The Markman MultiFunds
Annual Report
December 31, 1995
"I do believe 1996 could shape up to be a year to rival 1995."
- --Bob Markman
Graphic:
ABOUT OUR COVER
Minneapolis artist Bill Cannon has wittily captured the essential issue facing
the intelligent fund investor in the nineties: choosing from an explosion of
choices as the economic "seasons" change.
<PAGE>
President's Message
Photo of: Bob Markman
CEO & President
The Markman MultiFunds
Let me say unequivocally: I think 1996 will be a marvelously profitable year
for globally diversified investors. Just keep focused on the long term trends
and don't get spooked by the inevitable "panics du jour."But I could be wrong
(GASP!).What happens then?
Dear Investor,
HERE'S THE PLAN: I MOVE WE SKIP 1996. LET'S JUST REWIND THE TAPE AND DO 1995
ALL OVER AGAIN. ALL IN FAVOR...?
FANTASIES ASIDE, I DO BELIEVE 1996 COULD SHAPE UP TO BE A YEAR TO RIVAL '95. I
KNOW THAT MOST PUNDITS ARE EXPECTING SO-SO PERFORMANCE THIS YEAR ON THE HEELS
OF LAST YEAR'S OUTSIZED GAINS. BUT LET US NOT FORGET THAT THESE ARE THE SAME
GENIUSES WHO WERE BITING THEIR FINGERNAILS DOWN TO THE QUICK A YEAR AGO AS
THEY WORRIED ABOUT 1995.
I THINK IT COULD BE OF INTEREST TO YOU FOR ME TO RUN DOWN BOTH THE BULLISH AND
BEARISH SCENARIOS AND TELL YOU HOW WE MIGHT REACT IN THE PORTFOLIOS AS EITHER
SCENARIO UNFOLDS.
First, the Bull (no pun intended): Try as they might to screw it up, D.C.
Incompetents finally manage to cobble together a balanced budget agreement.
That creates the opening Alan Greenspan needs to aggressively loosen up on
interest rates, thus helping to jump-start a sputtering economy. Winter gloom
on the earnings front turns to positive surprises as we move into spring and
summer. Jim Crabbe starts a technology fund. DCIs (see above) get to the final
$100 billion in budget cuts by agreeing to recalculate the CPI, lowering by
almost 1% the official rate of inflation. The numbers are, of course, a
fantasy, but the bond market claps to signal that they do believe in fairies.
With inflation now hovering just below 2%, long-term Treasuries soar, with
yields dropping below 5% by Labor Day. Lenders throw 51/2% money at
homeseekers, creating the greatest buying binge in a decade.
With interest rates this low, we begin to see multiple expansion in the stock
market. Price earnings ratios climb to 18 to 20; Alan Abelson turns bullish as
the Dow hits 6000 by World Series time. (Which, in our bullish scenario, WILL
be played this year.)
Investors who are globally diversified, and have suffered for the past two
years as international investments lagged the U.S. market, finally get the
wind at their backs. Emerging markets, particularly those of the Pacific Rim,
bounce back strongly. Silently and with very little fanfare (compared with the
'93 boom), returns of 30%+ are seen once again. (Jimmy Rogers stuns CNBC
viewers by admitting he's bought the China Fund on margin.)
KEEP ON READING
Bullish
<PAGE>
Bearish
So what funds will do well in this scenario?
SURPRISINGLY, the exact same ones that did well in 1995. We would be heavy in
Health, Financial Services, Technology, Pacific Rim, and broad-based large cap
growth. If we operate under the premise that the market will always manage to
surprise the greatest number of people, what could be a greater surprise than
to produce a 1996 that in many ways replicates 1995?
AND NOW FOR SOMETHING COMPLETELY DIFFERENT (if you can Bear it): It is March
and the DCIs still have not managed to come to a budget accord. Both sides
agree that the only option at this point is to do nothing and let the voters
decide in November. The stock market, now looking at six months of total
uncertainty, sells off 15%.
Greenspan's Fed provides too little, too late in the way of easing and the
economy slows to a near recession. Earnings continue to weaken. The Fed
finally realizes its error, but by then we see inflation beginning to creep
slowly back into the system. By June, the CPI is growing at a 3 1/2 to 4% rate.
Any hopes for rate cuts are dashed and the long T-bond plummets, with yields
again hitting 8%.
There is no relief on the international front either. European economies
remain sluggish, confidence does not return to Latin America and China refuses
to reaffirm its commitment to a free and open Hong Kong, causing a 25% drop in
the Hang Seng Index.
INVESTMENT BIKER hits number one on the N.Y. Times bestseller list.
So what would be the best moves in this scenario? OBVIOUSLY, cash would be the
place to be, as both stocks and bonds would be weak. And I have no qualms
about raising cash in the portfolios. But I'm not sure that is a complete or
realistic answer to the essential question: "What do you do in a difficult
market?"
There are many ways to use the tools at our disposal to attempt to profit even
in a tough market. In a slow-growth economy, health care stocks and certain
small caps could do well relative to the overall market.
Also, if the economy slows but inflation does not accelerate, bond funds would
look attractive. On the other hand, inflation fears could prompt strong
performance in gold and natural resources funds. Further, a weak U.S. stock
market does not mean we have to see equally weak foreign markets.
There could certainly be pockets of superior relative performance overseas
even as we experience doldrums here in the U.S.
The message, I think, is clear. IT'S IN A DIFFICULT MARKET THAT A BROAD
KNOWLEDGE OF FUNDS AND THE ABILITY TO NIMBLY MOVE ARE MOST VALUED. A gently
rising tide raises all boats, but in choppy seas an experienced hand on the
helm might be the only thing standing between you and the abyss.
<PAGE>
FOCUS ON '96 STRATEGY:
THREE SECTORS WITH SPECIAL POTENTIAL ONE OF THE QUESTIONS WE REGULARLY ASK
MANAGERS OF THE MORE DIVERSIFIED FUNDS WE OWN IS "WHAT SECTORS DO YOU LIKE?"
