THE CRM FUNDS
================================================================================
FUND AND SHAREHOLDER ACCOUNT INFORMATION:
PFPC, Inc.
P.O. Box 8742
Wilmington, DE 19899
(800)CRM-2883
--------------------------------------------------------------------------------
ANNUAL REPORT JUNE 30, 2000
--------------------------------------------------------------------------------
Dear Fellow Shareholder,
For the twelve month period ending June 30, 2000, Investor Shares of CRM Small
Cap Value Fund and CRM Large Cap Value Fund provided total returns of 8.84% and
(2.85)%, respectively. These results compare to 14.32% and 5.33% returns for the
Russell 2000 Index and S&P 500 Index, respectively.1
The quarter ending June 30 signaled a return to normalcy, i.e., a more rational
environment which favored companies with real earnings rather than concepts. A
market correction was both inevitable and overdue, and the NASDAQ fell 37%
between March 10 and May 23 of this year. While Internet companies, in
particular, have been forgiven for their lack of profitability in favor of brand
recognition and top-line revenue growth, factors such as negative cash flow,
poor working capital management and mounting debt have investors questioning the
viability of many stand-alone Internet enterprises.
This market shift marked a reversal in relative returns for value stocks, which
outperformed growth stocks for only the second time in the last seven quarters.
While the environment for value managers has improved, our focus has always been
on buying good businesses at attractive valuations, rather than taking advantage
of short-term market shifts or momentum moves up or down. Also, this bottom up
process focuses on stock selection rather than sector rotation. In recent
months, we have been under-weighted relative to comparable indices in such
sectors as financial service stocks, consumer discretionary stocks and consumer
staples stocks. In each sector, however, our stock selection resulted in better
returns than the overall index.
CRM Small Cap Value Fund had several major contributors to performance during
the 2nd quarter, which included companies being bought out, gains from new
purchases, as well as performance from some prior holdings which were oversold
during the first quarter. Primark Corporation agreed to a $38/share cash
purchase price from Thomson. International Home Foods agreed to be bought by
Conagra in a combination stock and cash transaction. Artesyn Technologies, a
stock purchased during the first quarter, gained nearly 50% during the second
quarter, as investors were pleasantly surprised by robust earnings. Both Casella
Waste and Bay View Capital are not completely on the mend, but these stocks
rebounded nearly 50% and 30%, respectively, as they were both tremendously
oversold during the first quarter.
--------------------------------------------------------------------------------
THE CRM FUNDS
1
<PAGE>
--------------------------------------------------------------------------------
CRM Large Cap Value Fund has recently benefited from several important themes
prevalent in the U.S. economy. Specifically, we have continued to make
investments in the electric utility industry, which continues to undergo
deregulation and restructuring. PECO Energy and Duke Energy are good examples of
this trend, and made strong contributions to performance. We have also found
attraction among the educational publishers due to their compelling value and
attention as a current political issue of some prominence. Harcourt and McGraw
Hill have been strong performers in this group. Finally, we have participated in
the consolidation in the food industries: Nabisco Group was our best performer
in the second quarter with additional gains from Philip Morris and PepsiCo.
Looking over the landscape today, it appears as though the Federal Reserve's
year-long series of interest rate increases is slowing the economy. Retail sales
fell during the quarter, led by declines in auto sales, as increasing interest
rates and gas prices have slowed the consumer boom for new autos. The national
unemployment rate rose to 4.1% in May, suggesting the labor market is starting
to cool. Forecasts for second quarter economic growth show that it has slowed to
an annual rate of 3.5%, versus 5.5% during the first quarter. This led the
Federal Reserve to hold rates at current levels, as expected, in late June but
forecast the possibility of future increases if the economy threatens
accelerating inflation. While the April and May increases in consumer spending
were the lowest in over a year and new home sales dropped to their lowest levels
in eight months, things could pick up later in the year. Pundits remain divided
on whether or not the Fed will be able to successfully orchestrate a soft
landing for the economy. While the rest of the world focuses on these issues, we
will continue our process of buying quality companies at attractive relative
valuations with good balance sheets, strong management teams and efficacious
products/ services in large markets.
Sincerely,
The CRM Funds
/S/ SIGNATURE /S/ SIGNATURE
Ronald H. McGlynn Robert J. Christian
President and CEO President
Cramer Rosenthal McGlynn, LLC WT Mutual Fund
1 These indices do not include the effect of any expenses, which have been
deducted from each Fund's return. Individuals cannot invest directly in any
index.
During the period certain fees and expenses were waived by the service
providers. Without these waivers total returns would have been lower.
Additional performance figures for the Funds can be found in the Comparison of
Change in Value of $10,000 Investment section of this report.
The views in this report were those of the Funds' managers as of June 30, 2000
and may not reflect the views of the managers on the date this report is first
published or any time thereafter. These views are intended to assist
shareholders of the Funds in understanding their investment in the Funds and do
not constitute investment advice.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
THE CRM FUNDS
2
<PAGE>
--------------------------------------------------------------------------------
CRM SMALL CAP VALUE FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
JUNE 30, 2000
================================================================================
The following information compares a change in value of a $10,000 investment in
the Investor Shares of the CRM Small Cap Value Fund ("Fund") with the
performance of the Russell 2000 Index and Russell 2000 Value Index since
inception on 10/1/95. The Russell 2000 Index is an unmanaged capitalization
weighted index of 2000 small capitalization U.S. companies. The Russell 2000
Value Index consists of 1,292 securities of the 2000 securities in the Russell
2000 Index with lower price-to-book ratios and lower forecasted growth values.
The index returns reflect the reinvestment of dividends, but exclude the effect
of any expenses, which have been deducted from the Fund's return. Total return
and principal value of an investment in the Fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Total return for the Fund assumes reinvestment of dividends and
distributions. PAST PERFORMANCE CANNOT PREDICT NOR GUARANTEE FUTURE RESULTS.
CRM SMALL CAP VALUE FUND VS RUSSELL 2000 INDEX AND RUSSELL 2000 VALUE INDEX
INVESTMENT VALUE ON 6/30/00
---------------------------
CRM Small Cap Value Fund-Investor Shares $18,251
Russell 2000 Index $17,731
Russell 2000 Value Index $16,055
AVERAGE ANNUAL TOTAL RETURN A/O: 6/30/00 ONE YEAR SINCE INCEPTION ON 10/1/95
---------------------------------------- -------- --------------------------
CRM Small Cap Value Fund-Investor Shares 8.84% 13.49%**
Russell 2000 Index 14.32% 12.83%*
Russell 2000 Value Index (0.94)% 10.49%*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
CRM Small Cap
Value Fund-Investor Russell 2000 Russell 2000
Shares Index Value
10/01/95 $10,000 $10,000 $10,000
06/30/96 13,405 11,275 11,181
06/30/97 17,053 13,116 14,339
06/30/98 19,781 15,280 17,190
06/30/99 16,768 15,510 16,207
06/30/00 18,251 17,731 16,055
* Average annual returns for the Russell 2000 Index and Russell 2000 Value
Index are based on an inception date of 9/30/95. The Fund is professionally
managed while the indices are unmanaged and are not available for investment.
