=================================================
CRM
FUNDS
SMALL CAP
VALUE FUND
MID CAP
VALUE FUND
Institutional Shares
ANNUAL REPORT
June 30, 2000
[GRAPHIC OMITTED]
-------------------------------------------------
<PAGE>
THE CRM FUNDS
================================================================================
FUND AND SHAREHOLDER ACCOUNT INFORMATION:
PFPC, Inc.
P.O. Box 8742
Wilmington, DE 19899
(800) CRM-2883
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ANNUAL REPORT June 30, 2000
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Dear Fellow Shareholder:
For the twelve month period ending June 30, 2000 Institutional Shares of CRM
Small Cap Value Fund and CRM Mid Cap Value Fund provided total returns of 9.13%
and 19.30%, respectively. These results compare to 14.32% and 12.64% returns for
the Russell 2000 Index and Russell Mid Cap 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.
CRM Mid Cap Value Fund has recently benefited from strong performance in a
number of areas. We have been focusing on non-bank financials, particularly
insurance companies, for the last few quarters. Our thesis has been predicated
on consolidation in the life insurance industry and better pricing in commercial
property and casualty insurance. Our largest position during the first half of
this year has been Reliastar, who agreed to be acquired by ING for $54/share in
cash. The stock began the year at approximately $39/share and we substantially
added to our
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1
THE CRM FUNDS
<PAGE>
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holdings during the first quarter in the low $30's. We added to our position in
Ace Ltd. during the quarter, and the stock was a strong contributor as investors
have begun to recognize the change in commercial insurance fundamentals. Another
area of focus has been educational publishing. Harcourt General and others will
benefit from a few years of strong book adoptions in California, Texas and
Florida. Other states are also expected to increase their spending on
educational materials, as it is both politically popular and a means of
deploying some state budget surpluses. Last month, Harcourt announced that they
had retained Goldman Sachs to find a buyer for the company, as the controlling
family decided to take advantage of this robust period. Although the stock
appreciated by 45% during the quarter, we estimate the private market value to
be 20-30% higher from this level. We are therefore maintaining our holdings for
the time being. The sale process for Nabisco highlighted the under-valuation of
Keebler Foods, which appreciated by 30% during the quarter. Another strong
performer included a medical device company. Edwards Lifesciences was recently
spun-off from Baxter International. In spite of being a market leader in the
highly profitable tissue heart valve market, the stock was selling at a large
discount to its peers (11x cash earnings versus 20-40x for the peer group), as
it was not well understood by the market. The recent sale of a money-losing
developmental product line has helped to draw attention to the company.
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.
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2
THE CRM FUNDS
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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 Institutional 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 1/27/98. 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 securites of the 2,000 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-Institutional
Shares $10,316
Russell 2000 Index $12,590
Russell 2000 Value Index $ 9,933
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN A/O: 6/30/00 ONE YEAR SINCE INCEPTION ON 1/27/98
---------------------------------------- -------- --------------------------
<S> <C> <C>
CRM Small Cap Value Fund-Institutional Shares 9.13% 1.29%**
Russell 2000 Index 14.32% 10.01%
Russell 2000 Value Index (0.94)% (0.28)%
[GRAPH OMITTED, PLOT POINTS AS FOLLOWS:]
<S> <C> <C> <C>
CRM Small Cap Value Fund-Institutional Shares Russell 2000 Index Russell 2000 Value Index
01/27/98 10000 10000 10000
06/30/98 10983 10850 10636
06/30/99 9342 11013 10028
06/30/00 10316 12590 9933
<FN>
* Average annual returns for the Russell 2000 Index and Russell 2000 Value
Index are based on an inception date of 1/31/98. 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.