"WHERE ARE YOU FINDING THE VALUES OR OPPORTUNITIES?" SOMETIMES THESE
DISCUSSIONS PRODUCE A TRENDLESS MIXED BAG OF IDEAS, SOMETIMES A PATTERN STARTS
TO EMERGE.
Why do we do this? Oftentimes these discussions can give us an "early warning"
as to what sectors are likely to do well (or poorly, for that matter). THIS
YEAR'S FOURTH QUARTER TALKS PRODUCED MANY IDEAS, BUT THREE STAND OUT BY VIRTUE
OF NUMBER OF MENTIONS AND INTENSITY OF FEELING. They are Biotechnology,
Financials, and the Pacific Rim.
1
Biotech is, of course, the quintessential risk sector and I imagine many more
people have lost than made money here. Biotech stocks began a new run in
1995's second half and have a lot of momentum as we move into 1996. There are
two significant reasons for this: a more reasonable regulatory environment and
record number of real products (yes, more than just stories!) well along in
the testing cycle. As all aggressive sector moves, this one too will end
badly; but that could be a year and a double away. OUR PLAY: FIDELITY SELECT
BIOTECH. (Indirect play: Invesco Health/Vanguard Health)
2
Financials (banks, insurance companies, brokerage firms, etc.) are seen as
benefitting from three things: low interest rates, continued merger and
acquisition activity, and Baby Boomer's insatiable demand for goods and
services to assist them in college and retirement planning. (I read that in
1996 someone will turn 50 every 71/2 seconds. I'm not sure what the
significance of that is, but it sounds like something that could produce one
helluva impact somewhere.) OUR PLAY: INVESCO FINANCIAL SERVICES, FIDELITY
SELECT REGIONAL BANKS.
3
The Tiger markets of the Pacific Rim (Hong Kong, Taiwan, Korea, Singapore,
Malaysia, Indonesia, and the Philippines) like all "emerging markets" are very
sensitive to money flows, with the effect of institutional buying magnifying
moves on both the upside and the downside. So we are excited to report THAT WE
HAVE YET TO TALK TO A MANAGER WHO IS NOT NOW INCLINED TO INCREASE HIS
ALLOCATION IN THIS AREA IN 1996. Their reasons are simple and sound: economies
that are growing at 6, 7, 8% rates and market multiples that are low enough to
make stocks attractive to even the most value conscious manager. OUR PLAY:
COLONIAL NEWPORT TIGER, MORGAN STANLEY ASIAN GROWTH.
Whatever the scenario that unfolds, you can be sure of one thing: we, as your
managers, will always remain open to new options and flexible in our response.
Our job is to listen to what the market tells us about how to make money for
you.
<PAGE>
THE BEST WE CAN FIND- NO COMPROMISES
MANY TIMES A WELL READ INVESTOR WILL COME ACROSS A FUND THAT LOOKS LIKE A
PERFECT CHOICE ONLY TO BE BROUGHT UP SHORT: THE FUND IS CLOSED OR THE FUND
SPORTS AN UP FRONT SALES CHARGE THAT DIMINISHES ITS ATTRACTIVENESS. AND SO
IT'S ON TO A SOMETIMES SECOND BEST ALTERNATIVE.
THAT'S NOT GOOD ENOUGH FOR THE MARKMAN MULTIFUNDS. WE MAY NOT ALWAYS BE RIGHT
IN WHAT WE BUY AND WHEN WE BUY IT, BUT WE ALWAYS WANT TO BE ABLE TO SAY "WE
THINK THIS IS THE BEST FUND WE CAN BUY TO DO THE JOB." WITH THAT AS OUR
PARADIGM, WE THINK THAT OVER TIME THE HIGH QUALITY OF OUR CHOICES WILL
INEVITABLY PRODUCE ENVIABLE RESULTS.
SO YOU MIGHT BE INTERESTED TO KNOW THAT AS OF DECEMBER 31, 1995, SOME 34% OF
OUR TOTAL HOLDINGS WERE IN FUNDS THAT ARE CLOSED OR IN LOAD FUNDS THAT WE ARE
ABLE TO BUY NO LOAD.
Not Just a Fund...
A Management Relationship The Markman MultiFunds were created to be not just
another group of funds. Our background, as you know, is as private money
managers. As such, we know from experience how important the advisor/client
relationship is. WE ARE COMMITTED TO CREATING, TO AS GREAT A DEGREE AS
POSSIBLE, THE LOOK AND FEEL AND TEXTURE OF A PRIVATE PERSONAL RELATIONSHIP
WITH OUR SHAREHOLDERS. We have structured things to provide maximum possible
access for you to the staff of Markman Capital Management. Additionally, we
now receive over 1000 calls per week for our weekly portfolio update. (We're
told it gets addictive after a while.) We welcome your questions and comments
and hope to provide you with a level of personalization never seen before in
the public fund world.
I and my staff have already had the pleasure of speaking with many of you and
look forward to continuing to build a productive relationship.
What has been most gratifying is that our investors really seem to "get it."
Although some ignorant observers have viewed the fund of funds concept as
appropriate only for the small, inexperienced investor, WE HAVE SEEN A
SURPRISINGLY LARGE NUMBER OF VERY SOPHISTICATED INVESTORS PLACE SUMS WELL INTO
SIX FIGURES WITH OUR FUNDS. These high net worth investors, experienced in
private money management matters, quickly saw the Markman MultiFund Trust as
the MOST EFFICIENT AND COST-EFFECTIVE WAY TO CREATE STATE-OF-THE-ART POTENTIAL
IN A FUND PORTFOLIO. THE FACTS SPEAK FOR THEMSELVES: OUR AVERAGE ACCOUNT IS
SIX TIMES LARGER THAN THE AVERAGE EQUITY MUTUAL FUND ACCOUNT. Like I've always
said, "We're not just a fund, we're a complete portfolio." Thank you for your
confidence.