** Total return would have been lower had certain fees and expenses not been
voluntarily waived and/or reimbursed.
--------------------------------------------------------------------------------
THE CRM FUNDS
3
<PAGE>
--------------------------------------------------------------------------------
CRM LARGE CAP VALUE FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
JUNE 30, 2000
================================================================================
The following information compares a change in value of a $10,000 investment in
the Investor Shares of the CRM Large Cap Value Fund ("Fund") with the
performance of the Standard and Poor's 500 Composite Index ("S&P 500") since
inception on 8/25/98. The S&P 500 is an unmanaged market weighted index composed
of 500 large capitalization companies and reflects the reinvestment of
dividends. The index excludes the effect of any expenses, which have been
deducted from the Fund's return. Total return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Total return for
the Fund assumes reinvestment of dividends and distributions. PAST PERFORMANCE
CANNOT PREDICT NOR GUARANTEE FUTURE RESULTS.
CRM LARGE CAP VALUE FUND VS S&P 500 INDEX
INVESTMENT VALUE ON 6/30/00
---------------------------
CRM Large Cap Value Fund-Investor Shares $11,891
S&P 500 Index $15,109
CUMULATIVE TOTAL RETURN A/O: 6/30/00 ONE YEAR SINCE INCEPTION ON 8/25/98
------------------------------------ -------- --------------------------
CRM Large Cap Value Fund-Investor Shares (2.85)%** 9.80%**
S&P 500 Index 5.33% 25.21%*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
CRM Largel Cap
Value Fund-Investor
Shares S&P 500 Index
8/25/98 $10,000 $10,000
6/30/99 12,240 14,344
6/30/00 11,891 15,109
* Average annual return for the S&P 500 Index is based on an inception date of
8/31/98. The Fund is professionally managed while the index is unmanaged and
is not available for investment.
** Total return would have been lower had certain fees and expenses not been
voluntarily waived and/or reimbursed.
--------------------------------------------------------------------------------
THE CRM FUNDS
4
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
================================================================================
SMALL CAP LARGE CAP
VALUE FUND VALUE FUND
------------ ----------
ASSETS
Investment in Series, at value ............... $173,996,188 $7,942,415
Receivable for Fund shares sold .............. 42,043 --
Receivable for investment in Series withdrawn 226,954 --
Organizational costs (Note 2) ................ 4,382 --
Other assets ................................. 33,790 2,292
------------ ----------
Total assets ...................................... 174,303,357 7,944,707
------------ ----------
LIABILITIES
Payable for Fund shares redeemed ............. 226,954 --
Payable for investment in Series ............. 42,043 --
Accrued expenses and other liabilites ........ 121,465 3,334
------------ ----------
Total liabilities ................................. 390,462 3,334
------------ ----------
NET ASSETS ........................................ $173,912,895 $7,941,373
============ ==========
COMPONENTS OF NET ASSETS
Paid in Capital .............................. $162,227,757 $7,976,049
Undistributed net investment income .......... -- 5,844
Accumulated net realized gain (loss) ......... 5,636,621 (972,744)
Net unrealized appreciation on investments ... 6,048,517 932,224
------------ ----------
NET ASSETS ........................................ $173,912,895 $7,941,373
============ ==========
NET ASSETS BY SHARE CLASS
Investor Shares .............................. $ 69,351,015 $7,941,373
Institutional Shares ......................... 104,561,880 --
------------ ----------
$173,912,895 $7,941,373
============ ==========
SHARES OF BENEFICIAL INTEREST OUTSTANDING
($0.01 par value, unlimited authorized shares)
Investor Shares .............................. 4,264,430 683,110
Institutional Shares ......................... 6,342,309 --
NET ASSET VALUE (OFFERING PRICE AND
REDEMPTION PRICE) PER SHARE
Investor Shares .............................. $16.26 $11.63
Institutional Shares ......................... $16.49 --
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES. THE CRM FUNDS
5
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
STATEMENTS OF OPERATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
================================================================================
SMALL CAP LARGE CAP
VALUE FUND+ VALUE FUND+
----------- -----------
INVESTMENT INCOME
Investment income from Series .............. $ 617,759 $ 83,803
Expenses from Series ....................... (974,713) (38,072)
------------ -----------
Net investment income (loss) from Series . (356,954) 45,731
Dividends .................................. 233,900 81,863
Interest ................................... 41,219 18,934
------------ -----------
Total investment income (loss) .................. (81,835) 146,528
------------ -----------
EXPENSES
Investment advisory fees ................... 437,279 52,188
Shareholder services--Investor Shares ...... 195,045 31,089
Administration fees ........................ 76,773 34,437
Transfer agent services .................... 122,937 22,491
Professional services ...................... 58,139 24,200
Registration fees .......................... 66,140 36,370
Accounting services ........................ 42,116 24,098
Custody fees ............................... 9,283 9,276
Trustee fees and expenses .................. 3,190 3,190
Amortization of organizational costs ....... 17,346 --
Printing ................................... 58,334 10,745
Miscellaneous .............................. 17,369 5,540
------------ -----------
Total expenses .................................. 1,103,951 253,624
Expenses reimbursed and fees waived (Note 4) -- (112,969)
------------ -----------
Net expenses ............................... 1,103,951 140,655
------------ -----------
NET INVESTMENT INCOME (LOSS)..................... (1,185,786) 5,873
------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from investments .. 34,576,089 (972,764)
Net change in unrealized appreciation
(depreciation) of investments ........... (19,368,774) (2,227,093)
------------ -----------
Net realized and unrealized gain
(loss) on investments ...................... 15,207,315 (3,199,857)
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ..................... $ 14,021,529 $(3,193,984)
============ ===========
+ Reflects operating history of predecessor mutual fund (see note 5).
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES. THE CRM FUNDS
6
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND
---------------------------------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED
JUNE 30, JUNE 30, SEPTEMBER 30,
2000+ 1999(A)+ 1998+
------------ ------------ ------------
<S> <C> <C> <C>
NET ASSETS -- BEGINNING OF PERIOD .............................. $184,857,401 $179,175,027 $144,000,755
------------ ------------ ------------
OPERATIONS
Net investment loss ....................................... (1,185,786) (62,625) (550,558)
Net realized gain (loss) from investments ................. 34,576,089 (24,868,940) (3,867,578)
Net change in unrealized appreciation (depreciation)
of investments .......................................... (19,368,774) 39,680,895 (39,373,134)
------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations ...................................... 14,021,529 14,749,330 (43,791,270)
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gain on investments -- Investor Shares .. -- -- (7,725,721)
Return of capital -- Investor Shares ...................... -- (32,526) (212,312)
Return of capital -- Institutional Shares ................. -- (21,148) --
------------ ------------ ------------
Total distributions to shareholders ..................... -- (53,674) (7,938,033)
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Sale of shares -- Investor Shares ......................... 11,975,007 20,036,102 86,883,053
Sale of shares -- Institutional Shares .................... 26,188,988 47,952,631 64,007,466
Reinvestment of distributions -- Investor Shares .......... -- 29,522 7,442,799
Reinvestment of distributions -- Institutional Shares ..... -- 17,473 --
Redemption of shares -- Investor Shares ................... (43,002,583) (61,826,506) (67,420,738)
Redemption of shares -- Institutional Shares .............. (20,127,447) (15,222,504) (4,009,005)
------------ ------------ ------------
Net increase (decrease) from capital share transactions . (24,966,035) (9,013,282) 86,903,575
------------ ------------ ------------
Total increase (decrease) in net assets ................. (10,944,506) 5,682,374 35,174,272
------------ ------------ ------------
NET ASSETS -- END OF PERIOD .................................... $173,912,895 $184,857,401 $179,175,027
============ ============ ============
Undistributed net investment income ............................ $ -- $ -- $ --
============ ============ ============
CAPITAL SHARE TRANSACTIONS SHARES SHARES SHARES
------------ ------------ ------------
Sale of shares -- Investor Shares ......................... 796,812 2,003,255 5,036,141
Sale of shares -- Institutional Shares .................... 1,698,030 3,827,612 3,750,486
Reinvestment of distributions -- Investor Shares .......... -- 2,138 473,135
Reinvestment of distributions -- Institutional Shares ..... -- 1,254 --
Redemption of shares -- Investor Shares ................... (2,876,719) (5,278,702) (4,034,611)
Redemption of shares -- Institutional Shares .............. (1,316,498) (1,384,480) (234,095)
------------ ------------ ------------
Net increase (decrease) in shares ....................... (1,698,375) (828,923) 4,991,056
============ ============ ============
</TABLE>
+ Reflects operating history of predecessor mutual fund (see note 5).
