China's largest petrochemical
groups, also raises concerns about the oversupply of paper in the petrochemical
sector.

With global appetite for telecom and technology stocks and China having one
of the fastest growing telecom and technology markets in the world, we believe
that these stocks will lead the market until further progress is made on the WTO
issue and whether or not U.S. interest rates have now peaked. China Mobile has
announced much stronger than expected cellular subscriber growth for the first
five months of the year, which resulted in most analysts upgrading their
earnings forecasts. We believe that the telecom and technology stocks are the
best choice for a consumption recovery in China, as demand for information
technology products should accelerate.

-- Adrian Fu
Hong Kong

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.

49
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND
--------------------------------------------------------------------------------
FUND HIGHLIGHTS
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
# of Holdings in Portfolio: 28
Portfolio Turnover: 61.7%
% of Stocks in Top 10: 66.9%
</TABLE>

FUND MANAGERS:
Robert Conlon; Adrian Fu

<TABLE>
<CAPTION>
TOP 10 HOLDINGS (% OF NET ASSETS)
<S> <C>
-------------------------------------
China Mobile (Hong Kong) Ltd. 17.4%
Citic Pacific Ltd. 9.8%
Legend Holdings Ltd. 8.4%
Cosco Pacific Ltd. 6.3%
China Southern Air 4.8%
China Merchants Hai Hong
Holdings 4.5%
TCL International Holdings Ltd. 4.3%
China Shipping Development
Co., Ltd. 3.9%
Hutchison Whampoa 3.8%
China Unicom Ltd. 3.7%
<CAPTION>
TOP 5 SECTORS (% OF NET ASSETS)
-------------------------------------
<S> <C>
Conglomerates & Diversified
Operations 19.1%
Telephone Communications 17.4%
Transportation 13.0%
Computers 8.3%
Electronics 5.3%
<CAPTION>
TOP SHARE TYPES (% OF NET ASSETS)
-------------------------------------
<S> <C>
Red Chips 59.1%
H Shares 33.9%
China Plays 3.9%
Shanghai B Shares 2.3%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE GUINNESS FLIGHT
MAINLAND CHINA FUND AND THE M.S.C.I. CHINA FREE INDEX

<TABLE>
<CAPTION>
GUINNESS FLIGHT MAINLAND M.S.C.I. CHINA
CHINA FUND FREE INDEX
<S> <C> <C>
11/3/1997* $10,000 $10,000
12/31/97 $9,450 $7,947
3/31/98 $10,267 $7,806
6/30/98 $7,230 $5,055
9/30/98 $6,728 $4,289
12/31/98 $7,091 $4,464
3/31/99 $6,198 $3,926
6/30/99 $9,524 $7,096
9/30/99 $8,932 $5,899
12/31/99 $9,373 $4,907
3/31/00 $9,823 $3,908
6/30/00 $9,063 $4,850
</TABLE>

<TABLE>
<CAPTION>
*INCEPTION DATE.
AVERAGE ANNUAL TOTAL RETURN
<S> <C>
One Year Since Inception
-4.85% -3.63%
</TABLE>

50
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
SHARES
COMMON STOCKS: 99.1%
VALUE
-------------------------------------------------------------------------------
<C> <S> <C>
AIRLINES: 4.8%
2,346,000 China Southern Air.................................... $ 559,764
-----------
AUTOMOTIVE MANUFACTURER: 2.1%
13,900 Brilliance China Automotive - N....................... 243,250
-----------
CHEMICALS: 2.8%
1,640,000 Yizheng Chemical Fibre Co............................. 326,092
-----------
COMMUNICATION EQUIPMENT: 3.1%
305,000 Eastern Communications Co., Ltd....................... 267,180
268,000 Nanjing Panda Electronics Co., Ltd.*.................. 96,263
-----------
363,443
-----------
COMMUNICATION SERVICES: 3.7%
206,000 China Unicom Ltd.*.................................... 437,350
-----------
COMPUTER EQUIPMENT: 1.0%
176,000 Great Wall Tech....................................... 121,919
-----------
COMPUTERS: 8.3%
1,012,000 Legend Holdings Ltd................................... 980,148
-----------
CONGLOMERATES & DIVERSIFIED OPERATIONS: 19.1%
766,000 China Merchants Hai Hong Holdings..................... 525,710
220,000 Citic Pacific Ltd..................................... 1,151,456
35,200 Hutchison Whampoa..................................... 442,520
71,000 Shanghai Industrial Holdings Ltd...................... 128,423
-----------
2,248,109
-----------
CONSUMER RELATED: 3.4%
132,000 Beijing Enterprises................................... 155,785
858,000 Glorious Sun Enterprises Ltd.......................... 239,393
-----------
395,178
-----------
</TABLE>

51
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED) -- (CONTINUED)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
SHARES
VALUE
-------------------------------------------------------------------------------
<C> <S> <C>
ELECTRONICS: 5.3%
214,000 Guangdong Kelon Electric Holdings - H................. $ 115,986
1,374,000 TCL International Holdings Ltd.*...................... 502,338
-----------
618,324
-----------
FINANCE: 2.6%
392,000 China Everbright...................................... 306,747
-----------
PETROCHEMICALS : 1.4%
1,224,000 Shanghai Petrochemical................................ 166,438
-----------
PHARMACEUTICALS: 0.1%
296,000 China Pharmaceuticals Wts............................. 6,075
-----------
REAL ESTATE: 1.9%
20,000 Cheung Kong (Holdings) Ltd............................ 221,286
-----------
RETAIL: 1.1%
110,000 Global Tech (Holdings) Ltd............................ 126,999
-----------
SOFTWARE: 4.4%
3,706 AsiaInfo Holdings, Inc.*.............................. 146,155
186,000 Pacific Century CyberWorks Ltd........................ 367,450
-----------
513,605
-----------
TELEPHONE COMMUNICATIONS: 17.4%
232,000 China Mobile (Hong Kong) Ltd.*........................ 2,046,092
-----------
TRANSPORTATION: 13.0%
1,746,000 China National Aviation............................... 318,051
2,530,000 China Shipping Development Co., Ltd.*................. 460,864
943,000 Cosco Pacific Ltd..................................... 743,963
-----------
1,522,878
-----------
</TABLE>

52
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

<TABLE>
<C><S> <C>
* Non-income producing security.
+ At June 30, 2000, the basis of investments for
federal income tax purposes was the same as their
cost for financial reporting purposes.
Unrealized appreciation and depreciation were as
follows:
Gross unrealized appreciation..................... $ 2,412,810
Gross unrealized depreciation..................... (936,402)
-----------
Net unrealized appreciation....................... $ 1,476,408
===========
</TABLE>

See accompanying Notes to Financial Statements.

53
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND

STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, at value (cost $10,147,540)...... $11,623,948
Cash........................................................ 89,273
Receivables:
Dividends and interest.................................. 15,643
Due from advisor (Note 3)............................... 111
Prepaid expenses............................................ 9,452
Deferred organization costs................................. 11,313
-----------
Total assets............................................ 11,749,740
-----------

LIABILITIES
Payable:
Unrealized loss on forward foreign currency contracts... 1
Accrued expenses............................................ 22,026
-----------
Total liabilities....................................... 22,027
-----------
NET ASSETS.................................................. $11,727,713
===========

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($11,727,713/1,057,480 shares outstanding; unlimited
number of shares authorized without par value).......... $11.09
------
-------
COMPONENTS OF NET ASSETS
Paid-in capital......................................... $14,440,263
Accumulated net investment loss......................... (21,891)
Accumulated net realized loss on investments and foreign
currency.............................................. (4,167,061)
Net unrealized appreciation (depreciation) on:
Investments......................................... 1,476,408
Foreign Currency.................................... (6)
-----------
NET ASSETS.................................................. $11,727,713
===========
</TABLE>

See accompanying Notes to Financial Statements.