</FN>
</TABLE>
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THE CRM FUNDS
3
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CRM MID 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 Institutional Shares of the CRM Mid Cap Value Fund ("Fund") with the
performance of the Russell MidCap Index and Russell MidCap Value Index since
inception on 1/6/98. The Russell MidCap Index measures the performance of 800 of
the smallest securities in the Russell 1000 Index, which is an unmanaged
capitalization weighted index of 1000 large capitalization U.S. companies. The
Russell MidCap Value Index consists of 619 securities of the 800 securities in
the Russell MidCap Index with lower price-to-book ratios and lower forecasted
growth values. The index returns reflect 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 MID CAP VALUE FUND VS RUSSELL MIDCAP INDEX AND RUSSELL MIDCAP VALUE INDEX
INVESTMENT VALUE ON 6/30/00
---------------------------
CRM Mid Cap Value Fund-Institutional Shares $13,395
Russell MidCap Index $13,683
Russell MidCap Value Index $10,424
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN A/O: 6/30/00 ONE YEAR SINCE INCEPTION ON 1/6/98
---------------------------------------- -------- -------------------------
<S> <C> <C>
CRM Mid Cap Value Fund-Institutional Shares 19.30%** 12.48%**
Russell MidCap Index 12.64% 13.56%
Russell MidCap Value Index (7.91)% 1.70%
[GRAPH OMITTED, PLOT POINTS AS FOLLOWS]
<S> <C> <C> <C>
CRM MidCap Value Fund-Institutional Shares Russell MidCap Index Russell MidCap Value Index
01/06/98 10000 10000 10000
06/30/98 10970 10913 10716
06/30/99 11228 12147 11319
06/30/00 13395 13683 10424
<FN>
* Average annual returns for the Russell MidCap Index and Russell MidCap Value
Index are based on an inception date of 12/31/97. 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.
</FN>
</TABLE>
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THE CRM FUNDS
4
<PAGE>
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THE CRM FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
================================================================================
<TABLE>
<CAPTION>
SMALL CAP MID CAP
VALUE FUND VALUE FUND
------------ ------------
<S> <C> <C> <C>
ASSETS
Investments in Series, at value .......................... $173,996,188 $18,549,481
Receivable for Fund shares sold .......................... 42,043 --
Receivable for investment in Series withdrawn ............ 226,954 --
Receivable from Investment Advisor ....................... -- 1,783
Organizational costs (Note 2) ............................ 4,382 15,000
Other assets ............................................. 33,790 12,526
------------ -----------
Total assets ............................................. 174,303,357 18,578,790
------------ -----------
LIABILITIES
Payable for Fund shares redeemed ......................... 226,954 --
Payable for investment in Series ......................... 42,043 --
Accrued expenses and other liabilites .................... 121,465 5,759
------------ -----------
Total liabilities ........................................ 390,462 5,759
------------ -----------
NET ASSETS .................................................... $173,912,895 $18,573,031
============ ===========
COMPONENTS OF NET ASSETS
Paid in Capital .......................................... $162,227,757 $16,173,388
Undistributed net investment income ...................... -- 45,154
Accumulated net realized gain ............................ 5,636,621 890,213
Net unrealized appreciation on investments ............... 6,048,517 1,464,276
------------ -----------
NET ASSETS .................................................... $173,912,895 $18,573,031
============ ===========
NET ASSETS BY SHARE CLASS
Investor Shares .......................................... $ 69,351,015 $ --
Institutional Shares ..................................... 104,561,880 18,573,031
------------ -----------
$173,912,895 $18,573,031
============ ===========
SHARES OF BENEFICIAL INTEREST OUTSTANDING
($0.01 par value, unlimited authorized shares)
Investor Shares .......................................... 4,264,430 --
Institutional Shares ..................................... 6,342,309 1,402,263
NET ASSET VALUE (OFFERING PRICE AND
REDEMPTION PRICE) PER SHARE
Investor Shares .......................................... $16.26 --
Institutional Shares ..................................... $16.49 $13.25
</TABLE>
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SEE ACCOMPANYING NOTES. THE CRM FUNDS
5
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THE CRM FUNDS
STATEMENTS OF OPERATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
================================================================================
<TABLE>
<CAPTION>
SMALL CAP MID CAP
VALUE FUND+ VALUE FUND+
------------- -------------
<S> <C> <C>
INVESTMENT INCOME
Investment income from Series ............................ $ 617,759 $ 133,116
Expenses from Series ..................................... (974,713) (90,086)
------------ -----------
Net investment income (loss) from Series ............... (356,954) 43,030
Dividends ................................................ 233,900 38,853
Interest ................................................. 41,219 23,198
------------ -----------
Total investment income (loss) ................................ (81,835) 105,081
------------ -----------