(a) For the period October 1, 1998 through June 30, 1999.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES. THE CRM FUNDS
7
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
LARGE CAP VALUE FUND
-------------------------------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED
JUNE 30, JUNE 30, SEPTEMBER 30,
2000+ 1999(B)+ 1998(A)+
------------ ----------- -----------
<S> <C> <C> <C>
NET ASSETS -- BEGINNING OF PERIOD ................................. $ 30,935,706 $10,667,761 $ --
------------ ----------- -----------
OPERATIONS
Net investment income ........................................ 5,873 108,921 14,671
Net realized gain (loss) from investments .................... (972,764) 176,140 (23,760)
Net change in unrealized appreciation
(depreciation) of investments .............................. (2,227,093) 3,102,837 56,480
------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations ............................... (3,193,984) 3,387,898 47,391
------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
From investment income -- Investor Shares .................... (2,292) (121,068) --
From realized gain on investments -- Investor Shares ......... (140,234) (12,387) --
------------ ----------- -----------
Total distributions to shareholders ........................ (142,526) (133,455) --
------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares -- Investor Shares ............................ 2,617,238 23,136,247 10,620,370
Reinvestment of distributions -- Investor Shares ............. 138,957 133,426 --
Redemption of shares -- Investor Shares ...................... (22,414,018) (6,256,171) --
------------ ----------- -----------
Net increase (decrease) from capital share transactions .... (19,657,823) 17,013,502 10,620,370
------------ ----------- -----------
Total increase (decrease) in net assets .................... (22,994,333) 20,267,945 10,667,761
------------ ----------- -----------
NET ASSETS -- END OF PERIOD ....................................... $ 7,941,373 $30,935,706 $10,667,761
============ =========== ===========
Undistributed net investment income ............................... $ 5,844 $ 2,524 $ 14,671
============ =========== ===========
CAPITAL SHARE TRANSACTIONS SHARES SHARES SHARES
------------ ----------- -----------
Sale of shares -- Investor Shares ............................ 244,609 2,290,936 1,064,174
Reinvestment of distributions -- Investor Shares ............. 13,221 11,395 --
Redemption of shares -- Investor Shares ...................... (2,117,083) (824,142) --
------------ ----------- -----------
Net increase (decrease) in shares .......................... (1,859,253) 1,478,189 1,064,174
============ =========== ===========
</TABLE>
+ Reflects operating history of predecessor mutual fund (see note 5).
(a) For the period August 25, 1998 (commencement of operations) through
September 30, 1998.
(b) For the period October 1, 1998 through June 30, 1999.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES. THE CRM FUNDS
8
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
FINANCIAL HIGHLIGHTS
================================================================================
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD AND OTHER PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL
STATEMENTS. THEY SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND
NOTES THERETO.
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND
-------------------------------------------------------------------------
INVESTOR SHARES
-------------------------------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000+ 1999(B)+ 1998+ 1997+ 1996(A)+
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value -- Beginning of Period ..... $ 14.94 $ 13.61 $ 17.68 $ 13.71 $ 10.00
------- ------- ------- ------- -------
Investment operations
Net investment loss ................... (0.13) (0.02) (0.06) (0.06) (0.02)
Net realized and unrealized gain
(loss) on investments ............... 1.45 1.35 (3.15) 4.89 3.73
------- ------- ------- ------- -------
Total from investment operations ........... 1.32 1.33 (3.21) 4.83 3.71
------- ------- ------- ------- -------
Distributions to shareholders
From net investment income ............ -- -- -- -- --(c)
From net realized gain on investments . -- -- (0.84) (0.86) --
Return of capital ..................... -- --(c) (0.02) -- --
------- ------- ------- ------- -------
Total distributions to shareholders ........ -- -- (0.86) (0.86) --
------- ------- ------- ------- -------
Net asset value -- End of Period ........... $ 16.26 $ 14.94 $ 13.61 $ 17.68 $ 13.71
======= ======= ======= ======= =======
Total Return ............................... 8.84% 9.80%(d) (18.81)% 37.14% 37.15%
Ratios/Supplemental data Ratios to average net assets:
Expenses, including
reimbursement/waiver ................ 1.42%(f) 1.42%(e) 1.38% 1.50% 1.49%
Expenses, excluding
reimbursement/waiver ................ 1.42%(f) 1.46%(e) 1.38% 1.50% 1.98%
Net investment loss, including
reimbursement/waiver ................ (0.88)%(f) (0.16)%(e) (0.34)% (0.56)% (0.40)%
Portfolio turnover rate .................... 96%(f) 64% 57% 99% 111%
Net assets at end of period (000's omitted) $69,351 $94,806 $130,929 $144,001 $45,385
</TABLE>
+ Effective November 1, 1999, The CRM Funds - Small Cap Value Fund
("Predecessor Fund") was merged into the WT Mutual Fund - CRM Small Cap
Value Fund. The financial highlights for periods prior to November 1, 1999
reflect the performance of the Predecessor Fund.
(a) For the year October 1, 1995 (commencement of operations) through September
30, 1996.
(b) For the period October 1, 1998 through June 30, 1999.
(c) Less than $0.01 per share.
(d) Not Annualized.
(e) Annualized.
(f) Effective November 1, 1999, the ratios to average net assets include
expenses allocated from the WT Investment Trust I - Small Cap Value Series
(the "Series") and the portfolio turnover reflects the investment activity
of the Series.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES. THE CRM FUNDS
9
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
FINANCIAL HIGHLIGHTS
================================================================================
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD AND OTHER PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL
STATEMENTS. THEY SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND
NOTES THERETO.