/s/ Bob Markman
BOB MARKMAN AND THE STAFF AT MARKMAN CAPITAL MANAGEMENT
December 31, 1995
<PAGE>
A WORD ABOUT PORTFOLIO MECHANICS
I'd like to take a moment to discuss a point relating to the mechanics of
portfolio management that I think you might find interesting. In the past,
I've written about how the Aggressive Fund is a CONCENTRATED portfolio. Yet
the NUMBER of funds used has steadily increased all year. That sounds almost
contradictory. The reasoning is this: as we grow larger, the position we take
in each fund we use grows larger. This is good in that it often gives us the
"clout" to get access to greater information about the fund than most
investors. But with that access comes responsibility. Some of the doors that
are now open to us would close quickly if we unnecessarily disrupted a fund by
pulling millions out too quickly.
Yet of paramount importance is our responsibility to you, the shareholder in
the MultiFunds. To make money (and at other times to preserve capital) we
sometimes have to move FAST. The solution? To do extra research and analysis
to find multiple funds with almost identical dynamics. So rather than owning
one fund in a particular category, we might own two or three. That way, if we
decide to quickly cut back on the position, no one fund is unduly affected. It
becomes a win/win for all involved. We have the luxury of taking concentrated
aggressive positions without losing the ability to quickly "go to cash." I've
always viewed this as one of the greatest mechanical advantages of a fund of
funds.
Although these tactics impact greatest on the Aggressive Fund, the Moderate
and Conservative portfolios also benefit from our access/flexibility balancing
act.
<PAGE>
Appendix
A representation of the graphic material contained in the Markman MultiFund
Trust's December 31, 1995 Annual Report is set forth below.
1. Growth of $10,000 invested on 1/31/95
MARKMAN AGGRESSIVE
GROWTH FUND S&P 500
------------------- --------------------
DATE BALANCE DATE BALANCE
------------------- --------------------
01/31/95 $ 10,000 01/31/95 $ 10,000
02/28/95 10,230 02/28/95 10,390
03/31/95 10,460 03/31/95 10,696
04/30/95 10,720 04/30/95 11,011
05/31/95 11,000 05/31/95 11,449
06/30/95 11,790 06/30/95 11,714
07/31/95 12,660 07/31/95 12,103
08/31/95 12,710 08/31/95 12,133
09/30/95 13,180 09/30/95 12,640
10/31/95 12,950 10/31/95 12,595
11/30/95 13,120 11/30/95 13,148
12/31/95 13,121 12/31/95 13,396
Past performance is not predictive of future performance.
2. Growth of $10,000 invested on 1/31/95
MARKMAN MODERATE
GROWTH FUND S&P 500
------------------- --------------------
DATE BALANCE DATE BALANCE
------------------- --------------------
01/31/95 $ 10,000 01/31/95 $ 10,000
02/28/95 10,320 02/28/95 10,390
03/31/95 10,450 03/31/95 10,696
04/30/95 10,630 04/30/95 11,011
05/31/95 10,860 05/31/95 11,449
06/30/95 11,210 06/30/95 11,714
07/31/95 11,730 07/31/95 12,103
08/31/95 12,750 08/31/95 12,133
09/30/95 12,150 09/30/95 12,640
10/31/95 12,060 10/31/95 12,595
11/30/95 12,360 11/30/95 13,148
12/31/95 12,450 12/31/95 13,396
Past performance is not predictive of future performance.
<PAGE>
3. Growth of $10,000 invested on 1/31/95
MARKMAN CONSERVATIVE LEHMAN INTERMEDIATE
GROWTH FUND GOVERNMENT BOND INDEX
------------------- --------------------
DATE BALANCE DATE BALANCE
------------------- --------------------
01/31/95 $ 10,000 01/31/95 $ 10,000
02/28/95 10,200 02/28/95 10,195
03/31/95 10,260 03/31/95 10,247
04/30/95 10,430 04/30/95 10,370
05/31/95 10,710 05/31/95 10,659
06/30/95 10,900 06/30/95 10,731
07/31/95 11,200 07/31/95 10,731
08/31/95 11,300 08/31/95 10,817
09/30/95 11,550 09/30/95 10,887
10/31/95 11,390 10/31/95 11,010
11/30/95 11,680 11/30/95 11,145
12/31/95 11,800 12/31/95 11,259
Past performance is not predictive of future performance.
<PAGE>
MANAGEMENT'S DISCUSSION OF PERFORMANCE
By its very nature, a fund of funds such as the Markman MultiFund Trust, will
tend to have a portfolio that is much more diversified than the contents of
most single market averages. There will be times when that diversification
leads to either a short period of out-performance or under-performance. The
theory is that over extended market cycles, a broadly diversified portfolio
may produce superior risk-adjusted returns. The Funds' first eleven months of
existence was marked by a sharp and steady advance in the S&P500. Not only was
1995 one of the S&P500's best years, its return was accomplished with the
lowest volatility on record. In this environment, the diversification of the
Markman Moderate Growth Fund and the Markman Aggressive Growth Fund into areas
such as international funds and small cap funds (that have historically
enhanced value) acted as a drag on performance.
Conversely, the Markman Conservative Growth Fund during this period benefitted
from this same concept of diversification relative to the Lehman Intermediate
Government Bond Index. A blend of cautious large cap stock funds, diversified
income funds, and international holdings enabled this portfolio to outperform
its index.
For more information on each Fund, see the subsequent discussions.
<PAGE>
The Markman MultiFunds Performance
Markman AGGRESSIVE Growth Fund
"The three sectors we expect to greatly outperform the market are Biotech,
Financials, and the Pacific Rim."