EXPENSES
Investment advisory fees ................................. 437,279 30,148
Shareholder services--Investor Shares .................... 195,045 --
Administration fees ...................................... 76,773 30,029
Transfer agent services .................................. 122,937 24,845
Professional services .................................... 58,139 15,328
Registration fees ........................................ 66,140 31,547
Accounting services ...................................... 42,116 24,099
Custody fees ............................................. 9,283 7,241
Trustee fees and expenses ................................ 3,190 3,763
Amortization of organizational costs ..................... 17,346 6,081
Printing ................................................. 58,334 3,801
Miscellaneous ............................................ 17,369 3,271
------------ -----------
Total expenses ................................................ 1,103,951 180,153
Expenses reimbursed and fees waived (Note 4) ............. -- (129,279)
------------ -----------
Net expenses .................................................. 1,103,951 50,874
------------ -----------
NET INVESTMENT INCOME (LOSS) .................................. (1,185,786) 54,207
------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain from investments ....................... 34,576,089 1,394,272
Net change in unrealized appreciation (depreciation)
of investments ......................................... (19,368,774) 620,737
------------ -----------
Net realized and unrealized gain on investments ............... 15,207,315 2,015,009
------------ -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ................................... $ 14,021,529 $ 2,069,216
============ ===========
<FN>
+ Reflects operating history of predecessor mutual fund (see note 5).
</FN>
</TABLE>
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SEE ACCOMPANYING NOTES. THE CRM FUNDS
6
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THE CRM FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND
-----------------------------------------
YEAR ENDED PERIOD ENDED YEAR 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 --
Redemptions of shares -- Investor Shares ................. (43,002,583) (61,826,506) (67,420,738)
Redemptions 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 --
Redemptions of shares -- Investor Shares ................. (2,876,719) (5,278,702) (4,034,611)
Redemptions 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
============ ============ ============
<FN>
+ Reflects operating history of predecessor mutual fund (see note 5).
(a) For the period October 1, 1998 through June 30, 1999.
</FN>
</TABLE>
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SEE ACCOMPANYING NOTES. THE CRM FUNDS
7
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THE CRM FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
MID 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 ............................. $ 9,886,686 $ 5,338,282 $ 100
------------ ------------ ------------
OPERATIONS
Net investment income .................................... 54,207 11,931 28,981
Net realized gain (loss) from investments ................ 1,394,272 (504,333) 27,223
Net change in unrealized appreciation (depreciation)
of investments ......................................... 620,737 1,530,947 (687,408)
------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations ..................................... 2,069,216 1,038,545 (631,204)
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income -- Institutional shares ....... (20,710) (28,981) --
From net realized gain on investments --
Institutional shares .................................. -- (27,223) --
------------ ------------ ------------
Total distributions to shareholders .................... (20,710) (56,204) --
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Sale of shares -- Institutional Shares ................... 12,620,733 3,724,098 5,998,670
Reinvestment of distributions -- Institutional Shares .... 20,705 55,970 --
Redemption of shares -- Institutional Shares ............. (6,003,599) (214,005) (29,284)
------------ ------------ ------------
Net increase from capital share transactions ........... 6,637,839 3,566,063 5,969,386
------------ ------------ ------------
Total increase in net assets ........................... 8,686,345 4,548,404 5,338,182
------------ ------------ ------------
NET ASSETS -- END OF PERIOD ................................... $ 18,573,031 $ 9,886,686 $ 5,338,282
============ ============ ============
Undistributed net investment income ........................... $ 45,154 $ 11,657 $ 28,981
============ ============ ============
CAPITAL SHARE TRANSACTIONS SHARES SHARES SHARES
------------ ------------ ------------
Sale of shares -- Institutional Shares ................... 1,128,182 414,468 555,219
Reinvestment of distributions -- Institutional Shares .... 2,002 5,483 --
Redemption of shares -- Institutional Shares ............. (616,031) (83,990) (3,080)
------------ ------------ ------------
Net increase in shares ................................. 514,153 335,961 552,139
============ ============ ============
<FN>
+ Reflects operating history of predecessor mutual fund (see note 5).
(a) For the period January 6, 1998 (commencement of operations) through
September 30, 1998.