<TABLE>
<CAPTION>
LARGE CAP VALUE FUND
-----------------------------------------------
INVESTOR SHARES
-----------------------------------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED
JUNE 30, JUNE 30, SEPTEMBER 30,
2000+ 1999(B)+ 1998(A)+
------ ------- -------
<S> <C> <C> <C>
Net asset value -- Beginning of Period .......................... $12.17 $ 10.02 $ 10.00
------ ------- -------
Investment operations
Net investment income ...................................... --(c) 0.06 0.01
Net realized and unrealized gain (loss) on investments ..... (0.37) 2.16 0.01
------ ------- -------
Total from investment operations ................................ (0.37) 2.22 0.02
------ ------- -------
Distributions to shareholders
From net investment income ................................. --(c) (0.06) --
From net realized gain on investments ...................... (0.17) (0.01) --
------ ------- -------
Total distributions to shareholders ............................. (0.17) (0.07) --
------ ------- -------
Net asset value -- End of Period ................................ $11.63 $ 12.17 $ 10.02
====== ======= =======
Total Return .................................................... (2.85)% 22.16%(d) 0.20%(d)
Ratios/Supplemental data Ratios to average net assets:
Expenses, including reimbursement/waiver ................... 1.44%(f) 1.50%(e) 1.50%(e)
Expenses, excluding reimbursement/waiver ................... 2.35%(f) 1.92%(e) 3.95%(e)
Net investment income, including reimbursement/waiver ...... 0.05%(f) 0.63%(e) 1.78%(e)
Portfolio turnover rate ......................................... 136%(f) 56% 7%
Net assets at end of period (000's omitted) ..................... $7,941 $30,936 $10,668
</TABLE>
+ Effective November 1, 1999, The CRM Funds - Large Cap Value Fund
("Predecessor Fund") was merged into the WT Mutual Fund - CRM Large Cap
Value Fund. The financial highlights for periods prior to November 1, 1999
reflect the performance of the Predecessor Fund.
(a) For the period August 25, 1998 (commencement of operations) through
September 30, 1998.
(b) For the period October 1, 1998 through June 30, 1999.
(c) Less than $0.01 per share.
(d) Not Annualized.
(e) Annualized.
(f) Effective November 1, 1999, the ratios to average net assets include
expenses allocated from the WT Investment Trust I - Large Cap Value Series
(the "Series") and the portfolio turnover reflects the investment activity
of the Series.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES. THE CRM FUNDS
10
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. DESCRIPTION OF THE FUND. CRM Small Cap Value Fund and CRM Large Cap Value
Fund (each a "Fund" and collectively the "Funds") are series of WT Mutual
Fund (the "Company"). The Company is registered under the Investment Company
Act of 1940 (the "1940 Act") as an open-end management investment company and
was organized as a Delaware business trust. The Declaration of Trust permits
the Trustees to establish additional series, each of which is a separate
class of shares. These financial statements and related notes pertain only to
the Funds. Information regarding other series of the Company are contained in
separate reports to their shareholders.
The Funds currently offer two classes of shares: Investor Shares and
Institutional Shares. Information regarding the Institutional Shares is
included in a separate shareholder report.
Unlike other investment companies which directly acquire and manage their own
portfolio of securities, each Fund (effective November 1, 1999) seeks to
achieve its investment objective by investing all of its investable assets in
a corresponding series of WT Investment Trust I (the "Series") having the
same investment objective, policies and limitations as the Fund. The
performance of each Fund is directly affected by the performance of its
corresponding Series. The financial statements of the Series, including their
Schedules of Investments, are included elsewhere in this report and should be
read in conjunction with the Funds' financial statements.
Information presented for periods prior to November 1, 1999, for the Funds
reflects the operating results of predecessor mutual funds (see Note 5).
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies of the Funds:
VALUATION OF INVESTMENT IN SERIES. Valuation of each Fund's investment in the
Series is based on the underlying securities held by the Series. Each Fund is
allocated its portion of the Series' securities market value based on its
ownership interest in the Series. Valuation of securities held by the Series
is discussed in the notes to the Series' financial statements.
FEDERAL INCOME TAXES. Each Fund is treated as a separate entity for Federal
income tax purposes and intends to continue qualifying as a "regulated
investment company" under Subchapter M of the Internal Revenue Code of 1986,
as amended, and to distribute all of its income to its shareholders.
Therefore, no Federal income tax provision is required.
CAPITAL LOSS CARRYFORWARDS. CRM Large Cap Value Fund had capital loss
carryforward of $956,378 which expires on June 30, 2008.
DEFERRED ORGANIZATION COSTS. Organization costs incurred by the Funds have
been deferred and are being amortized using the straight-line method over a
five-year period beginning on the date that each Fund commenced operations.
--------------------------------------------------------------------------------
THE CRM FUNDS
11
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
INVESTMENT INCOME. Each Fund records its share of the respective Series'
income, expenses and realized and unrealized gains and losses daily.
Additionally, each Fund records its own expenses as incurred. Investment
income, common expenses and realized and unrealized gain (loss) on
investments are allocated among each Fund's classes on the basis of daily net
assets of each class. Expenses relating to a specific class are charged
directly to that class.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders of the Funds are
declared and paid to shareholders annually.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation
of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
3. INVESTMENT SECURITIES TRANSACTIONS. During the period July 1, 1999 through
October 31, 1999, purchases and sales of investment securities (excluding
short-term investments) were as follows:
SMALL CAP VALUE LARGE CAP VALUE
FUND FUND
--------------- ---------------
Purchases ......................... $53,394,977 $ 2,532,156
Sales ............................. 58,603,258 17,891,605
During the period November 1, 1999 through June 30, 2000, contributions to
and withdrawals from the Series were as follows:
SMALL CAP VALUE LARGE CAP VALUE
FUND FUND
--------------- ---------------
Contributions ..................... $ 188,417,042 $ 12,332,006
Withdrawals ....................... (44,634,810) (5,829,611)
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. The investment adviser to the
Series is Cramer Rosenthal McGlynn, LLC ("CRM"). Advisory fees charged to the
Series are discussed in the notes to the Series' financial statements.
WT Funds' Board of Trustees has adopted a Shareholder Servicing Plan which
allows the Funds to obtain the services of CRM and other qualified financial
institutions to act as shareholder servicing agents for their customers.
Under this plan, the Funds pay shareholder servicing agents, including CRM up
to 0.25% of the average daily net assets of the Investor Share class of the
Small Cap Value Fund and Large Cap Value Fund attributable to accounts for
which they provide shareholder services.
PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank Corp., a
multi-bank holding company, provides administrative and accounting services
to the Funds.
--------------------------------------------------------------------------------
THE CRM FUNDS
12
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
================================================================================
PFPC also serves as transfer agent and dividend disbursing agent of the Funds
pursuant to a separate Transfer Agency Agreement with the Company on behalf
of the Funds.
CRM has agreed to reimburse certain Fund operating expenses (excluding taxes,
extraordinary expenses, brokerage commissions and interest) in an amount that
will limit annual operating expenses to not more than 1.50% of each Fund's
Investor Shares average daily net assets. These undertakings will remain in
place until the Board of Trustees approves its termination.