WEAKNESS IN SMALL CAP STOCKS COMBINED WITH A VICIOUS CORRECTION IN TECHNOLOGY
WAS ENOUGH TO OFFSET SOME OF OUR VERY STRONG PERFORMERS THIS PAST QUARTER. The
result was a temporary stall in previously strong upward momentum.
As I've written in the President's Message, the three sectors we expect to
greatly outperform the market are Biotech, Financials, and the Pacific Rim.
These three sectors are well represented in the Aggressive Fund, comprising
over 40% of the market value of the stocks held by the funds that we own.
As an Aggressive Fund shareholder, you know that markets (and more
specifically, subsectors of markets) inevitably tend to move from one extreme
to the other. The true aggressive embraces this, welcomes this, for it is the
way markets present us with significant buying opportunities. Our job remains
to spot those periods of extreme optimism and pessimism and rotate
accordingly.
We begin 1996 with our high tech positions at their lowest levels ever in the
portfolio. Clearly, the momentum has shifted in this sector but my instinct
tells me that "the baby is being thrown out with the bathwater." I would not
be surprised if by our next quarterly report we'd have significantly added to
these currently oversold positions.
I want to make clear to you as shareholders that this portfolio will only buy
aggressive or near aggressive funds. If I feel a need to temporarily get
defensive, I will use cash rather than other more conservative stock funds.
<PAGE>
<TABLE>
MARKMAN AGGRESSIVE GROWTH FUND COMPARISON
PUTTING IT IN PERSPECTIVE
BEHIND THE COMPARISON
<CAPTION>
4TH QTR. 1995 3RD QTR. 1995 SINCE INCEPTION*
<S> <C> <C> <C>
MARKMAN AGGRESSIVE GROWTH FUND -.4% 11.8% 31.2%
S&P 500 6.0% 7.9% 34.0%
LIPPER GROWTH FUND INDEX 1.5% 9.1% 31.0%
<FN>
*From February 1, 1995
PORTFOLIO OF INVESTMENTS - Markman Aggressive Growth Fund - December 31, 1995
<CAPTION>
FUND SHARES MARKET VALUE % OF TOTAL STATUS*
(UNAUDITED)
<S> <C> <C> <C> <C>
Invesco Strategic Health Sciences Portfolio 100,570 $ 5,264,828 12.4% +
Vanguard U.S. Growth Portfolio 239,926 4,882,492 11.5 +
PBHG Growth Fund t 169,884 4,063,630 9.6 +
Fidelity Select Biotechnology Portfolio 116,010 4,040,616 9.6 +
Colonial Newport Tiger Fund (class z) 324,517 4,040,234 9.6 +
Invesco Strategic Financial Services Portfolio 179,498 3,414,054 8.1 -
Heartland Value Fund 104,499 2,920,745 6.9 -
Brandywine Fund 89,664 2,517,761 6.0 new
PBHG Emerging Growth Fund 116,254 2,486,668 5.9 -
The Robertson Stephens Value + Growth Fund t 101,681 2,304,082 5.4 -
Fidelity Select Regional Banks Portfolio 96,623 2,216,530 5.2 new
T. Rowe Price Science & Technology Fund 46,368 1,350,230 3.2 new
Seligman Communications and Information Fund, Inc. 50,288 1,105,838 2.6 -
Twentieth Century Vista Investors 66,247 967,213 2.3 -
Miscellaneous - Money Market Fund 1,182,976 1,182,976 2.8 +
----------- -----
Total Investments (cost $42,663,515) 42,757,897 101.1
Other Assets and Liabilities (Net) (432,401) (1.1)
----------- -----
Net Assets $42,325,496 100.0%
=========== =====
<FN>
See accompanying notes to financial statements.
* "+" means larger percentage than end of prior quarter, "-" means smaller
percentage than end of prior quarter, "new" means did not appear in prior
quarter.
t Non-income producing security
</TABLE>
<PAGE>
The Markman MultiFunds Performance
Markman MODERATE Growth Fund
"Should the tech sell off we saw in the fourth quarter continue, I expect
we'll get to levels that will make these stocks compelling low risk buys."
THERE WAS NOT MUCH IN THE WAY OF SIGNIFICANT CHANGES IN THE MODERATE PORTFOLIO
DURING THE FOURTH QUARTER, WITH OUR LARGE HOLDINGS REMAINING RELATIVELY
CONSTANT.
We did cut back our technology holdings a bit (as reflected in the reduced
Seligman and Robertson Stephens holdings) finishing the year in what I
consider to be an UNDERWEIGHTED technology position. Should the tech sell off
we saw in the fourth quarter continue, I expect we'll get to levels that will
make these stocks compelling low risk buys. Be assured that this is one of the
more significant things we are watching and we are prepared to jump right back
in at the appropriate time.
New to the portfolio is Colonial Newport Tiger; we've already discussed the
improved prospects for the Pacific Rim. We also added Fidelity Select Food and
Agriculture. This is one of the few funds that can legitimately claim to be a
defensive sector fund - somewhat of an oxymoron. The portfolio is comprised of
large cap consumer nondurables, companies like Pepsico, Kellogg,
Ralston-Purina, Nabisco, and Philip Morris. Go to the grocery store, then hit
the local Wal Mart, make a pit stop at McDonald's, and you've got the Select
Food and Agriculture portfolio.
I've written before that the Moderate Fund's true long-term capabilities are
only likely to be seen after we've experienced an extended choppy or downward
market. The kind of market I expect for 1996 (violent sector rotation within
an upward trend and better international results) should result in the kind of
risk-adjusted performance we hope for in this Fund.