54
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND

STATEMENT OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, 2000
----------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
INCOME
Dividends................................................... $ 91,012
Interest.................................................... 4,327
---------
Total income............................................ 95,339
---------

EXPENSES
Advisory fees (Note 3)...................................... 60,395
Transfer agent fees......................................... 34,276
Fund accounting fees........................................ 19,715
Custody fees................................................ 16,893
Administration fees (Note 3)................................ 15,099
Audit fees.................................................. 10,935
Registration expense........................................ 8,529
Reports to shareholders..................................... 6,247
Amortization of deferred organization costs................. 2,394
Trustee fees................................................ 2,105
Legal fees.................................................. 1,709
Miscellaneous............................................... 1,084
Insurance expense........................................... 513
---------
Total expenses.......................................... 179,894
Less: Fees waived and expenses absorbed (Note 3)........ (60,424)
---------
Net expenses............................................ 119,470
---------
NET INVESTMENT LOSS................................. (24,131)
---------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY
Net realized loss on investments............................ (595,517)
Net realized gain on foreign currency....................... 130
Net unrealized appreciation (depreciation) on:
Investments............................................. 141,790
Foreign currency........................................ (5)
---------
Net realized and unrealized loss on investments and
foreign currency...................................... (453,602)
---------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $(477,733)
=========
</TABLE>

See accompanying Notes to Financial Statements.

55
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED ENDED
JUNE 30, 2000# DECEMBER 31, 1999
----------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:

OPERATIONS
Net investment income (loss)................ $ (24,131) $ 93,837
Net realized loss on investments............ (595,517) (1,053,620)
Net realized gain (loss) on foreign
currency.................................. 130 (962)
Net unrealized appreciation (depreciation) on:
Investments............................. 141,790 3,704,964
Foreign currency........................ (5) 20
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. (477,733) 2,744,239
----------- -----------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income.................. -- (93,100)
----------- -----------

CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from net
change in outstanding shares (a).......... (646,205) (152,607)
----------- -----------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ (1,123,938) 2,498,532

NET ASSETS
Beginning of period......................... 12,851,651 10,353,119
----------- -----------
END OF PERIOD (including accumulated net
investment income (loss) of ($21,891) and
$2,240, respectively)..................... $11,727,713 $12,851,651
=========== ===========
</TABLE>

(a) A summary of capital share transactions is as follows:

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
JUNE 30, 2000# ENDED
------------------------------------------------------ DECEMBER 31, 1999
----------------------- ------------------------
SHARES VALUE SHARES
------------------------------------------------------ VALUE
<S> <C> <C> <C> <C>
Shares sold.................. 249,667 $ 2,855,755 888,050 $ 9,273,394
Shares issued in reinvestment
of distributions........... -- -- 7,445 85,368
Shares redeemed.............. (312,243) (3,501,960) (959,562) (9,511,369)
-------- ----------- ---------- -----------
NET DECREASE................. (62,576) $ (646,205) (64,067) $ (152,607)
======== =========== ========== ===========
</TABLE>

# Unaudited.

See accompanying Notes to Financial Statements.

56
<PAGE>
GUINNESS FLIGHT MAINLAND CHINA FUND

FINANCIAL HIGHLIGHTS

FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
NOVEMBER 3,
SIX MONTHS YEAR ENDED 1997*
ENDED DECEMBER 31, THROUGH
JUNE 30, ------------------- DECEMBER 31,
2000# 1999 1998 1997
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.... $11.47 $ 8.74 $ 11.79 $12.50
------ ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).......... (0.02) 0.09 0.11 0.02
Net realized and unrealized gain
(loss) on investments and foreign
currency............................ (0.36) 2.72 (3.05) (0.71)
------ ------ ------- ------
Total from investment operations........ (0.38) 2.81 (2.94) (0.69)
------ ------ ------- ------
LESS DISTRIBUTIONS:
From net investment income............ -- (0.08) (0.11) (0.02)
------ ------ ------- ------
Net asset value, end of period.......... $11.09 $11.47 $ 8.74 $11.79
====== ====== ======= ======

Total return............................ (3.31)%++ 32.20 % (24.96)% (5.50)%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions).... $ 11.7 $ 12.9 $ 10.4 $ 16.4
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived, expenses absorbed
or recouped......................... 2.98 %+ 3.33 % 3.13 % 2.69 %+
After fees waived, expenses absorbed
or recouped......................... 1.98 %+ 1.98 % 1.98 % 1.98 %+
RATIO OF NET INVESTMENT INCOME (LOSS) TO
AVERAGE NET ASSETS:
Before fees waived, expenses absorbed
or recouped......................... (1.40)%+ (0.53)% (0.05)% 1.17 %+
After fees waived, expenses absorbed
or recouped......................... (0.40)%+ 0.82 % 1.10 % 1.88 %+

Portfolio turnover rate................. 61.66 %++ 99.39 % 82.00 % --++

BANK LOANS
Amount outstanding at end of period
(millions)............................ n/a $ --^ $ 0.12 n/a
Average amount of bank loans oustanding
during the period (monthly average)
(millions)............................ n/a $ 0.02^ $ 0.01 n/a
Average number of shares outstanding
during the period (monthly average)
(millions)............................ n/a 1.16^ 1.40 n/a
Average amount of debt per share during
the period............................ n/a $ 0.01^ $ 0.01 n/a
</TABLE>

<TABLE>
<S> <C>
# Unaudited
* Commencement of operations.
+ Annualized.
++ Not annualized.
^ The Fund's line of credit expired June 15, 1999.
</TABLE>

See accompanying Notes to Financial Statements.

57
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND

BACKDROP

At the beginning of the year, economic reports showed that core inflation
was at its lowest point in 34 years, and the market turned negative as investors
became increasingly concerned over the U.S. interest rate outlook. January began
a sector rotation out of some technology stocks and into financial stocks which
continued into the second quarter. While the Wired Index-TM- was relatively
resilient during this rotation, it did not entirely escape the sell-off as the
market weakened.

Despite a company reporting season showing overall strong earnings,
including those of various technology-related companies, the interest rate
concerns sent the Index and the market tumbling, with volatility being the order
of the day. Beginning in February, the Federal Open Market Committee increased
interest rates by 25 basis points during each of its meetings, until finally
ending with the 50 basis point increase in May. This increase represented the
Fed's biggest move in five years yet was largely expected by the market.

The Wired Index-TM- rallied strongly in the beginning of June as the release
of economic data indicated a slowing in the U.S. economy. Additionally, as
Microsoft appealed the judgment to separate into two companies, the technology
sector rallied, with Microsoft having its biggest daily gain in six months and
sending the Wired Index-TM- through the 1000 level, last seen in early April.

Some key mergers and acquisitions highlighted the first six months of this
year -- America Online with Time Warner, Smithkline Beecham with Glaxo Wellcome,
and Charles Schwab with U.S. Trust. DaimlerChrysler also announced in March that
it would buy a controlling minority stake in Mitsubishi Motor for US$2.1
billion.

In other company news, Intel announced that it would double capital spending
this year to meet expanding demand for flash memory and microprocessors for
mobile telephones. According to market analysts, the semiconductor industry is
growing at 20 to 25 percent, well ahead of the historical growth rate of 13 to
14 percent, and Intel is well positioned to benefit from this growth. In an
effort to eventually marry security solutions more closely with the company's
chip architecture, Intel may also begin giving away advanced security software
containing industry-standard security functions for encrypting and managing
digital certificates.

EMC unveiled its latest generation of storage systems and software to keep
it comfortably ahead of competitors and sustain its highly envied gross margins.
Despite all the negative news surrounding the anti-trust trial, Microsoft
announced its so-called Next Generation Window Services (NGWS). The new strategy
is to be known as dot-net and is Microsoft's plan to make the Internet more user
friendly.

58
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND (CONTINUED)

Enron is targeting Japan, the world's second largest economy, not just
through its initial interest in the electricity sector but for wider trading
opportunities through its fast-growing Web-based marketplace. The energy giant
has been approaching Japanese companies about using its Internet trading
platform, EnronOnline.