(b) For the period October 1, 1998 through June 30, 1999.
</FN>
</TABLE>
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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
--------------------------------------------
INSTITUTIONAL 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 ........................ $ 15.11 $ 13.72 $ 15.99
----------- ------------ ------------
Investment operations
Net investment income (loss) ............................. (0.09) 0.01 0.01
Net realized and unrealized gain (loss) on investments ... 1.47 1.38 (2.28)
----------- ------------ ------------
Total from investment operations .............................. 1.38 1.39 (2.27)
----------- ------------ ------------
Distributions to shareholders
Return of capital ........................................ -- --(c) --
----------- ------------ ------------
Net asset value -- End of Period .............................. $ 16.49 $ 15.11 $ 13.72
=========== ============ ============
Total Return .................................................. 9.13% 10.16%(d) (14.20)%(d)
Ratios/Supplemental data
Ratios to average net assets:
Expenses, including reimbursement/waiver ................. 1.09%(f) 1.08%(e) 1.15%(e)
Expenses, excluding reimbursement/waiver ................. 1.09%(f) 1.09%(e) 1.23%(e)
Net investment income, including reimbursement/waiver .... (0.56)%(f) 0.11%(e) 0.08%(e)
Portfolio turnover rate ....................................... 96%(f) 64% 57%
Net assets at end of period (000's omitted) ................... $ 104,562 $ 90,051 $ 48,246
<FN>
+ 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 period January 27, 1998 (inception of Institutional Share class)
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 - Small Cap Value Series
(the"Series") and the portfolio turnover reflects the investment activity of
the Series.
</FN>
</TABLE>
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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>
MID CAP VALUE FUND
--------------------------------------------
INSTITUTIONAL 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 ........................ $ 11.13 $ 9.67 $ 10.00
----------- ------------ ------------
Investment operations
Net investment income .................................... 0.05 0.02 0.05
Net realized and unrealized gain (loss) on investments ... 2.09 1.53 (0.38)
----------- ------------ ------------
Total from investment operations .............................. 2.14 1.55 (0.33)
----------- ------------ ------------
Distributions to shareholders
From net investment income ............................... (0.02) (0.05) --
From net realized gain on investments..................... -- (0.04) --
----------- ------------ ------------
Total distributions to shareholders ........................... (0.02) (0.09) --
----------- ------------ ------------
Net asset value -- End of Period .............................. $ 13.25 $ 11.13 $ 9.67
=========== ============ ============
Total Return .................................................. 19.30% 16.11%(c) (3.30)%(c)
Ratios/Supplemental data
Ratios to average net assets:
Expenses, including reimbursement/waiver ................. 1.15%(e) 1.15%(d) 1.15%(d)
Expenses, excluding reimbursement/waiver ................. 2.20%(e) 2.85%(d) 4.16%(d)
Net investment income, including reimbursement/waiver .... 0.44%(e) 0.22%(d) 0.84%(d)
Portfolio turnover rate ....................................... 274%(e) 118% 78%
Net assets at end of period (000's omitted) ................... $ 18,573 $ 9,887 $ 5,338
<FN>
+ Effective November 1, 1999, The CRM Funds - Mid Cap Value Fund ("Predecessor
Fund") was merged into the WT Mutual Fund - CRM Mid Cap Value Fund. The
financial highlights for periods prior to November 1, 1999 reflect the
performance of the Predecessor Fund.
(a) For the period January 6, 1998 (commencement of operations) through
September 30, 1998.
(b) For the period October 1, 1998 through June 30, 1999.
(c) Not Annualized.
(d) Annualized.
(e) Effective November 1, 1999, the ratios to average net assets include
expenses allocated from the WT Investment Trust I - Mid Cap Value Series
(the "Series") and the portfolio turnover reflects the investment activity
of the Series.
</FN>
</TABLE>
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SEE ACCOMPANYING NOTES. THE CRM FUNDS
10
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THE CRM FUNDS
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. DESCRIPTION OF THE FUND. CRM Small Cap Value Fund and CRM Mid 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 Investor 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, 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.
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.
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.