<PAGE>
<TABLE>
MARKMAN MODERATE GROWTH FUND COMPARISON
PUTTING IT IN PERSPECTIVE
BEHIND THE COMPARISON
<CAPTION>
4TH QTR. 1995 3RD QTR. 1995 SINCE INCEPTION*
<S> <C> <C> <C>
MARKMAN MODERATE GROWTH FUND 2.5% 8.4% 24.5%
S&P 500 6.0% 7.9% 34.0%
LIPPER EQUITY INCOME FUND INDEX 5.2% 7.2% 27.5%
<FN>
*From February 1, 1995
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS - Markman Moderate Growth Fund - December 31, 1995
<CAPTION>
FUND SHARES MARKET VALUE % OF TOTAL STATUS*
(UNAUDITED)
<S> <C> <C> <C> <C>
Vanguard U.S. Growth Portfolio 387,458 $ 7,884,763 20.2% -
Invesco Strategic Health Sciences Portfolio 90,118 4,717,663 12.1 +
Artisan Small Cap Fund 353,354 4,657,209 12.0 -
The Yacktman Fund, Inc 277,919 3,360,043 8.6 -
Fidelity Select Food & Agriculture Portfolio 82,982 3,259,539 8.4 new
Invesco Strategic Financial Services Portfolio 169,719 3,228,052 8.3 +
Colonial Newport Tiger Fund (class z) 178,754 2,225,482 5.7 new
PBHG Growth Fund t 87,926 2,103,193 5.4 new
Mutual Discovery Fund. 130,826 1,983,315 5.1 -
Mutual Beacon Fund 51,446 1,848,972 4.7 -
Cohen & Steers Realty Shares 31,089 1,076,314 2.8 new
Seligman Communications and Information Fund, Inc. 31,647 695,928 1.8 -
Fidelity Select Consumer Products Portfolio 34,195 592,934 1.5 new
The Robertson Stephens Value + Growth Fund t 21,390 484,707 1.2 -
Longleaf Partners Fund 13,611 287,881 .7 -
miscellaneous - Money Market Fund 481,751 481,751 1.2 +
----------- -----
Total Investments (cost $37,523,112) 38,887,746 99.7
Other Assets and Liabilities (Net) 99,892 .3
----------- -----
Net Assets . . . . . $38,987,638 100.0%
=========== =====
<FN>
See accompanying notes to financial statements.
* "+" means larger percentage than end of prior quarter, "-" means smaller
percentage than end of prior quarter, "new" means did not appear in prior
quarter.
t Non-income producing security
</TABLE>
<PAGE>
The Markman MultiFunds Performance
Markman CONSERVATIVE Growth Fund
"As the quarter progressed, it became clear to us that the risk/return
potential in a couple of sectors merited our increased attention."
I like to think that our Conservative Fund shareholders got exactly what they
expected in the fourth quarter: low volatility, steady return, a well-hedged,
diversified portfolio, and just a smidgen of sector spice if the time is
right.
As you can see, we steadily rotated the portfolio toward the strength of the
market, putting a greater emphasis on mid to large cap growth holdings. We
slightly reduced our cautious small cap dollars and added a second small cap
fund, Baron Asset to the mix.
As the quarter progressed, it became clear to us that the risk/return
potential in a couple of sectors merited our increased attention. The ongoing
rally in health care stocks prompted us to buy Vanguard Health Care, the most
cautious of the health sector funds. This very well run fund has racked up
excellent long-term returns within its peer group by taking a consistently
lower relative risk.
Real estate investment trusts (REITS) finally broke out of an eighteen month
doldrum in December. Values in this sector have gotten to irresistable levels
and yields are quite attractive relative to other income producing
alternatives. I expect this to be a diversification move that will serve to
lower the overall volatility of the portfolio while at the same time
positively impacting our upside potential. We selected the fund that is the
nearly unanimous choice of fund pros, Cohen & Steers Realty Shares.
<PAGE>
<TABLE>
MARKMAN CONSERVATIVE GROWTH FUND COMPARISON
PUTTING IT IN PERSPECTIVE
BEHIND THE COMPARISON
<CAPTION>
4TH QTR. 1995 3RD QTR. 1995 SINCE INCEPTION*
<S> <C> <C> <C>
MARKMAN CONSERVATIVE GROWTH FUND 2.2% 6.0% 18.0%
LIPPER BALANCED FUND INDEX 4.2% 5.4% 23.1%
LEHMAN INT. GOV'T. BOND INDEX 3.4% 1.4% 12.6%
<FN>
* From February 1, 1995
PORTFOLIO OF INVESTMENTS - Markman Conservative Growth Fund - December 31,
1995
<CAPTION>
FUND SHARES MARKET VALUE % OF TOTAL STATUS*
(UNAUDITED)
<S> <C> <C> <C> <C>
Vanguard U.S. Growth Portfolio 58,777 $1,196,119 12.1% +
Oakmark Fund 38,239 1,137,598 11.6 +
Lindner Dividend Fund, Inc. 41,282 1,112,969 11.3 -
The Robertson Stephens Growth + Income Fund t 86,989 977,752 9.9 -
Vanguard Wellesley Income Fund 41,748 853,325 8.7 -
SoGen International Fund, Inc. 32,444 797,475 8.1 -
Vanguard Specialized Health Care Portfolio. 14,168 705,832 7.2 new
Cohen & Steers Realty Shares 19,579 677,828 6.9 new
Vanguard Wellington Fund 27,688 676,411 6.9 new
Mutual Qualified Fund 21,643 643,656 6.5 -
Baron Asset Fund 15,923 473,402 4.8 new
T. Rowe Price Small Cap Value Fund 27,021 446,664 4.5 -
Miscellaneous - Money Market Fund 245,419 245,419 2.5 +
---------- -----
Total Investments (cost $9,769,471) 9,944,450 101.0
Other Assets and Liabilities (Net) (92,290) (1.0)
---------- -----
Net Assets $9,852,160 100.0%
========== =====
<FN>
See accompanying notes to financial statements.