THE FUND

There were several changes to the index constituents during this six-month
period. In the first quarter, Sabre Holdings, the online travel bookings and
solutions company spun out from AMR Holdings, replaced its former parent in the
index. During the second quarter, there were seven changes. Added were Aventis,
BroadVision, Flextronics, i2 Technologies, JDS Uniphase, Oracle and Vodafone
AirTouch, while Acxiom, Cable & Wireless, Dell Computer, Monsanto, PeopleSoft,
Thermo Electron and Wind River Systems were removed from the index.

These changes occurred as a result of trigger events. A trigger event occurs
when an index constituent is involved in significant corporate activity, like a
merger. Once a trigger event occurs, the entire list of constituents is subject
to review by the Wired Index Steering Committee. A number of trigger events led
to a full review, the most notable being the America Online and Time Warner
merger. Additionally, Monsanto merged with Pharmacia & Upjohn, while Smithkline
Beecham announced that it would merge with Glaxo Wellcome.

We invested all cashflows in the 40 constituent stocks at the weights
represented by the Wired Index-TM- and employed the full replication method. As
a result, all 40 stocks were bought in the respective index weightings.

59
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND (CONTINUED)

OUTLOOK

The outlook for both the New Economy and the Wired Index-TM- is
overwhelmingly positive. In the near term, the U.S. Senate's passage of the
permanent normal trade relations (PNTR) bill with China could give access to a
potentially huge market to the likes of FedEx, Cisco, Nokia, Lucent, Applied
Materials and many other index companies.

Additionally, as the first draft of the mapping of the human genome
completed in June by the publicly funded Human Genome Project and the privately
funded Celera Genomics, index companies like Affymetrix and Incyte Genomics are
expected to benefit from the increased demand for the analysis of genetic
information. The New Economy of innovation, globalism and strategic vision is
well underway.

-- Doug Blatch
Cape Town

Wired-Registered Trademark- is a registered trademark, and Wired Index-TM- a
service mark, of Advance Magazine Publishers Inc., and are used with permission
of Advance Magazine Publishers, Inc. Advance Magazine Publishers, Inc. makes no
warranty, express or implied, including no warranties of merchantability or
fitness for a particular purpose or otherwise, to any person or entity as to the
results to be obtained from or any data included in, or any other matters
concerning, the Wired Index-TM- or the trademarks.

60
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND
--------------------------------------------------------------------------------
FUND HIGHLIGHTS
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
# of Holdings in Portfolio: 40
Portfolio Turnover: 21.0%
% of Stocks in Top 10: 44.3%
</TABLE>

FUND MANAGER:
Doug Blatch

<TABLE>
<CAPTION>
TOP 10 HOLDINGS (% OF NET ASSETS)
<S> <C>
-------------------------------------
Intel Corp. 5.3%
Enron Corp. 4.9%
Applied Materials, Inc. 4.7%
Emc Corp./Mass 4.6%
Schlumberger Ltd. 4.3%
Walt Disney Co. 4.3%
Charles Schwab & Co., Inc. 4.3%
Aventis S. A. 4.2%
Cisco Systems, Inc. 3.9%
Sun Microsystems, Inc. 3.8%
<CAPTION>
TOP 5 SECTORS (% OF NET ASSETS)
-------------------------------------
<S> <C>
Telecommunications 9.1%
Software 9.1%
Financial Services 6.5%
Wireless Communication
Equipment 6.3%
Media 5.6%
<CAPTION>
TOP 5 COUNTRIES (% OF NET ASSETS)
-------------------------------------
<S> <C>
United States 82.5%
United Kingdom 8.7%
France 4.2%
Finland 3.4%
Australia 3.0%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
GUINNESS FLIGHT WIRED INDEX-TM- FUND AND WIRED INDEX-TM-

<TABLE>
<CAPTION>
GUINNESS FLIGHT WIRED WIRED
INDEX -TM- FUND INDEX-TM-
<S> <C> <C>
12/15/98* $10,000 $10,000
12/31/98 $11,160 $11,411
3/31/99 $13,408 $13,790
6/30/99 $14,016 $14,475
9/30/99 $13,440 $13,908
12/31/99 $18,824 $19,549
3/31/00 $21,367 $22,262
6/30/00 $20,089 $20,931
*Inception date.
</TABLE>

AVERAGE ANNUAL TOTAL RETURN
ONE YEAR SINCE INCEPTION
<S> <C>
43.34% 57.19%
</TABLE>

Past performance is not indicative of future performance. Share value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original investment. The index referenced in this chart is not
available for investment and does not incur expenses. The returns shown above
were achieved during a period of generally rising market values, especially in
the technology sector.

61
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
SHARES
COMMON STOCKS: 105.4%
VALUE
----------------------------------------------------------------------------------
<C> <S> <C>
AUTOMOBILE: 2.1%
79,875 DaimlerChrysler AG................................ $ 4,158,492
------------
BANKING: 1.8%
33,537 State Street Corp................................. 3,557,018
------------
BIOLOGICAL RESEARCH: 4.9%
5,574 Affymetrix, Inc.*................................. 920,407
112,900 Aventis S. A...................................... 8,192,306
5,800 INCYTE Pharmaceuticals, Inc.*..................... 476,687
------------
9,589,400
------------
COMPUTER COMMUNICATION EQUIPMENT: 3.9%
118,700 Cisco Systems, Inc.*.............................. 7,544,869
------------
COMPUTER STORAGE DEVICES: 4.6%
116,316 Emc Corp./Mass*................................... 8,949,062
------------
COMPUTERS: 3.8%
82,020 Sun Microsystems, Inc.*........................... 7,458,694
------------
CONSUMER ELECTRONICS: 2.2%
44,668 Sony Corp......................................... 4,212,751
------------
ELECTRICAL MANUFACTURER: 1.5%
41,600 Flextronics International Ltd.*................... 2,857,400
------------
ENERGY/PETROLEUM: 4.9%
143,170 Enron Corp........................................ 9,485,012
------------
ENTERTAINMENT: 4.3%
216,485 Walt Disney Co.................................... 8,402,324
------------
FINANCIAL SERVICES: 6.5%
247,703 Charles Schwab & Co., Inc......................... 8,329,013
87,982 First Data Corp................................... 4,366,107
------------
12,695,120
------------
</TABLE>

62
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED) -- (CONTINUED)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
SHARES
VALUE
----------------------------------------------------------------------------------
<C> <S> <C>
HOTEL MANAGEMENT: 0.9%
50,783 Marriott International -- Class A................. $ 1,831,362
------------
INDUSTRY MACHINERY: 4.7%
100,092 Applied Materials, Inc.*.......................... 9,070,838
------------
INSURANCE: 3.5%
58,557 American International Group...................... 6,880,447
------------
INTERNET/NEW MEDIA: 4.1%
84,154 America Online, Inc.*............................. 4,439,124
29,208 Yahoo!, Inc.*..................................... 3,618,141
------------
8,057,265
------------
MEDIA: 5.6%
106,802 News Corp. Cayman ADR............................. 5,820,709
49,951 Reuters Group Plc -- Sponsored ADR................ 4,991,978
------------
Total Media....................................... 10,812,687
------------
OIL & GAS SERVICES: 4.3%
112,596 Schlumberger Ltd.................................. 8,402,477
------------
PHARMACEUTICALS: 3.3%
97,958 Smithkline Beecham Plc............................ 6,385,637
------------
RETAIL: 2.7%
90,820 Wal-Mart Stores, Inc.............................. 5,233,503
------------
SATELLITE TELECOMMUNICATIONS: 0.1%
16,822 Globalstar Telecommunication*..................... 151,398
------------
SEMICONDUCTORS: 5.3%
77,190 Intel Corp........................................ 10,319,338
------------
</TABLE>