--------------------------------------------------------------------------------
THE CRM FUNDS
11
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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 MID CAP VALUE
FUND FUND
--------------- --------------
Purchases .................... $53,394,977 $11,451,287
Sales ........................ 58,603,258 7,190,871
During the period November 1, 1999 through June 30, 2000, contributions to
and withdrawals from the Series were as follows:
SMALL CAP VALUE MID CAP VALUE
FUND FUND
--------------- --------------
Contributions ................ $188,417,042 $19,318,116
Withdrawals .................. (44,634,810) (4,595,882)
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.
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.
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 1.15% of each Fund's
Institutional Shares average daily net assets. These undertakings will remain
in place until the Board of Trustees approves its termination.
--------------------------------------------------------------------------------
THE CRM FUNDS
12
<PAGE>
--------------------------------------------------------------------------------
THE CRM FUNDS
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
================================================================================
5. FUND MERGER. Effective November 1, 1999, the CRM Small Cap Value Fund and CRM
Mid 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 - Mid 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
depreciation of the Predecessor Funds as of November 1, 1999 were as follows:
NET UNREALIZED
NET ASSETS DEPRECIATION
---------------- ----------------
The CRM Funds - Small Cap Value Fund $158,832,951 $(2,022,593)
The CRM Funds - Mid Cap Value Fund 12,256,419 (501,458)
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 Mid 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 Mid 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
MID CAP VALUE SERIES
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
================================================================================
SECURITY
SHARES DESCRIPTION VALUE
--------- ------------------------------------ ------------
COMMON STOCK (87.6%)
BROADCAST MEDIA (3.7%)
9,150 AT&T Corp. - Liberty
Media Group* ...................... $ 221,887
7,320 Liberty Livewire Corp.* ............. 514,230
---------------
736,117
---------------
COMMUNICATION & BROADCASTING (3.9%)
4,900 Alltel Corp. ........................ 303,494
6,800 Cablevision Systems
Corp. Class A* .................... 461,550
---------------
765,044
---------------
COMPUTER SERVICES (0.6%)
8,300 S3, Inc.* ........................... 122,425
---------------
ELECTRIC, GAS & WATER UTILITIES (14.4%)
15,400 Cinergy Corp. ....................... 391,737
9,600 Duke Energy Corp. ................... 541,200
6,300 Montana Power Co. ................... 222,469
9,600 NRG Energy, Inc.* ................... 175,200
21,900 PECO Energy Co. ..................... 882,844
8,900 Pinnacle West Capital Corp. ......... 301,487
15,600 UtiliCorp United, Inc. .............. 310,050
---------------
2,824,987
---------------
FINANCE & INSURANCE (13.1%)
INSURANCE CARRIERS (10.5%)
12,900 Ace Ltd. ............................ 361,200
6,600 Ambac Financial Group, Inc. ......... 361,762
5,200 Aon Corp. ........................... 161,525
4,800 Chubb Corp. ......................... 295,200
13,200 Everest Re Group Ltd. ............... 433,950
8,200 Hartford Financial Services
Group, Inc. ....................... 458,687
---------------
2,072,324
---------------
SAVINGS, CREDIT, & OTHER FINANCIAL INSTITUTIONS (1.8%)
12,100 Washington Mutual, Inc. ............. 349,388
---------------
SECURITY
SHARES DESCRIPTION VALUE
--------- ------------------------------------ ------------
FINANCE & INSURANCE (CONTINUED)
STATE & NATIONAL BANKS (0.8%)
8,600 UnionBanCal Corp. ................... $ 159,637
---------------
2,581,349
---------------
MANUFACTURING (18.7%)