5. FUND MERGER. Effective November 1, 1999, the CRM Small Cap Value Fund and CRM
Large Cap Value Fund (the "CRM Funds") acquired all of the assets and assumed
all of the liabilities of the The CRM Funds - Small Cap Value Fund and The
CRM Funds - Large Cap Value Fund (the "Predecessor Funds"), respectively,
each an open-end management company, pursuant to separate Plans of
Reorganization (the "Reorganizations"). The shareholders of the Predecessor
Funds received shares of the respective Fund equal to the number and
aggregate net asset value of their shares in the Predecessor Funds.
The Reorganizations were treated as non-taxable events and accordingly the
CRM Funds' basis in the securities acquired reflected the historical cost
basis as of the date of transfer. The net assets and net unrealized
appreciation (depreciation) of the Predecessor Funds as of November 1, 1999
were as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
NET ASSETS APPRECIATION (DEPRECIATION)
------------ --------------------------
<S> <C> <C>
The CRM Funds - Small Cap Value Fund $158,932,951 $(2,022,593)
The CRM Funds - Large Cap Value Fund 10,404,693 44,276
</TABLE>
The Predecessor Funds' investment objectives, policies and limitations were
identical to those of the respective CRM Funds, which had no operations prior
to November 1, 1999. For financial reporting purposes the Predecessor Funds'
operating histories prior to the acquisitions are reflected in the respective
financial statements and financial highlights of the CRM Funds.
--------------------------------------------------------------------------------
THE CRM FUNDS
13
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
================================================================================
REPORT OF ERNST &YOUNG LLP, INDEPENDENT AUDITORS
To the Shareholders and Trustees of WT Mutual Fund:
We have audited the accompanying statements of assets and liabilities of WT
Mutual Fund (Small Cap Value and Large Cap Value Funds) (the "Funds") as of June
30, 2000, and the related statements of operations for the year then ended and
the statements of changes in net assets and financial highlights for each of the
periods indicated therein. These financial statements and financial highlights
are the responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds at June 30, 2000, the results of their operations for
the year then ended and the changes in their net assets and their financial
highlights for each of the periods indicated therein, in conformity with
accounting principles generally accepted in the United States.
/S/ ERNST &YOUNG LLP SIGNATURE
Philadelphia, Pennsylvania
August 4, 2000
--------------------------------------------------------------------------------
THE CRM FUNDS
14
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
TAX INFORMATION (UNAUDITED)
================================================================================
By now shareholders to whom year-end tax reporting is required by the IRS should
have received their Form 1099-DIV from their respective Portfolio.
For corporate shareholders, 100% of the ordinary income distribution (dividend
income plus short-term gains, if any) for CRM Large Cap Value Fund qualifies for
the dividends-received deduction.
--------------------------------------------------------------------------------
THE CRM FUNDS
15
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
SMALL CAP VALUE SERIES
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
================================================================================
SECURITY
SHARES DESCRIPTION VALUE
------------ --------------------------- ------------
COMMON STOCK (94.4%)
AIRCRAFT & AEROSPACE (0.3%)
24,800 Teledyne
Technologies Inc.* ..... $ 458,800
------------
AMUSEMENT & RECREATION (4.4%)
644,600 Trans World
Entertainment Corp.* ... 7,815,775
------------
COMMERCIAL BANKS, NEC (0.3%)
21,700 Hudson United Bancorp .... 486,894
------------
COMPUTER SERVICES (7.5%)
103,000 Complete Business
Solutions, Inc.* ....... 1,808,937
202,900 Computer Horizons Corp.* . 2,726,469
89,800 Great Plains Software, Inc.* 1,762,325
14,800 Symantec Corp.* .......... 798,275
241,300 Systems & Computer
Technology Corp.* ...... 4,826,000
139,600 Trident Microsystems, Inc.* 1,256,400
------------
13,178,406
------------
ELECTRONIC, GAS & WATER UTILITIES (0.6%)
71,100 Western Resources, Inc. .. 1,102,050
------------
ELECTRONIC COMPONENTS (4.4%)
222,250 Artesyn Technologies, Inc.* 6,181,328
79,500 Thomas & Betts Corp. ..... 1,520,437
------------
7,701,765
------------
ELECTRONIC TECHNOLOGY (2.6%)
104,800 Zebra Technologies Class A* 4,643,950
------------
FINANCE & INSURANCE (8.2%)
246,200 AmeriCredit Corp.* ....... 4,185,400
453,000 Bay View Capital Corp. ... 4,445,062
116,600 Community First
Bankshares, Inc. ....... 1,902,037
210,000 Richmond County
Financial Corp. ........ 4,016,250
------------
14,548,749
------------
FOOD AND BEVERAGE (2.6%)
215,500 International Home
Foods, Inc.* ........... 4,512,031
------------
SECURITY
SHARES DESCRIPTION VALUE
------------ --------------------------- ------------
HOSPITAL & MEDICAL SERVICE PLANS (2.8%)
148,400 First Health Group Corp. * $ 4,869,375
------------
HOTELS, OTHER LODGING PLACES (2.7%)
509,900 Prime Hospitality Corp.* . 4,812,181
------------
INSURANCE CARRIERS (3.1%)
165,200 Everest Re Group, Ltd. ... 5,430,950
------------
INVESTMENT ADVICE (1.1%)
45,300 Affiliated Managers
Group, Inc.* ........... 2,004,525
------------
MANUFACTURING (16.3%)
CHEMICAL & ALLIED PRODUCTS (1.5%)
124,400 Arch Chemicals, Inc. ..... 2,721,250
------------
CONSUMER PRODUCTS (4.0%)
354,200 Central Garden & Pet Co.* 3,176,731
350,000 Playtex Products, Inc.* .. 3,959,375
------------
7,136,106
------------
ELECTRICAL EQUIPMENT (1.0%)
74,300 EMCOR Group, Inc. ........ 1,722,831
------------
ELECTRONIC COMPONENTS (2.6%)
109,600 Oak Technology, Inc.* .... 2,363,250
78,700 OPTI, Inc.* .............. 403,338
24,100 Tektronix, Inc. .......... 1,753,275
------------
4,519,863
------------
IRON & STEEL (0.9%)
284,800 WHX Corp.* ............... 1,566,400
------------
MACHINERY & HEAVY EQUIPMENT (1.6%)
205,100 Terex Corp.* ............. 2,897,038
------------
MEDICAL PRODUCTS (0.0%)
500 Edwards Lifesciences Corp.* 9,563
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (1.6%)
202,700 D.R. Horton, Inc. ........ 2,749,119
------------
NONFERROUS METALS (0.8%)
123,600 Mascotech, Inc. .......... 1,336,425
------------
PRECISION INSTRUMENTS & MEDICAL (1.7%)
116,100 CONMED Corp.* ............ 3,004,088
------------
* Non-income producing security.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES.