63
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

AT JUNE 30, 2000 (UNAUDITED) -- (CONTINUED)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
SHARES
VALUE
----------------------------------------------------------------------------------
<C> <S> <C>
SOFTWARE: 9.1%
52,100 BroadVision, Inc.*................................ $ 2,647,331
33,200 i2 Technologies, Inc.............................. 3,461,618
54,234 Microsoft Corp.*.................................. 4,338,720
79,300 Oracle Corp.*..................................... 6,666,156
55,055 Parametric Technology Corp.*...................... 605,605
------------
17,719,430
------------
SPECIALTY STEEL: 0.3%
17,871 Nucor Corp........................................ 593,094
------------
TELECOMMUNICATIONS: 9.1%
84,770 Lucent Technologies............................... 5,022,623
147,318 Qwest Communications*............................. 7,319,863
118,776 WorldCom, Inc.*................................... 5,448,849
------------
17,791,335
------------
TELECOMMUNICATION EQUIPMENT: 3.8%
61,100 JDS Uniphase Corp................................. 7,324,362
------------
TRANSPORTATION: 1.8%
62,754 FDX Corp.*........................................ 2,384,652
38,570 Sabre Holdings Corp............................... 1,099,245
------------
3,483,897
------------
</TABLE>

64
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND

SCHEDULE OF INVESTMENTS BY INDUSTRY

<TABLE>
<C> <S> <C>
* Non-income producing security.
+ At June 30, 2000, the basis of investments for federal income tax
purposes was the same as their cost for financial reporting purposes.
Unrealized appreciation and depreciation were as follows:
Gross unrealized appreciation........................ $ 57,146,303
Gross unrealized depreciation........................ (6,715,499)
------------
Net unrealized appreciation.......................... $ 50,430,804
============
ADR - American depositary receipt
</TABLE>

See accompanying Notes to Financial Statements.

65
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND

STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, at value (cost $154,807,416)..... $205,238,220
Cash........................................................ 434,386
Receivables:
Fund shares sold........................................ 292,620
Dividends and interest.................................. 79,478
Prepaid expenses............................................ 65,053
------------
Total assets............................................ 206,109,757
------------

LIABILITIES
Payables:
Distributions to shareholders........................... 11,254,847
Due to advisor (Note 3)................................. 142,419
Accrued expenses............................................ 20,339
------------
Total liabilities....................................... 11,417,605
------------
NET ASSETS.................................................. $194,692,152
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($194,692,152/8,199,526 shares outstanding; unlimited
number of shares authorized without par value).......... $23.74
------
------
COMPONENTS OF NET ASSETS
Paid-in capital......................................... $144,380,945
Accumulated net investment loss......................... (596,913)
Accumulated net realized gain on investments............ 477,316
Net unrealized appreciation on investments.............. 50,430,804
------------
NET ASSETS.................................................. $194,692,152
============
</TABLE>

See accompanying Notes to Financial Statements.

66
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND

STATEMENT OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, 2000
----------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
INCOME
Dividends (net of foreign tax withheld of $68,681).......... $ 478,374
Interest.................................................... 24,147
-----------
Total income............................................ 502,521
-----------

EXPENSES
Advisory fees (Note 3)...................................... 785,314
Transfer agent fees......................................... 84,163
Custody fees................................................ 49,005
Administration fees (Note 3)................................ 47,330
Fund accounting fees........................................ 26,311
Reports to shareholders..................................... 18,621
Legal fees.................................................. 16,040
Audit fees.................................................. 14,527
Registration expense........................................ 13,899
Trustee fees................................................ 5,520
Insurance expense........................................... 5,034
Miscellaneous............................................... 4,680
-----------
Total expenses.......................................... 1,070,444
Add: Expenses recouped by advisor (Note 3).............. 28,990
-----------
Net expenses............................................ 1,099,434
-----------
NET INVESTMENT LOSS................................. (596,913)
-----------

REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments............................ 1,000,335
Net unrealized appreciation on investments.................. 11,207,928
-----------
Net realized and unrealized gain on investments......... 12,208,263
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $11,611,350
===========
</TABLE>

See accompanying Notes to Financial Statements.

67
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000# DECEMBER 31, 1999
----------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:

OPERATIONS
Net investment loss......................... $ (596,913) $ (820,131)
Net realized gain on investments............ 1,000,335 10,730,797
Net unrealized appreciation on invesments... 11,207,928 38,810,890
------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... 11,611,350 48,721,556
------------ ------------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income.................. -- (2,789)
From net realized gain...................... (11,254,847) --
------------ ------------
TOTAL DISTRIBUTIONS..................... (11,254,847) (2,789)
------------ ------------

CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net
change in outstanding shares (a).......... 30,321,512 105,862,073
------------ ------------

TOTAL INCREASE IN NET ASSETS............ 30,678,015 154,580,840

NET ASSETS
Beginning of period......................... 164,014,137 9,433,297
------------ ------------
END OF PERIOD............................... $194,692,152 $164,014,137
============ ============
</TABLE>

(a) A summary of capital share transactions is as follows:

<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000# DECEMBER 31, 1999
----------------------------------------------------------------------------------------
------------------------- --------------------------
SHARES VALUE SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold..................... 2,537,434 $ 62,345,394 8,643,254 $146,353,712
Shares issued in reinvestment of
distributions................. -- -- 107 2,512
Shares redeemed................. (1,309,834) (32,023,882) (2,347,540) (40,494,151)
---------- ------------ ---------- ------------
NET INCREASE.................... 1,227,600 $ 30,321,512 6,295,821 $105,862,073
========== ============ ========== ============
</TABLE>

# Unaudited.

See accompanying Notes to Financial Statements.

68
<PAGE>
GUINNESS FLIGHT WIRED INDEX-TM- FUND

FINANCIAL HIGHLIGHTS

FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
DECEMBER 15,
SIX MONTHS 1998*
ENDED YEAR ENDED THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31,
2000# 1999 1998
------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period..... $23.52 $13.95 $12.50
------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)........... (0.07) (0.12) 0.00+
Net realized and unrealized gain on
investments.......................... 1.66 9.69 1.45
------ ------ ------
Total from investment operations......... 1.59 9.57 1.45
------ ------ ------
LESS DISTRIBUTION:
From net investment income............. -- (0.00)+ --
From net realized gain................. (1.37) -- --
------ ------ ------
Total distributions...................... (1.37) (0.00)+ --
------ ------ ------
Net asset value, end of period........... $23.74 $23.52 $13.95
====== ====== ======

Total return............................. 6.73 %++ 68.68 % 11.60%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions)..... $194.7 $164.0 $ 9.4
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived, expenses absorbed
and recouped......................... 1.13 %+ 1.38 % 1.97%+
After fees waived, expenses absorbed
and recouped......................... 1.16 %+ 1.35 % 1.35%+
RATIO OF NET INVESTMENT INCOME (LOSS) TO
AVERAGE NET ASSETS:
Before fees waived, expenses absorbed
and recouped......................... (0.60)%+ (0.92)% 0.02%+
After fees waived, expenses absorbed
and recouped......................... (0.63)%+ (0.89)% 0.60%+

Portfolio turnover rate.................. 20.97 %++ 39.82 % 0.11%++
</TABLE>

<TABLE>
<S> <C>
# Unaudited
* Commencement of operations.
+ Amount represents less than $0.01 per share.
+ Annualized.
++ Not annualized.
</TABLE>

See accompanying Notes to Financial Statements.

69
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM-

BACKDROP

As we present our inaugural letter to shareholders of the Wireless World
Fund-TM-, we are delighted to extend a welcome to investors in this fund. Since
the launch of the fund on February 28, 2000, we have heard from a number of
investors and are encouraged by the fact that so many share our enthusiasm for
the shift to wireless. We believe the shift to a wireless world will have far
reaching affects and touch every corner of the planet. Indeed, the shift is
happening at a remarkable pace.

At the end of 1999, there were a mere 465 million total cellular customers
worldwide. By 2003, however, Gartner Research expects there will be one billion
mobile phone users worldwide, with over a 70 percent penetration level in Europe
alone. Europe and Asia's most advanced banks and retailers are already offering
customer services using wireless technology.