* "+" means larger percentage than end of prior quarter, "-" means smaller
percentage than end of prior quarter, "new" means did not appear in prior
quarter.
t Non-income producing security
</TABLE>
<PAGE>
<TABLE>
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES - DECEMBER 31, 1995
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
ASSETS GROWTH FUND GROWTH FUND GROWTH FUND
<S> <C> <C> <C>
Investments in securities:
At acquisition cost $9,769,471 $37,523,112 $42,663,515
========== =========== ===========
At value (note 1) $9,944,450 $38,887,746 $42,757,897
Receivable for capital shares sold 34,458 410,750 678,370
Dividends receivable 804 692 1,740
---------- ----------- -----------
TOTAL ASSETS $9,979,712 $39,299,188 $43,438,007
========== =========== ===========
LIABILITIES
Payable for capital shares redeemed $ 5,704 $ 8,484 $ 6,600
Distributions payable to shareholders 4,694 31,695 55,094
Payable for bank overdraft 109,347 240,943 1,027,399
Payable to affiliates (note 3) 7,807 30,428 23,418
---------- ----------- -----------
TOTAL LIABILITIES $ 127,552 $ 311,550 $ 1,112,511
========== =========== ===========
NET ASSETS
Net assets consist of:
Capital shares $9,677,181 $37,623,004 $42,231,114
Net unrealized appreciation on investments 174,979 1,364,634 94,382
---------- ----------- -----------
NET ASSETS $9,852,160 $38,987,638 $42,325,496
========== =========== ===========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value)(note 4) 897,990 3,445,994 3,588,830
========== =========== ===========
Net asset value, redemption price and offering
price per share (note 1) $ 10.97 $ 11.31 $ 11.79
========== =========== ===========
see accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
INVESTMENT INCOME GROWTH FUND GROWTH FUND GROWTH FUND
<S> <C> <C> <C>
Dividend income $206,739 $ 387,087 $ 213,436
-------- ---------- ----------
EXPENSES
Investment advisory fees 38,783 202,419 173,422
Independent trustees' fees 10,500 10,500 10,500
-------- ---------- ----------
Total expenses (note 3) 49,283 212,919 183,922
-------- ---------- ----------
Net investment income 157,456 174,168 29,514
-------- ---------- ----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 340,634 2,000,269 2,755,722
Capital gain distributions from other investment companies 193,168 1,361,368 1,448,986
Net change in unrealized
appreciation/depreciation on investments 174,979 1,364,634 94,382
-------- ---------- ----------
Net realized and unrealized gains on investments 708,781 4,726,271 4,299,090
-------- ---------- ----------
Net increase in net assets from operations $866,237 $4,900,439 $4,328,604
======== ========== ==========
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS - FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
FROM OPERATIONS GROWTH FUND GROWTH FUND GROWTH FUND
<S> <C> <C> <C>
Net Investment Income $ 157,456 $ 174,168 $ 29,514
Net realized gains from security transactions 340,634 2,000,269 2,755,722
Capital gain distributions from other investment companies 193,168 1,361,368 1,448,986
Net change in unrealized appreciation/
depreciation on investments 174,979 1,364,634 94,382
----------- ----------- -----------
Net increase in net assets from operations 866,237 4,900,439 4,328,604
----------- ----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income . . . . . . . . . . . . . (157,456) (174,168) (29,514)
Distributions in excess of net investment income (note 1) (33,397) (743,836) (728,239)
Distributions from net realized gains . . . . . . . . . . . . . . (500,405) (2,617,801) (3,476,469)
----------- ----------- -----------
Decrease in net assets from distributions to shareholders (691,258) (3,535,805) (4,234,222)
----------- ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (note 4)
Proceeds from shares sold 11,949,211 40,307,575 42,808,631
Net asset value of shares issued in reinvestment
of distributions to shareholders 686,564 3,504,110 4,179,128
Payments for shares redeemed (2,988,594) (6,228,681) (4,786,645)
----------- ----------- -----------
Net increase in net assets from
capital share transactions 9,647,181 37,583,004 42,201,114
----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 9,822,160 38,947,638 42,295,496
NET ASSETS
Beginning of period (note 1) 30,000 40,000 30,000
----------- ----------- -----------
End of period $ 9,852,160 $38,987,638 $42,325,496
=========== =========== ===========
see accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
<CAPTION>
FINANCIAL HIGHLIGHTS - MARKMAN AGGRESSIVE GROWTH FUND
Per share data for a share outstanding throughout the period ended December
31, 1995(A)
<S> <C>
Net asset value - beginning of period $ 10.00
Income from investment operations:
Net investment income 0.01
Net realized and unrealized gains on investments 3.11
------
Total from investment operations 3.12
------
Less distributions:
Dividends from net investment income (0.01)
Distributions in excess of net investment income (0.23)
Distributions from net realized gains (1.09)
------
Total distributions (1.33)
------
NET ASSET VALUE - END OF PERIOD $ 11.79
=======
TOTAL RETURN 31.21%
=======
NET ASSETS - END OF PERIOD (000'S) $42,325
=======
Ratio of expenses to average net assets 0.95%(B)
Ratio of net investment income to average net assets 0.15%(B)
Portfolio turnover rate 204%
<CAPTION>
FINANCIAL HIGHLIGHTS - MARKMAN MODERATE GROWTH FUND
Per share data for a share outstanding throughout the period ended December
31, 1995(A)
<S> <C>
Net asset value - beginning of period $ 10.00
-------
Income from investment operations:
Net investment income 0.06
Net realized and unrealized gains on investments 2.39
-------
Total from investment operations 2.45
-------
Less distributions:
Dividends from net investment income (0.06)
Distributions in excess of net investment income (0.24)
Distributions from net realized gains (0.84)
-------
Total distributions (1.14)
-------
NET ASSET VALUE - END OF PERIOD $ 11.31
=======
TOTAL RETURN 24.50%
=======
NET ASSETS - END OF PERIOD (000'S) $38,988
=======
Ratio of expenses to average net assets 0.95%(B)
Ratio of net investment income to average net assets 0.77%(B)
Portfolio turnover rate 141%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - MARKMAN CONSERVATIVE GROWTH FUND
Per share data for a share outstanding throughout the period ended December
31, 1995(A)
<S> <C>
Net asset value - beginning of period $10.00
------
Income from investment operations:
Net investment income 0.19
Net realized and unrealized gains on investments 1.61
------
Total from investment operations 1.80
------
Less distributions:
Dividends from net investment income (0.19)
Distributions in excess of net investment income (0.04)
Distributions from net realized gains (0.60)
------
Total distributions (0.83)
------
NET ASSET VALUE - END OF PERIOD $10.97
======
TOTAL RETURN 18.00%
======
NET ASSETS - END OF PERIOD (000'S) $9,852
======
Ratio of expenses to average net assets 0.95%(B)
Ratio of net investment income to average net assets 3.02%(B)
Portfolio turnover rate 176%
<FN>
(A) Represents the period from the initial public offering of shares (January
26, 1995) through December 31, 1995. No income was earned or expenses incurred
from the date the initial shares were purchased by the Adviser through the
date of public offering.