16
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
SMALL CAP VALUE SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000
================================================================================
SECURITY
SHARES DESCRIPTION VALUE
------------ --------------------------- ------------
MANUFACTURING (CONTINUED)
TELECOMMUNICATIONS EQUIPMENT (0.6%)
59,100 Allen Telecom, Inc.* ..... $ 1,045,331
------------
28,708,014
------------
OIL & GAS EXPLORATION (5.0%)
787,100 Gulf Canada Resources, Ltd. 3,787,919
269,100 Nuevo Energy Co.* ........ 5,079,263
------------
8,867,182
------------
REAL ESTATE INVESTMENT TRUSTS (3.1%)
1,691,900 Ventas, Inc.* ............ 5,392,931
------------
RETAIL (4.8%)
COMPUTER & ELECTRONICS (0.4%)
64,800 Intertan, Inc.* .......... 761,400
------------
MERCHANDISING (1.5%)
429,800 Flooring America, Inc. ... 42,980
305,200 United Retail Group, Inc.* 2,594,200
------------
2,637,180
------------
TEXTILES & APPAREL (2.9%)
330,000 Quicksilver, Inc.* ....... 5,135,625
------------
8,534,205
------------
RETAIL APPAREL & ACCESSORY STORES (1.1%)
93,300 Children's Place Retail
Stores, Inc.* .......... 1,912,650
------------
SERVICES (17.5%)
ADVERTISING (4.2%)
380,000 R.H. Donnelley Corp.* .... 7,362,500
------------
BUSINESS SERVICES (3.9%)
164,400 ChoicePoint, Inc.* ....... 6,884,250
------------
COMMERCIAL & CONSUMER SERVICES (3.8%)
181,000 Primark Corp.* ........... 6,742,250
------------
DETECTIVE, GUARD, & ARMORED CAR SERVICES (2.7%)
376,100 Burns International
Services Corp.* ........ 4,701,250
------------
SECURITY
SHARES DESCRIPTION VALUE
------------ --------------------------- ------------
SERVICES (CONTINUED)
MEDICAL & HEALTH SERVICES (0.4%)
317,900 QuadraMed Corp.* ......... $ 794,750
------------
SANITARY SERVICES (2.5%)
411,793 Casella Waste Systems, Inc.* 4,426,775
------------
30,911,775
------------
SERVICES-COMPUTER SOFTWARE (0.6%)
207,700 Inso Corporation* ........ 1,077,444
------------
TRANSPORTATION (5.4%)
112,800 Circle International
Group, Inc. ............ 2,834,100
117,200 GATX Corp. ............... 3,984,800
426,800 RailAmerica, Inc.* ....... 2,720,850
------------
9,539,750
------------
TOTAL COMMON STOCK
(COST $160,460,843) ................ 166,509,402
------------
SHORT-TERM INVESTMENTS (3.3%)
5,922,308 Sansom Street Fund -
Money Market Portfolio
(COST $5,922,308) ...... 5,922,308
------------
PAR
-----------
U.S. TREASURY BILLS (2.3%)
$3,000,000 U.S. Treasury Bills
5.350%, 07/13/00 ....... 2,994,650
1,000,000 U.S. Treasury Bills
5.320%, 07/20/00 ....... 997,192
------------
TOTAL U.S. TREASURY BILLS
(COST $3,991,842) .................. 3,991,842
------------
TOTAL INVESTMENTS (100.0%)
(COST $170,374,993)+ ............... $176,423,552
============
* Non-income producing security.
+ The cost for Federal income tax purposes was $170,697,760. At June 30, 2000,
net unrealized appreciation was $5,725,792. This consisted of aggregate gross
unrealized appreciation for all securities for which there was an excess of
market value over tax cost of $29,621,978, and aggregate gross unrealized
depreciation for all securities for which there was an excess of tax cost
over market value of $23,896,186.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES.
17
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
LARGE CAP VALUE SERIES
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
================================================================================
SECURITY
SHARES DESCRIPTION VALUE
------------ --------------------------- ------------
COMMON STOCK (94.7%)
COMMUNICATION & BROADCASTING (8.9%)
16,400 Cablevision Systems Corp.
Class A* ................. $ 1,113,150
7,800 General Motors Corp., Class H* 684,450
31,400 MediaOne Group, Inc.* ...... 2,092,025
43,000 News Corp. Ltd. ............ 2,042,500
6,835 Viacom, Inc. (B Shares)* ... 466,062
-----------
6,398,187
-----------
COMPUTER SERVICES (3.7%)
28,200 BMC Software, Inc.* ........ 1,028,859
33,000 Ceridian Corp.* ............ 794,062
9,300 Oracle Corp.* .............. 781,781
-----------
2,604,702
-----------
ELECTRIC, GAS & WATER UTILITIES (3.1%)
14,900 Duke Energy Corp. .......... 839,987
34,000 PECO Energy Co. ............ 1,370,625
-----------
2,210,612
-----------
FINANCE & INSURANCE (18.7%)
FINANCIAL SERVICES (4.6%)
47,200 Associates First Capital Corp.
(A shares) ............... 1,053,150
14,100 First Data Corp. ........... 699,712
8,500 Marsh & McLennan Cos., Inc. 887,719
24,400 Washington Mutual, Inc. .... 704,550
-----------
3,345,131
-----------
INSURANCE CARRIERS (9.6%)
27,400 Ace Ltd. ................... 767,200
13,600 American International
Group, Inc. .............. 1,598,000
30,800 Hartford Financial Services
Group, Inc. .............. 1,722,875
11,100 Jefferson-Pilot Corp. ...... 626,456
42,100 Reliastar Financial Corp. .. 2,207,619
-----------
6,922,150
-----------
SECURITY
SHARES DESCRIPTION VALUE
------------ --------------------------- ------------
FINANCE & INSURANCE (CONTINUED)
SECURITY & COMMODITY BROKERS, DEALERS & SERVICES (4.5%)
24,255 Bear Stearns Companies, Inc. $ 1,009,614
23,850 Citigroup, Inc. ............ 1,436,962
6,800 Merrill Lynch & Co., Inc. .. 782,000
-----------
3,228,576
-----------
13,495,857
-----------
MANUFACTURING (38.2%)
AIRCRAFT & AEROSPACE (2.2%)
27,200 Boeing Co. ................. 1,137,300
6,400 Northrop Grumman Corp. ..... 424,000
-----------
1,561,300
-----------
COMPUTERS & OFFICE EQUIPMENT (9.6%)
18,900 Cisco Systems, Inc.* ....... 1,201,331
23,400 Compaq Computer Corp. ...... 598,162
6,100 Hewlett-Packard Co. ........ 761,737
10,800 Intel Corp. ................ 1,443,825
9,600 International Business Machines
Corp. .................... 1,051,800
14,400 Microsoft Corp.* ........... 1,152,000
33,700 Xerox Corp. ................ 674,000
-----------
6,882,855
-----------
CONSUMER PRODUCTS (4.7%)
18,800 American Home Products Corp. 1,104,500
28,800 Fortune Brands, Inc. ....... 664,200
31,200 General Electric Co. ....... 1,591,200
-----------
3,359,900
-----------
ELECTRONICS (3.0%)
3,585 Agilent Technologies, Inc.* 264,394
22,500 Koninklijke (Royal) Philips
Electronics .............. 1,068,750
15,400 L-3 Communications Holdings,
Inc.* .................... 878,762
-----------
2,211,906
-----------
* Non-income producing security.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES.