THE FUND

The Wireless World Fund-TM- is thematic in nature and is invested for
absolute return. The fund structure is divided into software developers,
hardware manufacturers, operators, service providers, content providers and
components. We define each of the fund's sector classifications as follows:

Software developers have scalable business models that can drive significant
growth if their product becomes the industry standard. Our preference is for
companies that are able to secure repeat revenues, and which generate high
margins from their differentiated product offering. We have invested in
companies that offer software located both on the cellular handset (Palm
with its operating system for smart phones) and in the operators' system
(Amdocs for billing systems for operators, VeriSign for e-commerce
security).

Hardware manufacturers which benefit from making the handsets, cellular
towers and other infrastructure and components required to satisfy the
explosive demand in cellular usage and sophistication. Some technological
milestones such as the progression to 3G networks and the introduction of
Bluetooth-compatible devices will compound this growth. We have invested in
many different segments from infrastructure (Ericsson, the clear
technological leader) and handsets (Nokia, the clear market leader, and
Samsung, the innovative supplier) to components (RF Micro for radio
frequency chipsets).

Operators are the most intuitive investment group in the portfolio. They
have the unique ability to benefit from the final relationship with the
users of mobile devices and services, derive revenue from voice traffic and
increasingly add data services. Investments in this sub-sector are aimed to
take advantage of the continued consolidation and the opportunity to grow
revenues from wireless data services. Vodafone is the world's largest mobile
operator with close to 52 million subscribers worldwide.

70
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM- (CONTINUED)

Service providers offer their services over the wireless platform. New
companies tend to offer a specific scalable service over the wireless
platform, such as Aspiro, which offers stock trading and fleet management to
wireless users. New companies are also able to grow rapidly if their service
becomes the standard choice for operators. For established companies, the
cellular phone represents a new distribution medium. Banks such as Nordic
Baltic (formerly Nordbanken) are already offering a full range of banking
services over the cellular phone.

Content providers take advantage of the fact that wireless data delivery is
becoming sufficiently fast to justify sending more complex material to their
subscriber base. Much of this content is owned by old economy businesses,
but there are also companies developing content specifically for the mobile
environment. Content providers in this definition are able to generate
revenue from two sources: sharing traffic revenues with the operator for the
delivery of the content to the consumer and using the wireless medium to
transact with the consumer. The operator can derive revenue by sharing the
revenue generated by transactions and, more simply, from the increase in
traffic. An example of this type of investment would be Lagadere, which owns
magazine content in Europe that is being delivered to Deutsche Telekom's
subscriber base in the UK and Germany.

The components sector is mostly made up of semiconductor manufacturers. The
constituents all produce parts for the manufacture of wireless
communications devices or infrastructure. Parthus designs and manufactures
GPS and Bluetooth chipsets that are becoming integral components within
mobile handsets. While some of the companies are exposed to the cyclical end
of the semiconductor space, many other companies demonstrate secular growth
derived from being geared into the wireless revolution.

As the fund launched February 28 of this year, the second quarter reflected
the first period of genuine trading within the fund as well as a consolidation
of fund holdings. The sector allocation within the fund was significantly skewed
away from content, with that sector falling from 8.8% of the fund to 1.6%,
towards hardware and components. The second half of the quarter saw a modest
improvement in the performance of technology-related companies, and we believed
the hardware sectors would benefit more from this dynamic than would the content
names within the portfolio. New holdings in Infospace and Nextel Partners also
added value in the quarter.

Of the fifteen new stocks added during the second quarter, four were IPOs.
Our investment in Gilat Satellite, which is the world's largest satellite
broadcasting network and which is developing a two-way broadband consumer
Internet product, represents a further diversification within the portfolio away
from cellular telephony and towards other wireless services. Another Israeli
company, Comverse, develops multimedia telecommunications applications,
including voice mail, call waiting and ring back type services.

71
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM- (CONTINUED)

OUTLOOK

The investment case for wireless is supported by a proven technology, some
European markets seeing penetration levels of up to 70 percent and data revenues
of up to 10 percent of total turnover. However, the majority of usage to date is
still for voice communication. The real growth opportunity that we believe is
not reflected in valuations is in the wireless data market. New technology (GPRS
and 1XRT) is currently being installed on mobile networks around the world,
which will allow Internet connection speeds twice that of domestic fixed line
speeds by the end of 2000. Third generation (3G) networks will facilitate
transmission speeds of up 70x current fixed line dial up connections.

Within the wireless revolution, some changes will be small but welcome --
you'll no longer need cables to connect your PDA, your headset or your mobile
phone. Some changes will have a profound impact on business and society.

We determine the structure of the portfolio from both a top-down sector
perspective as well as individual stock selection. The sector preferences
reflect our intention to focus on those market segments that are particularly
well placed to benefit from wireless developments. The fund is exposed to a
diversity of sectors, including direct beneficiaries like wireless equipment
manufacturers, software and operators, and indirect beneficiaries such as
companies expected to offer a service or content over the cellular networks of
the future. The growth in services derived from significant technological
developments is creating new growth markets for existing companies and spawning
new companies.

-- Adrian Brass, Nigel Dutson, Seth Kirkham
London

72
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM-
--------------------------------------------------------------------------------
FUND HIGHLIGHTS
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
# of Holdings in Portfolio: 41
Portfolio Turnover: 16.2%
% of Stocks in Top 10: 36.4%
</TABLE>

FUND MANAGERS:
Nigel Dutson; Seth Kirkham; Adrian Brass

<TABLE>
<CAPTION>
TOP 10 HOLDINGS (% OF NET ASSETS)
<S> <C>
-------------------------------------
Aether Systems, Inc. 5.1%
Vodafone AirTouch Plc 4.4%
Nokia Oyj 4.1%
Ericsson AB 3.8%
VeriSign, Inc. 3.6%
Nextel Partners, Inc. --
Class A 3.2%
Alcatel 3.1%
MIPS Technologies, Inc. 3.1%
Oracle Corp. 3.0%
Amdocs Ltd. 3.0%
<CAPTION>
TOP 5 SECTORS (% OF NET ASSETS)
-------------------------------------
<S> <C>
Telecommunication Equipment 20.7%
Telecommunication Services 20.3%
Software 16.9%
Computer Equipment 11.6%
Wireless Equipment 8.7%
<CAPTION>
TOP 5 COUNTRIES (% OF NET ASSETS)
-------------------------------------
<S> <C>
United States 50.2%
United Kingdom 10.0%
Sweden 8.1%
Finland 7.1%
Israel 6.8%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE GUINNESS FLIGHT WIRELESS WORLD FUND-TM- AND
BARCLAYS GLOBAL CAPITAL WIRELESS

<TABLE>
<CAPTION>
GUINNESS FLIGHT
WIRELESS WORLD BARCLAYS GLOBAL
FUND-TM- CAPITAL WIRELESS
<S> <C> <C>
2/28/00* $10,000 $10,000
3/31/00 $9,600 $10,590
6/30/00 $9,208 $8,430
</TABLE>

*Inception date.