COMPUTERS & OFFICE EQUIPMENT (2.0%)
15,800 Electronics for Imaging, Inc.* ...... 399,937
---------------
ELECTRONICS (9.6%)
9,300 Amphenol Corp. Class A* ............. 615,544
32,300 Anixter International, Inc.* ........ 855,950
7,300 L-3 Communications
Holdings, Inc.* ................... 416,556
---------------
1,888,050
---------------
FOOD & BEVERAGE (2.3%)
12,000 Keebler Foods Co. ................... 445,500
---------------
HEALTHCARE PRODUCTS (1.0%)
10,700 Edwards Lifesciences Corp.* ......... 204,637
---------------
HOME PRODUCTS (2.2%)
24,300 Masco Corp. ......................... 438,919
---------------
MISCELLANEOUS INDUSTRIAL MACHINERY & EQUIPMENT (1.6%)
9,300 Toro Co. ............................ 306,319
---------------
3,683,362
---------------
OIL & GAS (8.1%)
OIL & GAS EXPLORATION (4.3%)
4,900 Amerada Hess Corp. .................. 302,575
5,700 Coastal Corp. ....................... 346,988
2,900 Columbia Energy Group ............... 190,313
---------------
839,876
---------------
OIL & GAS PIPELINES (3.8%)
6,900 Dynegy, Inc. ........................ 471,356
8,000 Kinder Morgan, Inc. ................. 276,500
---------------
747,856
---------------
1,587,732
---------------
* Non-income producing security.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
18
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
MID CAP VALUE SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000
================================================================================
SECURITY
SHARES DESCRIPTION VALUE
--------- ------------------------------------ ---------------
SERVICES (22.8%)
ADVERTISING (1.9%)
8,800 True North Communications, Inc. ..... $ 374,550
---------------
BUSINESS SERVICES (1.5%)
13,300 Comdisco, Inc. ...................... 296,756
---------------
COMMERCIAL SERVICES (4.4%)
15,900 Harcourt General, Inc. .............. 864,563
---------------
HOTELS & OTHER LODGING PLACES (0.7%)
4,300 Starwood Hotels & Resorts
Worldwide, Inc. ................... 138,944
---------------
MEDICAL & HEALTH SERVICES (3.0%)
17,600 IMS Health, Inc.* ................... 316,800
3,600 Wellpoint Health Networks, Inc.* .... 260,775
---------------
577,575
---------------
PRINTING & PUBLISHING (11.3%)
11,400 Houghton Mifflin Co. ................ 532,238
9,600 McGraw-Hill Cos., Inc. .............. 518,400
9,200 Scripps, (E.W.) Co. Cl-A ............ 453,100
19,000 Valassis Communications, Inc.* ...... 724,375
---------------
2,228,113
---------------
4,480,501
---------------
TRANSPORTATION (1.9%)
4,100 Kansas City Southern
Industries, Inc.* ................. 363,619
---------------
WHOLESALE & RETAIL TRADE (0.4%)
11,850 Bergen Brunswig Corp. ............... 65,175
---------------
TOTAL COMMON STOCK
(COST $15,745,899) ............................ 17,210,311
---------------
SECURITY
SHARES DESCRIPTION VALUE
--------- ------------------------------------ ---------------
SHORT-TERM INVESTMENTS (7.3%)
948,237 Sansom Street Fund - Money
Market Portfolio .................. $ 948,237
489,854 Temp Cash Fund - Dollar Series ...... 489,854
---------------
TOTAL SHORT-TERM INVESTMENTS
(COST $1,438,091) ............................. 1,438,091
---------------
PAR
------------
U.S. TREASURY BILLS (5.1%)
$500,000 U.S. Treasury Bills
5.320%, 07/20/00 .................. 498,596
500,000 U.S. Treasury Bills
5.440%, 08/03/00 .................. 497,507
---------------
TOTAL U.S. TREASURY BILLS
(COST $996,103) ............................... 996,103
---------------
TOTAL INVESTMENTS (100.0%)
(COST $18,180,093)+ ........................... $ 19,644,505
===============
* Non-income producing security.
+ The cost for Federal income tax purposes was $18,211,925. At June 30, 2000,
net unrealized appreciation was $1,432,580. This consisted of aggregate
gross unrealized appreciation for all securities for which there was an
excess of market value over tax cost of $2,243,169, and aggregate gross
unrealized depreciation for all securities for which there was an excess of
tax cost over market value of $810,589.