18
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
LARGE CAP VALUE SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000
================================================================================
SECURITY
SHARES DESCRIPTION VALUE
------------ --------------------------- ------------
MANUFACTURING (CONTINUED)
FOOD AND BEVERAGE (1.2%)
19,200 PepsiCo, Inc. .............. $ 853,200
-----------
MISCELLANEOUS INDUSTRIAL MACHINERY &
EQUIPMENT (0.9%)
17,100 Deere & Co. ................ 632,700
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES (4.2%)
19,600 Alcoa, Inc. ................ 568,400
20,200 International Flavors &
Fragrances, Inc. ......... 609,788
16,300 Minnesota Mining &
Manufacturing Co. ......... 1,344,750
11,200 PPG Industries, Inc. ....... 496,300
-----------
3,019,238
-----------
PHARMACEUTICAL PREPARATIONS (3.1%)
18,000 Abbott Laboratories ........ 802,125
6,600 Bristol-Meyers Squibb Co. .. 384,450
13,800 Merck & Co., Inc. .......... 1,057,425
-----------
2,244,000
-----------
PLUMBING FIXTURES & HEATING EQUIPMENT (1.3%)
53,000 Masco Corp. ................ 957,313
-----------
PRECISION INSTRUMENTS & MEDICAL SUPPLIES (1.1%)
16,100 C.R. Bard, Inc. ............ 774,813
-----------
TELECOMMUNICATIONS EQUIPMENT (5.7%)
22,000 GTE Corp. .................. 1,369,500
10,800 Lucent Technologies, Inc. .. 639,900
24,200 Motorola, Inc. ............. 703,313
30,505 Worldcom, Inc.* ............ 1,399,417
-----------
4,112,130
-----------
TOBACCO (1.2%)
34,300 Philip Morris Cos., Inc. ... 911,094
-----------
27,520,449
-----------
MINING (0.6%)
21,400 Newmont Mining Corp. ....... 462,775
-----------
SECURITY
SHARES DESCRIPTION VALUE
------------ --------------------------- ------------
OIL & GAS (5.5%)
18,200 Enron Corp. ................ $ 1,173,900
17,686 Exxon Mobil Corp. .......... 1,389,456
16,600 Halliburton Co. ............ 783,313
8,600 Schlumberger Ltd. .......... 641,775
-----------
3,988,444
-----------
PAPER & PAPER PRODUCTS (0.8%)
23,000 Georgia-Pacific Corp. ...... 603,750
-----------
SERVICES (11.6%)
AMUSEMENT & RECREATIONAL SERVICES (2.2%)
40,300 The Walt Disney Co. ........ 1,564,144
-----------
BUSINESS SERVICES (6.3%)
56,300 Cendant Corp.* ............. 788,200
15,400 H & R Block, Inc. .......... 498,575
35,500 Harcourt General, Inc. ..... 1,930,313
24,700 McGraw-Hill Cos., Inc. ..... 1,333,800
-----------
4,550,888
-----------
HOTELS, OTHER LODGING PLACES (2.1%)
45,700 Starwood Hotels & Resorts
Worldwide, Inc. .......... 1,476,681
-----------
MEDICAL & HEALTH SERVICES (1.0%)
41,600 IMS Health, Inc.* .......... 748,800
-----------
8,340,513
-----------
WHOLESALE & RETAIL TRADE (3.6%)
MISCELLANEOUS RETAIL STORES (1.4%)
18,000 Wal-Mart Stores, Inc. ...... 1,037,250
-----------
RETAIL BUILDING MATERIAL (1.0%)
13,200 Home Depot, Inc. ........... 659,175
-----------
RETAIL FOOD STORES (1.2%)
19,100 Safeway, Inc.* ............. 861,888
-----------
2,558,313
-----------
TOTAL COMMON STOCK
(COST $60,087,548) ................... 68,183,602
-----------
* Non-income producing security.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES.
19
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
LARGE CAP VALUE SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000
================================================================================
SECURITY
PAR DESCRIPTION VALUE
------------ --------------------------- ------------
SHORT-TERM INVESTMENTS (3.1%)
$2,227,993 Sansom Street Fund -
Money Market Portfolio
(COST $2,227,993) ........ $ 2,227,993
-----------
U.S. TREASURY BILLS (2.2%)
1,000,000 U.S. Treasury Bills
5.350%, 07/13/00 ......... 998,217
600,000 U.S. Treasury Bills
5.320%, 07/20/00 ......... 598,315
-----------
TOTAL U.S. TREASURY BILLS
(COST $1,596,532) .................... 1,596,532
-----------
TOTAL INVESTMENTS (100.0%)
(COST $63,912,073)+ .................. $72,008,127
===========
* Non-income producing security.
+ The cost for Federal income tax purposes was $63,928,459. At June 30, 2000,
net unrealized appreciation was $8,079,668. This consisted of aggregate gross
unrealized appreciation for all securities for which there was an excess of
market value over tax cost of $11,370,699 and aggregate gross unrealized
depreciation for all securities for which there was an excess of tax cost
over market value of $3,291,031.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES.
20
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
================================================================================
SMALL CAP LARGE CAP
VALUE SERIES VALUE SERIES
------------ ------------
ASSETS
Investments
Investments, at cost ................... $170,374,993 $63,912,073
Net unrealized appreciation ............ 6,048,559 8,096,054
------------ -----------
Total investments, at value .............. 176,423,552 72,008,127
Receivable for securities sold ........... 1,887,333 251,389
Receivable for Contributions ............. 42,043 55,254
Interest and dividends receivable ........ 31,971 95,423
------------ -----------
Total assets .................................. 178,384,899 72,410,193
------------ -----------
LIABILITIES
Payable for securities purchased ......... 4,034,114 133,812
Payable for Withdrawals .................. 226,954 --
Accrued management fee ................... 105,294 32,731
Accrued expenses and other liabilites .... 21,151 14,722
------------ -----------
Total liabilities ............................. 4,387,513 181,265
------------ -----------
NET ASSETS .................................... $173,997,386 $72,228,928
============ ===========
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES.
21
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
STATEMENTS OF OPERATIONS
FOR THE PERIOD NOVEMBER 1, 1999(A) THROUGH JUNE 30, 2000
================================================================================
SMALL CAP LARGE CAP
VALUE SERIES VALUE SERIES
------------ ------------
INVESTMENT INCOME
Dividends ................................... $ 425,924 $ 609,550
Interest .................................... 191,839 88,870
----------- -----------
Total investment income .......................... 617,763 698,420
----------- -----------
EXPENSES
Investment advisory fees .................... 840,552 252,921
Administration fees ......................... 112,074 45,986
Accounting services ......................... 9,906 8,807
Custody fees ................................ 8,228 8,070
Trustee fees and expenses ................... 3,959 3,960
----------- -----------
Total expenses ................................... 974,719 319,744
----------- -----------
NET INVESTMENT INCOME (LOSS) ..................... (356,956) 378,676
----------- -----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain from investments .......... 22,488,958 5,143,515
Net change in unrealized appreciation
(depreciation) of investments ............. 8,071,152 6,386,560
----------- -----------
Net realized and unrealized gain on investments .. 30,560,110 11,530,075
----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $30,203,154 $11,908,751
=========== ===========
(a) Commencement of operations.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES.