<TABLE>
<CAPTION>
TOTAL RETURN
SINCE INCEPTION
<S> <C>
-7.92%

73
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM-

SCHEDULE OF INVESTMENTS BY INDUSTRY
AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
SHARES
COMMON STOCKS: 92.2%
VALUE
---------------------------------------------------------------------------------
<C> <S> <C>
COMPUTER EQUIPMENT: 11.6%
19,900 3Com Corp.*....................................... $ 1,146,737
30,000 MIPS Technologies, Inc.*.......................... 1,275,000
12,100 M-Systems Flash Disk Pioneers Ltd.*............... 942,288
249,679 Parthus Technologies Plc*......................... 717,610
68,300 Psion Plc*........................................ 656,591
-----------
4,738,226
-----------
DIVERSIFIED OPERATIONS: 0.9%
4,740 Lagardere S.C.A................................... 361,795
-----------
ELECTRONICS: 2.9%
6,010 Samsung Electronics............................... 1,159,930
-----------
HOLDING OFFICES: 2.5%
136,360 Nordic Baltic Holding (NBH) AB.................... 1,028,461
-----------
INTERNET SERVICES: 6.1%
13,900 InfoSpace, Inc.*.................................. 767,975
381,800 Teamtalk.com Group Plc............................ 231,020
8,280 VeriSign, Inc.*................................... 1,461,420
-----------
2,460,415
-----------
SOFTWARE: 16.9%
15,800 Amdocs Ltd.*...................................... 1,212,650
44,550 Aspiro AB*........................................ 141,982
16,500 Commerce One, Inc.*............................... 748,945
53,550 Geo Interactive Media Group Plc*.................. 1,024,714
201,890 Intec Telecom Systems Plc*........................ 1,007,817
12,640 Lernout & Hauspie Speech Products N. V.*.......... 556,950
14,570 Oracle Corp.*..................................... 1,224,791
10,900 Phone.com, Inc.*.................................. 709,862
15,000 Sequoia Software Corp.*........................... 245,625
-----------
6,873,336
-----------
</TABLE>

74
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM-

SCHEDULE OF INVESTMENTS BY INDUSTRY
AT JUNE 30, 2000 (UNAUDITED) -- (CONTINUED)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
SHARES
VALUE
---------------------------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATION EQUIPMENT: 20.7%
19,500 Alcatel*.......................................... $ 1,278,160
32,960 CelPoint, Inc.*................................... 655,080
11,400 Comverse Technology, Inc.*........................ 1,060,200
78,360 Ericsson AB....................................... 1,550,847
11,300 Gilat Satellite Networks Ltd.*.................... 783,937
8,010 Netcom Systems, Inc.*............................. 591,415
32,280 Nokia Oyj......................................... 1,646,172
30,000 Stratos Lightwave, Inc.*.......................... 836,250
-----------
8,402,061
-----------
TELECOMMUNICATION SERVICES: 20.3%
14,420 ALLTEL Corp....................................... 893,139
100,000 AU-System AB*..................................... 567,086
17,710 Bell Atlantic Corp.*.............................. 899,889
32,750 Crown Castle International Corp.*................. 1,195,375
40,200 Nextel Partners, Inc. - Class A*.................. 1,309,012
110,503 PNC Tele.com Plc*................................. 397,836
48,790 Socket Communications, Inc.*...................... 640,369
13,000 Sonera Oyj........................................ 592,258
444,480 Vodafone AirTouch Plc............................. 1,776,791
-----------
8,271,755
-----------
TRAVEL SERVICES: 1.6%
22,800 Sabre Holdings Corp............................... 649,800
-----------
</TABLE>

75
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM-

<TABLE>
<C> <S> <C>
* Non-income producing security.
+ At June 30, 2000, the basis of investments for federal income tax
purposes was the same as their cost for financial reporting purposes.
Unrealized appreciation and depreciation were as follows:
Gross unrealized appreciation............................... $ 4,202,732
Gross unrealized depreciation............................... (6,870,772)
-----------
Net unrealized appreciation................................. $(2,668,040)
===========
</TABLE>

See accompanying Notes to Financial Statements.

76
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM-

STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, at value (cost $40,163,424)...... $37,495,384
Cash........................................................ 4,100,228
Receivables:
Securities sold......................................... 513,734
Fund shares sold........................................ 150,959
Dividends and interest.................................. 31,457
Prepaid expenses............................................ 1,284
-----------
Total assets............................................ 42,293,046
-----------

LIABILITIES
Payables:
Securities purchased.................................... 1,502,181
Fund shares redeemed.................................... 64,681
Unrealized loss on forward foreign currency contracts... 77
Due to advisor (Note 3)................................. 32,974
Accrued expenses............................................ 25,545
-----------
Total liabilities....................................... 1,625,458
-----------
NET ASSETS.................................................. $40,667,588
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($40,667,588/3,533,439 shares outstanding; unlimited
number of shares authorized without par value).......... $11.51
------
-------
COMPONENTS OF NET ASSETS
Paid-in capital......................................... $43,994,795
Accumulated net investment loss......................... (25,008)
Accumulated net realized loss on investments and foreign
currency.............................................. (633,946)
Net unrealized depreciation on:
Investments......................................... (2,668,040)
Foreign Currency.................................... (213)
-----------
NET ASSETS.................................................. $40,667,588
===========
</TABLE>

See accompanying Notes to Financial Statements.

77
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM-

STATEMENT OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
FOR THE PERIOD
ENDED
JUNE 30, 2000*
-------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
INCOME
Dividends (net of foreign tax withheld of $4,215)........... $ 38,941
Interest.................................................... 95,966
-----------
Total income............................................ 134,907
-----------

EXPENSES
Advisory fees (Note 3)...................................... 101,185
Custody fees................................................ 17,448
Fund accounting fees........................................ 10,164
Transfer agent fees......................................... 8,537
Registration expense........................................ 6,418
Reports to shareholders..................................... 5,844
Audit fees.................................................. 5,082
Administration fees (Note 3)................................ 5,059
Trustee fees................................................ 2,556
Miscellaneous............................................... 1,694
Legal fees.................................................. 283
Insurance expense........................................... 103
-----------
Total expenses.......................................... 164,373
Less: Fees waived (Note 3).............................. (4,458)
-----------
Net expenses............................................ 159,915
-----------
NET INVESTMENT LOSS................................. (25,008)
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY
Net realized loss on investments............................ (621,602)
Net realized loss on foreign currency....................... (12,344)
Net unrealized depreciation on:
Investments............................................. (2,668,040)
Foreign currency........................................ (213)
-----------
Net realized and unrealized loss on investments and
foreign currency...................................... (3,302,199)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $(3,327,207)
===========
</TABLE>

* Commenced operations on February 28, 2000.

See accompanying Notes to Financial Statements.

78
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM-

STATEMENT OF CHANGES IN NET ASSETS

OPERATIONS
Net investment loss......................................... $ (25,008)
Net realized loss on investments............................ (621,602)
Net realized loss on foreign currency....................... (12,344)
Net unrealized depreciation on:
Investments............................................. (2,668,040)
Foreign currency........................................ (213)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS.... (3,327,207)
-----------

CAPITAL SHARE TRANSACTIONS:
Net increase in net assets derived from net change in
outstanding shares (a).................................... 43,994,795
-----------
TOTAL INCREASE IN NET ASSETS............................ 40,667,588

NET ASSETS
Beginning of period......................................... --
-----------
END OF PERIOD............................................... $40,667,588
===========
</TABLE>

(a) A summary of capital share transactions is as follows:

<TABLE>
<CAPTION>
FEBRUARY 28, 2000*
THROUGH
JUNE 30, 2000#
--------------------------------------------------------------------------------
------------------------
SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
Shares sold........................................... 4,156,805 $51,057,913
Shares redeemed....................................... (623,366) (7,063,118)
--------- -----------
NET INCREASE.......................................... 3,533,439 $43,994,795
========= ===========
</TABLE>

# Unaudited.

* Commencement of operations.

See accompanying Notes to Financial Statements.

79
<PAGE>
GUINNESS FLIGHT WIRELESS WORLD FUND-TM-

FINANCIAL HIGHLIGHTS

FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
FEBRUARY 28, 2000*
THROUGH
JUNE 30, 2000#
--------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period........................ $12.50
------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss....................................... (0.01)
Net realized and unrealized loss on investments and
foreign currency........................................ (0.98)
------
Total from investment operations............................ (0.99)
------
Net asset value, end of period.............................. $11.51
======

Total return................................................ (7.92)%++

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions)........................ $ 40.7

RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived........................................ 1.61 %+
After fees waived......................................... 1.56 %+

RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS:
Before fees waived........................................ (0.29)%+
After fees waived......................................... (0.24)%+

Portfolio turnover rate..................................... 16.18 %++
</TABLE>

<TABLE>
<S> <C>
# Unaudited
* Commencement of operations.
+ Annualized.
++ Not annualized.
</TABLE>

See accompanying Notes to Financial Statements.