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
19
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
================================================================================
<TABLE>
<CAPTION>
SMALL CAP MID CAP
VALUE SERIES VALUE SERIES
------------ -------------
<S> <C> <C> <C>
ASSETS
Investments
Investments, at cost ..................... $170,374,993 $18,180,093
Net unrealized appreciation .............. 6,048,559 1,464,412
------------ -----------
Total investments, at value ................ 176,423,552 19,644,505
Receivable for securities sold ............. 1,887,333 429,814
Receivable for Contributions ............... 42,043 --
Interest and dividends receivable .......... 31,971 15,393
------------ -----------
Total assets 178,384,899 20,089,712
------------ -----------
LIABILITIES
Payable for securities purchased ........... 4,034,114 1,516,888
Payable for Withdrawals .................... 226,954 --
Accrued management fee ..................... 105,294 10,473
Accrued expenses and other liabilities ..... 21,151 11,491
------------ -----------
Total liabilities ............................... 4,387,513 1,538,852
------------ -----------
NET ASSETS ...................................... $173,997,386 $18,550,860
============ ===========
</TABLE>
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
20
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
STATEMENTS OF OPERATIONS
For the period November 1, 1999(a) through June 30, 2000
===============================================================================
<TABLE>
<CAPTION>
SMALL CAP MID CAP
VALUE SERIES VALUE SERIES
--------------- --------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends .................................. $ 425,924 $ 100,781
Interest ................................... 191,839 32,348
---------- ----------
Total investment income ......................... 617,763 133,129
---------- ----------
EXPENSES
Investment advisory fees ................... 840,552 61,572
Administration fees ........................ 112,074 8,210
Accounting services ........................ 9,906 4,713
Custody fees ............................... 8,228 11,639
Trustee fees and expenses .................. 3,959 3,960
---------- ----------
Total expenses .................................. 974,719 90,094
---------- ----------
NET INVESTMENT INCOME (LOSS) .................... (356,956) 43,035
---------- ----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain from investments ......... 22,488,958 1,818,721
Net change in unrealized appreciation
(depreciation) of investments ............ 8,071,152 1,965,870
----------- ----------
Net realized and unrealized gain on investments 30,560,110 3,784,591
----------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ..................... $30,203,154 $3,827,626
=========== ==========
<FN>
(a) Commencement of operations.
</FN>
</TABLE>
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
21
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
SMALL CAP MID CAP
VALUE SERIES VALUE SERIES
-------------- --------------
PERIOD ENDED PERIOD ENDED
JUNE 30, JUNE 30,
2000(A) 2000(A)
-------------- --------------
<S> <C> <C>
NET ASSETS -- BEGINNING OF PERIOD ............... $ -- $ --
------------ -----------
OPERATIONS
Net investment gain (loss) ................. (356,956) 43,035
Net realized gain from investments ......... 22,488,958 1,818,721
Net change in unrealized appreciation
(depreciation) of investments ............ 8,071,152 1,965,870
------------ -----------
Net increase in net assets resulting
from operations ....................... 30,203,154 3,827,626
------------ -----------
TRANSACTIONS IN BENEFICIAL INTEREST
Contributions .............................. 188,418,042 19,319,116
Withdrawals ................................ (44,623,810) (4,595,882)
------------ -----------
Net increase in net assets resulting from
transactions in beneficial interests .. 143,794,232 14,723,234
------------ -----------
Total increase in net assets ............. 173,997,386 18,550,860
------------ -----------
NET ASSETS -- END OF PERIOD ..................... $173,997,386 $18,550,860
============ ===========
<FN>
(a) For the period November 1, 1999 (commencement of operations) through June 30, 2000.
</FN>
</TABLE>
--------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
22
<PAGE>
--------------------------------------------------------------------------------
WT INVESTMENT TRUST I
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. DESCRIPTION OF THE TRUST. Small Cap Value Series and Mid 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.
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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 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 each 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 1.15% 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 MID CAP
VALUE VALUE
SERIES(1) SERIES(1)
------------- -----------
Purchases ............................... $107,290,043 $26,215,666
Sales ................................... 130,463,244 24,552,726
5. FINANCIAL HIGHLIGHTS.
SMALL CAP MID CAP
VALUE VALUE
SERIES(1) SERIES(1)
------------- -----------
Total Return** ........................... 19.70% 37.80%
Ratios to average net assets:
Expenses* ............................. 0.87% 1.10%
Net investment income (loss)* ......... (0.32)% 0.52%
Portfolio Turnover Rate .................. 65% 202%
(1) For the period November 1, 1999 (commencement of operations) through
June 30, 2000.
* Annualized.
** Not annualized.
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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 Mid
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
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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.
CRMINSTA/R
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