(B) Annualized.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
</TABLE>
<PAGE>
Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Markman MultiFund Trust (the Trust) is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end non-diversified
management investment company. The Trust was organized as a Massachusetts
business trust on September 7, 1994. The Trust offers three series of shares
to investors: the Markman Conservative Growth Fund, the Markman Moderate
Growth Fund and the Markman Aggressive Growth Fund (collectively, the Funds).
The Trust was capitalized on November 28, 1994, when the Funds' investment
adviser, Markman Capital Management, Inc. (the dviser), purchased the initial
shares of each Fund at $10.00 per share. The public offering of shares
commenced on January 26, 1995. The Trust had no operations prior to the public
offering of shares except for the initial issuance of shares to the Adviser.
THE FOLLOWING IS A SUMMARY OF THE TRUST'S SIGNIFICANT ACCOUNTING POLICIES:
SECURITIES VALUATION -- The Funds' portfolio securities are valued as of the
close of business of the regular session of trading on the New York Stock
Exchange (currently 4:00 p.m., Eastern time). Shares of open-end management
investment companies (mutual funds) in which the Funds invest are valued at
their respective net asset values as determined under the 1940 Act. Such
mutual funds value securities in their portfolios for which market quotations
are readily available at their current market value (generally the last
reported sale price) and all other securities and assets at fair value
pursuant to methods established in good faith by the Board of Trustees or
Directors of the underlying mutual fund. Money market funds in which the Funds
also invest generally value securities in their portfolios on an amortized
cost basis, which approximates market.
SHARE VALUATION -- The net asset value per share of each Fund is calculated
daily by dividing the total value of that Fund's assets, less liabilities, by
the number of shares outstanding, rounded to the nearest cent. The offering
and redemption price per share of each Fund are equal to the net asset value
per share.
INVESTMENT INCOME -- Dividend income is recorded on the ex-dividend date. For
financial reporting purposes, the Funds record distributions of short-term and
long-term capital gains made by mutual funds in which the Funds invest as
realized gains. For tax purposes, the short-term portion of such distrubutions
is treated as dividend income by the Funds.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders arising from
each Fund's net investment income and net realized capital gains, if any, are
distributed at least once each year. Income distributions and capital gain
distributions are determined in accordance with income tax regulations, which
may differ from generally accepted accounting principles.
SECURITY TRANSACTIONS -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
<PAGE>
FEDERAL INCOME TAX -- It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code (the Code) available to regulated
investment companies. As provided therein, in any fiscal year in which a Fund
so qualifies and distributes at least 90% of its taxable net income, the Fund
(but not the shareholders) will be relieved of federal income tax on the
income distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during
the twelve months ended October 31) plus undistributed amounts from prior
years.
Each of the Funds files a tax return annually using tax accounting methods
required under provisions of the Code which may differ from generally accepted
accounting principles, the basis on which these financial statements are
prepared. The differences arise primarily from the treatment of short-term
gain distributions made by mutual funds in which the Funds invest and the
deferral of certain losses under federal income tax regulations. Accordingly,
the amount of net investment income and net realized capital gain or loss
reported in the financial statements may differ from that reported in the
Fund's tax return and, consequently, the character of distributions to
shareholders reported in the Statement of Changes in Net Assets and the
Financial Highlights may differ from that reported to shareholders for federal
income tax purposes. As a result of such differences, reclassifications were
made to the components of net assets to conform with generally accepted
accounting principles.
<TABLE>
FEDERAL INCOME TAX
The following information is based upon the federal income tax cost of
portfolio investments as of December 31, 1995:
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
GROWTH FUND GROWTH FUND GROWTH FUND
<S> <C> <C> <C>
Gross unrealized appreciation $ 223,502 $ 1,822,565 $ 1,205,271
Gross unrealized depreciation (66,544) (489,748) (1,198,114)
---------- ----------- -----------
Net unrealized appreciation $ 156,958 $ 1,332,817 $ 7,157
---------- ----------- -----------
Federal income tax cost $9,787,492 $37,554,929 $42,750,740
========== =========== ===========
</TABLE>
<PAGE>
Notes to Financial Statements
2. INVESTMENT TRANSACTIONS
During the year ended December 31, 1995, purchases and proceeds from sales and
maturities of portfolio securities, other than short-term investments,
amounted to $18,853,122 and $9,669,704, respectively, for the Markman
Conservative Growth Fund, $68,604,725 and $33,563,632, respectively, for the
Markman Moderate Growth Fund, and $81,266,630 and $42,541,813, respectively,
for the Markman Aggressive
Growth Fund.
3. TRANSACTIONS WITH AFFILIATES
The Chairman of the Board and President of the Trust is also the President of
Markman Capital Management, Inc. (the Adviser). Certain other trustees and
officers of the Trust are officers of the Adviser or of MGF Service Corp.
(MGF), the administrative services agent, shareholder servicing and transfer
agent, and accounting services agent for the Trust.