80
<PAGE>
GUINNESS FLIGHT INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION

Guinness Flight Investment Funds (the "Trust"), a Delaware business trust,
formerly the Guinness Flight Investment Funds Inc. (a Maryland corporation
incorporated on January 7, 1994), was organized on April 28, 1997 as a Delaware
business Trust and registered under the Investment Company Act of 1940 as a
non-diversified, open-end management investment company. Currently, the Trust
offers seven separate series: Guinness Flight Asia Blue Chip Fund (the "Asia
Blue Chip Fund") whose objective is long-term capital appreciation, Guinness
Flight Asia Small Cap Fund (the "Asia Small Cap Fund") whose objective is long-
term capital appreciation, Guinness Flight China & Hong Kong Fund (the "China &
Hong Kong Fund") whose objective is long-term capital appreciation, Guinness
Flight internet.com Index-TM- Fund (the "internet.com Index-TM- Fund") whose
objective is long-term capital appreciation, Guinness Flight Mainland China Fund
(the "Mainland China Fund") whose objective is long-term capital appreciation,
Guinness Flight Wired Index-TM- Fund (the "Wired Index-TM- Fund") whose
objective is long-term capital appreciation and Guinness Flight Wireless World
Fund-TM- (the "Wireless World Fund-TM-") whose objective is long-term capital
appreciation (collectively, the "Funds"). The China & Hong Kong Fund began
operations on June 30, 1994, the Asia Blue Chip and Asia Small Cap Funds began
operations on April 29, 1996, the Mainland China Fund began operations on
November 3, 1997, the Wired Index-TM- Fund began operations on December 15,
1998, the internet.com Index-TM- Fund began operations on July 31, 1999 and the
Wireless World Fund-TM- began operations on February 28, 2000.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles.

A. SECURITY VALUATION. Investments in securities traded on a national
securities exchange or Nasdaq are valued at the last reported sales price at the
close of regular trading on each day that the exchanges are open for trading;
securities traded on an exchange or Nasdaq for which there have been no sales
and other over-the-counter securities are valued at the last reported bid price.
Securities for which quotations are not readily available are valued at their
respective fair values as determined in good faith by the Board of Trustees. Due
to the inherent uncertainty of valuation, those estimated values of not readily
marketable securities may differ significantly from the values that would have
been used had a ready market for the securities existed. The differences could
be material. Short-term investments are stated at cost, which when combined with
accrued interest, approximates market value. Realized gains and losses from
securities transactions are calculated using the identified cost method.

81
<PAGE>
GUINNESS FLIGHT INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------

Foreign securities are recorded in the financial statements after
translation to U.S. dollars based on the applicable exchange rate at the end of
the period. The Funds do not isolate that portion of the results of operations
arising as a result of changes in the currency exchange rate from the
fluctuations arising as a result of changes in the market prices of investments.

Foreign interest income is translated using the exchange rate in existence
on the date the income is accrued. Exchange gains and losses related to the
translation of interest income are included in interest income on the
accompanying Statement of Operations.

B. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. The Funds may utilize
forward foreign currency exchange contracts ("forward contracts") to hedge
against foreign exchange fluctuations on foreign denominated investments under
which they are obligated to exchange currencies at specific future dates and at
specified rates, subject to the risks of foreign exchange fluctuations. All
commitments are "marked-to-market" daily and any resulting unrealized gains or
losses are included as unrealized appreciation (depreciation) on foreign
currency denominated assets and liabilities. The Funds record realized gains or
losses at the time the forward contract is settled. Counterparties to these
contracts are major U.S. financial institutions.

C. SECURITY TRANSACTIONS, DIVIDEND INCOME AND DISTRIBUTIONS. Security
transactions are accounted for on the trade date. Dividend income and
distributions to shareholders are recorded on the ex-dividend date.

D. FEDERAL INCOME TAXES. The Funds intend to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.

As of June 30, 2000, the following Funds have capital loss carryforward's
available to offset future realized capital gains: the Asia Blue Chip Fund has a
capital loss carryforward of $3,118,823 expiring in 2006, the Asia Small Cap
Fund has a capital loss carryforward of $88,450,286, of which $17,996,189
expires in year 2005, $62,854,581 expires in year 2006 and $7,599,516 expires in
2007; the China & Hong Kong Fund has a capital loss carryforward of $63,563,064
expiring in 2006 and the Mainland China Fund has a capital loss carryforward of
$3,564,330, of which $2,515,925 expires in year 2006 and $1,048,405 expires in
year 2007. To the extent that such carryforward's are used, no capital gains
distributions will be made.

E. DEFERRED ORGANIZATION COSTS. The Asia Blue Chip Fund and the Asia Small
Cap Fund have each incurred expenses of $8,745 in connection with their
organization. The Mainland China Fund has incurred an expense of $23,338 in
connection with its organization. These costs have been deferred and are being
amortized on a straight-line basis over a period of five years from the date the
Funds commenced investment operations. In the event that any of

82
<PAGE>
GUINNESS FLIGHT INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
the initial shares of the Funds are redeemed by their holders during the period
of amortization of the Funds' organization costs, the redemption proceeds will
be reduced by any such unamortized organization costs in the same proportion as
the number of initial shares being redeemed bears to the number of those shares
outstanding at the time of redemption.

F. CONCENTRATION OF RISK. The Asia Blue Chip Fund and Asia Small Cap Fund
invest substantially all of their assets in the Asian continent. The China &
Hong Kong Fund and Mainland China Fund invest substantially all of their assets
in securities that are traded in China or Hong Kong or that are issued by
companies that do a substantial part of their business in China. The Wired
Index-TM- Fund invests substantially all of its assets in securities of
companies that comprise the Wired Index-TM-. The Wireless World Fund-TM- invests
substantially all of its assets in securities of companies with substantial
business interest in, or that will benefit from, a shift toward wireless
communication. The internet.com Index-TM- Fund invests substantially all of its
assets in securities of companies that comprise the internet.com Index-TM-. The
consequences of political, social or economic changes in the countries or
business sectors in which the securities are offered or the issuers conduct
their operations may affect the market prices of the Funds' investments and any
income generated, as well as the Funds' ability to repatriate such amounts.

In 1998, Malaysian government implemented certain foreign exchange control
measures which included the requirement for portfolio capital to be in Malaysia
for at least 12 months prior to repatriation. On February 4, 1999, the 12 month
holding rule was replaced with a graduated levy on the repatriation of capital
invested. These restrictions affected the liquidity and valuation of Malaysian
securities which were valued at their fair values as determined in good faith by
the board of Trustees. On June 30, 2000, the Asia Blue Chip fund and Asia Small
Cap Fund held $524,842 and $2,078,947 of Malaysian securities, respectively, or
5.6% and 7.8% of their net assets, respectively. These investments are valued at
their fair values as determined in good faith by the Board of Trustees.

G. USE OF ESTIMATES. 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. Actual results could differ from those estimates.

NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS

The Trust, on behalf of each Fund, entered into an Investment Advisory Agreement
with Investec Asset Management U.S. Limited (the "Advisor"), formally Investec
Guinness Flight Global Asset Management Limited, provided the Funds with
investment management services under an Investment Advisory Agreement. The
Advisor furnishes all investment advice,

83
<PAGE>
GUINNESS FLIGHT INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
office space, facilities and most of the personnel needed by the Funds. As
compensation for its services, the Advisor was entitled to a monthly fee at the
following annual rates based upon the average daily net assets of the Funds:

<TABLE>
<S> <C> <C>
Asia Blue Chip Fund 1.00%
Asia Small Cap Fund 1.00%
China & Hong Kong Fund 1.00%
internet.com Index-TM- Fund 0.90% on the first $100 million
0.75% on the next $100 to $500 million
and
0.60% on assets over $500 million
Mainland China Fund 1.00%
Wired Index-TM- Fund 0.90% on the first $100 million
0.75% on the next $100 to $500 million
and
0.60% on assets over $500 million
Wireless World Fund-TM- 1.00%
</TABLE>

The Funds are responsible for their own operating expenses. The Advisor has
contractually agreed to limit the Funds' total operating expenses, through
June 30, 2001, by reducing all or a portion of their fees and reimbursing the
Funds' for expenses so that its ratio of expenses to average daily net assets
will not exceed the following levels:

<TABLE>
<S> <C> <C>
Asia Blue Chip Fund 1.98%
Asia Small Cap Fund 1.98%
internet.com Index-TM- Fund 1.35%
Mainland China Fund 1.98%
Wired Index-TM- Fund 1.35%
Wireless World Fund-TM- 1.75%
</TABLE>

For the six months ended June 30, 2000, the Advisor waived fees and absorbed
expenses as follows:

<TABLE>
<S> <C>
Asia Blue Chip Fund $43,720
Asia Small Cap Fund $59,366
internet.com Index-TM- Fund $31,186
Mainland China Fund $60,424
Wireless World Fund-TM- $ 4,458
</TABLE>

For the six months ended June 30, 2000, the Wired Index-TM- Fund recouped
$28,990.