22
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
SMALL CAP LARGE CAP
VALUE SERIES VALUE SERIES
------------ -------------
PERIOD ENDED PERIOD ENDED
JUNE 30, JUNE 30,
2000(A) 2000(A)
------------ ------------
NET ASSETS -- BEGINNING OF PERIOD ............... $ -- $ --
------------ ------------
OPERATIONS
Net investment gain (loss) ................. (356,956) 378,676
Net realized gain from investments ......... 22,488,958 5,143,515
Net change in unrealized appreciation
(depreciation) of investments ............ 8,071,152 6,386,560
------------ ------------
Net increase in net assets resulting
from operations .......................... 30,203,154 11,908,751
------------ ------------
TRANSACTIONS IN BENEFICIAL INTEREST
Contributions .............................. 188,418,042 79,403,657
Withdrawals ................................ (44,623,810) (19,083,480)
------------ ------------
Net increase in net assets resulting from
transactions in beneficial interests .. 143,794,232 60,320,177
------------ ------------
Total increase in net assets ............. 173,997,386 72,228,928
------------ ------------
NET ASSETS -- END OF PERIOD ..................... $173,997,386 $ 72,228,928
============ ============
(a) For the period November 1, 1999 (commencement of operations) through
June 30, 2000.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES.
23
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. DESCRIPTION OF THE TRUST. Small Cap Value Series and Large Cap Value Series
(the "Series") are series of WT Investment Trust I (the "Trust"). The Trust
is registered under the Investment Company Act of 1940 (the "1940 Act") as an
open-end management investment company and was organized as a Delaware
business trust. The Declaration of Trust permits the Trustees to establish
additional series, each of which is a separate class of shares. These
financial statements and related notes pertain only to the Series.
Information regarding other series of the Trust are contained in separate
reports to their investors.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies of the Series:
SECURITY VALUATION. Securities held by the Series which are listed on a
securities exchange and for which market quotations are available are valued
at the last quoted sale price of the day, or, if there is no such reported
sale, securities are valued at the mean between the most recent quoted bid
and ask prices. Price information for listed securities is taken from the
exchange where the security is primarily traded. Unlisted securities for
which market quotations are readily available are valued at the most recent
bid prices. Securities with a remaining maturity of 60 days or less are
valued at amortized cost, which approximates market value, unless the Trust's
Board of Trustees determines that this does not represent fair value.
FEDERAL INCOME TAXES. Each Series is treated as a partnership entity for
Federal income tax purposes. Any interest, dividends and gains or losses of
the Series will be deemed to have been "passed through" to each partner.
Accordingly, no tax provision is recorded for the Series.
INVESTMENT INCOME. All of the net investment income (loss) and realized and
unrealized gains and losses from security transactions are allocated pro rata
among the investors in the Series on a daily basis.
OTHER. Investment security transactions are accounted for on a trade date
basis. Each Series uses the specific identification method for determining
realized gain and loss on investments for both financial and Federal income
tax reporting purposes. Common expenses of the Trust are allocated on a pro
rata basis among the series based on relative net assets.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation
of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
--------------------------------------------------------------------------------
24
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
================================================================================
3. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES. Cramer Rosenthal
McGlynn, LLC ("CRM") serves as investment adviser to the Series. For its
services, the adviser receives a fee from Small Cap Value Series as follows:
.75% up to $1 billion; .70% of next $1 billion; and .65% in excess of $2
billion of the average daily net assets of the Series. For its services to
Large Cap Value Series, the advisor receives a fee as follows: .55% up to $1
billion; .50% of the next $1 billion; and .45% in excess of $2 billion of the
average daily net assets of the Series.
CRM has agreed to waive its fees or reimburse certain operating expenses of
the Series (excluding taxes, extraordinary expenses, brokerage commissions
and interest) in an amount that will limit annual operating expenses to not
more than 1.50% of average daily net assets of each Series. These
undertakings will remain in place until the Board of Trustees approves its
termination.
PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank Corp., a
multi-bank holding company, provides administrative and accounting services
to the Trust.
Wilmington Trust Company serves as custodian and PFPC Trust Company serves as
sub-custodian to the Series.
4. INVESTMENT SECURITIES TRANSACTIONS. During the period ended June 30, 2000,
purchases and sales of investment securities transactions (excluding
short-term investments) are as follows:
Small CAP LARGE CAP
VALUE VALUE
SERIES(1) SERIES(1)
------------ -----------
Purchases .................................. $107,290,043 $73,276,160
Sales ...................................... 130,463,244 84,261,572
5. FINANCIAL HIGHLIGHTS.
Small CAP LARGE CAP
VALUE VALUE
SERIES(1) SERIES(1)
------------ -----------
Total Return** ............................. 19.70% 18.70%
Ratios to average net assets:
Expenses* ............................... 0.87% 0.69%
Net investment income (loss)* ........... (0.32)% 0.82%
Portfolio Turnover Rate .................... 65% 110%
1 For the period November 1, 1999 (commencement of operations) through June 30,
2000.
* Annualized.
** Not annualized.
--------------------------------------------------------------------------------
25
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
================================================================================
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Beneficial Interest Holders and Trustees of WT Investment Trust I:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of WT Investment Trust I (Small Cap Value and
Large Cap Value Series) (the "Series") as of June 30, 2000, and the related
statements of operations and statements of changes in net assets for the period
November 1, 1999 (commencement of operations) through June 30, 2000. These
financial statements are the responsibility of the Series' management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of June 30, 2000, by
correspondence with the Series' custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective Series
at June 30, 2000, and the results of their operations and the changes in their
net assets for the period November 1, 1999 (commencement of operations) through
June 30, 2000, in conformity with accounting principles generally accepted in
the United States.
/S/ ERNST &YOUNG LLP SIGNATURE
Philadelphia,Pennsylvania
August 4, 2000
--------------------------------------------------------------------------------
THE CRM FUNDS
26
<PAGE>
(This page has been intentionally left blank.)
<PAGE>
========================================
TRUSTEES
Robert H. Arnold
Eric Brucker
Robert J. Christian
Nicholas A. Giordano
Louis Klein, Jr.
Clement C. Moore, II
John J. Quindlen
William P. Richards
INVESTMENT ADVISER
Cramer Rosenthal McGlynn, LLC
707 Westchester Avenue
White Plains, NY 10604
ADMINISTRATOR
PFPC Inc
400 Bellevue Parkway
Wilmington, DE 19809
LEGAL COUNSEL
Pepper Hamilton LLP
INDEPENDENT AUDITORS
Ernst & Young LLP
INVESTOR INFORMATION: (800) CRM-2883
HTTP://WWW.CRMFUNDS.COM
THIS REPORT IS AUTHORIZED FOR DISTRIBUTION
ONLY TO SHAREHOLDERS AND TO OTHERS
WHO HAVE RECEIVED CURRENT PROSPECTUSES
OF THE CRM FUNDS.
CRMINVA/R
========================================
========================================
[GRAPHIC OF CRM FUNDS LOGO OMITTED]
SMALL CAP
VALUE FUND
LARGE CAP
VALUE FUND
Investor Shares
ANNUAL REPORT
June 30, 2000
[GRAPHIC OMITTED]
========================================