Expenses reimbursed by the Advisor through December 31, 1997 may be recouped
from the Funds through December 31, 2002, and are subject to the Funds' ability
to effect such reimbursement and remain in compliance with applicable expense
limitations. In addition, the recoupment period of any expense reimbursements in
each year subsequent to

84
<PAGE>
GUINNESS FLIGHT INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
1997 will be limited to five years from the year of the reimbursement, and are
subject to the Funds' ability to effect such reimbursement and remain in
compliance with applicable expense limitations.

At June 30, 2000, the Advisor may recapture a portion of the above amounts
no later than the dates as stated below:

<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------
FUNDS: 2002 2003 2004 2005
------ ---- ---- ---- ----
<S> <C> <C> <C> <C>
Asia Blue Chip Fund $223,588 $140,722 $ 89,137 $43,720
Asia Small Cap Fund -- $181,002 $152,568 $59,366
internet.com Index-TM- Fund -- -- $ 69,971 $31,186
Mainland China Fund $ 11,487 $160,801 $154,800 $60,424
Wireless World Fund-TM- -- -- -- $ 4,458
</TABLE>

At June 30, 2000, the amount available for reimbursement that has been paid
and/or waived by the Advisor on the behalf of the Funds are as follows:

<TABLE>
<S> <C>
Asia Blue Chip Fund $497,167
Asia Small Cap Fund $392,936
internet.com Index-TM- Fund $101,157
Mainland China Fund $387,512
Wireless World Fund-TM- $ 4,458
</TABLE>

Investment Company Administration, L.L.C. (the "Administrator") acts as the
Funds' Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Funds; prepares reports and materials to be supplied to the Trustees;
monitors the activities of the Funds' custodian, transfer agent and accountants;
coordinates the preparation and payment of the Funds'

85
<PAGE>
GUINNESS FLIGHT INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
expenses and reviews the Funds' expense accruals. For its services, the
Administrator receives a monthly fee from each Fund at the following annual
rates with a minimum fee of $120,000, excluding the China & Hong Kong Fund:

<TABLE>
<CAPTION>
FUND ASSET BASED FEE
---- ---------------
<S> <C>
China & Hong Kong Fund 0.25% of average daily net
assets subject to $40,000
annual minimum.

Asia Blue Chip Fund, Asia Small 0.25% of average daily net
Cap Fund, China & Hong Kong assets.
Fund and Mainland China Fund

Wired Index-TM- Fund, Wireless 0.05% of average daily net
World Fund-TM- and internet.com assets.
Index-TM- Fund
</TABLE>

For the six months ended June 30, 2000 the following Funds incurred the
following Administration fees:

<TABLE>
<S> <C>
Asia Blue Chip Fund $ 12,296
Asia Small Cap Fund $ 41,371
China & Hong Kong Fund $179,429
internet.com Index-TM- Fund $ 11,777
Mainland China Fund $ 15,099
Wired Index-TM- Fund $ 47,330
Wireless World Fund-TM- $ 5,059
</TABLE>

First Fund Distributors, Inc. (the "Distributor") acts as the Funds'
principal underwriter in a continuous public offering of the Funds' shares. The
Distributor is an affiliate of the Administrator.

Certain officers of the Funds are also officers and/or Directors of the
Advisor, Administrator and Distributor.

86
<PAGE>
GUINNESS FLIGHT INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------

NOTE 4 - PURCHASES AND SALES OF SECURITIES

The cost of purchases and the proceeds from sales of securities, other than
short-term investments, for the six months ended June 30, 2000 were as follows:

<TABLE>
<CAPTION>
FUND PURCHASES SALES
---- --------- -----
<S> <C> <C>
Asia Blue Chip Fund $ 4,518,362 $ 5,301,415
Asia Small Cap Fund $11,973,389 $18,278,722
China & Hong Kong Fund $26,881,063 $51,390,874
internet.com Index-TM- Fund $22,488,444 $14,026,269
Mainland China Fund $ 7,297,376 $ 8,077,267
Wired Index-TM- Fund $68,707,893 $39,525,366
Wireless World Fund-TM- $44,352,457 $ 4,077,900
</TABLE>

NOTE 5 - FORWARD FOREIGN CURRENCY CONTRACTS

At June 30, 2000 the Funds had entered into forward contracts which obligated
them to exchange currencies at specified future dates. At the maturity of a
forward contract, the Funds may either make delivery of the foreign currency
from currency held, if any, or from the proceeds of the portfolio securities
sold. It may also terminate its obligation to deliver the foreign currency at
any time by purchasing an offsetting contract. The forward value of amounts due
are netted against the forward value of the currency to be delivered and the net
amount is shown as a receivable or payable in the financial statements. Open
forward contracts at June 30, 2000 were as follows:

GUINNESS FLIGHT ASIA SMALL CAP FUND

<TABLE>
<CAPTION>
DELIVERY UNREALIZED
CURRENCY RECEIVABLE CURRENCY DELIVERABLE DATE GAIN/(LOSS)
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
US$ 202,141 Philippine Peso 8,738,563 07/05/00 $(1,485)
-------
Total Forward Contracts $(1,485)
=======
</TABLE>

GUINNESS FLIGHT CHINA & HONG KONG FUND

<TABLE>
<CAPTION>
DELIVERY UNREALIZED
CURRENCY RECEIVABLE CURRENCY DELIVERABLE DATE GAIN/(LOSS)
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
US$ 2,094,741 Hong Kong Dollar 16,328,468 07/03/00 $ (274)
US$ 133,732 Hong Kong Dollar 1,042,434 07/03/00 (18)
-------
Total Forward Contracts $ (292)
=======
</TABLE>

87
<PAGE>
GUINNESS FLIGHT INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------

GUINNESS FLIGHT MAINLAND CHINA FUND

<TABLE>
<CAPTION>
DELIVERY UNREALIZED
CURRENCY RECEIVABLE CURRENCY DELIVERABLE DATE GAIN/(LOSS)
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
US$ 7,394 Hong Kong Dollar 57,638 07/03/00 $ (1)
-------
Total Forward Contracts $ (1)
=======
</TABLE>

GUINNESS FLIGHT WIRELESS WORLD FUND-TM-

<TABLE>
<CAPTION>
DELIVERY UNREALIZED
CURRENCY PAYABLE CURRENCY DELIVERABLE DATE GAIN/(LOSS)
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------
US$ 401,261 British Pound Sterling 265,207 07/10/00 $ (77)
-------
Total Forward Contracts $ (77)
=======
</TABLE>

88
<PAGE>

USEFUL GUINNESS FLIGHT PHONE NUMBERS
Shareholder Service Line: 1-800-915-6566
Fund Literature Line: 1-800-915-6565
Automated OneCall Center: 1-800-915-6564
Website: http://www.gffunds.com

This report is intended for the shareholders of the
Guinness Flight Investment Funds and may not be used
as sales literature unless preceded or accompanied by a
current prospectus.

Past performance results shown in this report should not
be considered a representation of future performance.
Share price and returns will fluctuate so that shares.
when redeemed may be worth more or less than their
original cost. Statements and other information herein
are dated and are subject to change.

MC40-103-0800