INVESTMENT ADVISORY AGREEMENT
The Funds' investments are managed by the Adviser pursuant to the terms of an
Investment Management Agreement. Each Fund pays the Adviser an investment
management fee, computed and accrued daily and paid monthly, at an annual rate
of .95% of average daily net assets of each Fund. The Adviser pays all
operating expenses of the Funds except brokerage commissions, taxes, interest,
fees and expenses of independent trustees and any extraordinary expenses. In
addition, the Adviser is contractually obligated to reduce its investment
management fee in an amount equal to each Fund's allocable portion of the fees
and expenses of the Trust's independent trustees.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of the Administrative Services Agreement between the Trust,
the Adviser and MGF, MGF supplies non-investment related statistical and
research data, internal regulatory compliance services and executive and
administrative services for each of the Funds. MGF supervises the preparation
of tax returns for the Funds, reports to shareholders of the Funds, reports to
and filings with the Securities and Exchange Commission and state securities
commissions and materials for meetings of the Board of Trustees. For the
performance of these administrative services, the Adviser, out of its
investment management fee, pays MGF a monthly fee at an annual rate of .10% of
each Fund's respective average daily net assets up to $25 million, .075% of
such net assets from $25 million to $100 million, .05% of such net assets from
$100 million to $200 million, and .025% of such net assets in excess of $200
million, subject to a $1,000 minimum monthly fee for each Fund.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust, the Adviser and MGF, MGF maintains
the records of each shareholder's account, answers shareholders' inquiries
concerning their accounts, processes purchases and redemptions of each Fund's
shares, acts as dividend and distribution disbursing agent and performs other
shareholder service functions. For the performance of these services, the
Adviser, out of its investment management fee, pays MGF a monthly fee with
respect to each Fund at an annual rate of $15.00 per shareholder account,
subject to a $1,200 minimum monthly fee for each Fund. In addition, the
Adviser pays out-of-pocket expenses including, but not limited to, postage and
supplies.
<PAGE>
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust, the
Adviser and MGF, MGF calculates the daily net asset value per share and
maintains the financial books and records of each Fund. For the performance of
these services, the Adviser, out of its investment management fee, pays MGF a
fee, based on current asset levels, of $2,500 per month with respect to each
Fund.
4. CAPITAL SHARE TRANSACTIONS
Proceeds and payments on capital share transactions as shown in the Statement
of Changes in Net Assets are the result of
the following capital share activity for the year ended December 31, 1995:
<TABLE>
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
GROWTH FUND GROWTH FUND GROWTH FUND
<S> <C> <C> <C>
Shares sold 1,099,287 3,661,638 3,621,298
Shares issued in reinvestment
of distributions to shareholders 62,586 309,824 354,464
Shares redeemed (266,883) (529,468) (389,932)
--------- --------- ---------
Net increase in shares outstanding 894,990 3,441,994 3,585,830
Shares outstanding, beginning of period 3,000 4,000 3,000
--------- --------- ---------
Shares outstanding, end of period 897,990 3,445,994 3,588,830
========= ========= =========
</TABLE>
<PAGE>
Report of Independent Public Accountants
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF THE MARKMAN MULTIFUND TRUST:
We have audited the accompanying statement of assets and liabilities of the
Markman Conservative Growth Fund, the Markman Moderate Growth Fund and the
Markman Aggressive Growth Fund of Markman MultiFund Trust (a Massachusetts
business trust), including the portfolios of investments, as of December 31,
1995, and the related statement of operations, the statement of changes in net
assets, and the financial highlights for the periods indicated thereon (see
pages 7, 9, 11-16). These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with generally accepted auditing
standards. 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. Our procedures included confirmation of securities
owned as of December 31, 1995, by correspondence with the custodian. 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 audit provides 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 the
Markman Conservative Growth Fund, the Markman Moderate Growth Fund and the
Markman Aggressive Growth Fund as of December 31, 1995, the results of their
operations, the changes in their net assets, and their financial highlights
for the periods indicated thereon, in conformity with generally accepted
accounting
principles.
/s/ Authur Andersen LLP
Cincinnati, Ohio
January 12, 1996
<PAGE>
Application & Request Forms
YOUR MMFT APPLICATION & REQUEST FORMS
You may use the FOLLOWING APPLICATION AND REQUEST FORMS KIT to invest directly
in The Markman MultiFunds. The minimum direct investment is $25,000.
If you want to invest less than $25,000, you may purchase The Markman
MultiFunds through Charles Schwab & Company (1-800-266-5623), Jack White and
Company (1-800-323-3263), and Fidelity Investments (1-800-544-7558), among
others.
Mail us YOUR COMPLETED FORMS using the enclosed postage-paid business reply
envelope. You will be contacted by mail verifying your investment.
For ADDITIONAL FORMS or ANSWERS TO ANY QUESTIONS just contact The Markman
MultiFunds (between the hours of 8:30 AM and 6:00 PM EST):
Toll-free: 1-800-707-2771
In Cincinnati: 513-629-2070
THIS KIT INCLUDES:
* ACCOUNT APPLICATION
* IRA APPLICATION
* IRA TRANSFER REQUEST
THESE FORMS ARE AVAILABLE:
(CALL 1-800-707-2771)
* DOLLAR COST AVERAGING APPLICATION
* SYSTEMATIC WITHDRAWAL PLAN REQUEST
* AUTOMATIC INVESTMENT REQUEST
* COMPANY RETIREMENT ACCOUNT APPLICATION
* COMPANY RETIREMENT PLAN PROTOTYPE
(INCLUDES PROFIT SHARING, MONEY PURCHASE, 401(K))
* 403(B) PLAN AND APPLICATION
<PAGE>
ACCOUNT APPLICATION
Logo: The Markman MultiFunds
The Markman MultiFunds
Shareholders Services
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1-800-707-2771
- --------------------------------------------------------
1 INVESTMENT INFORMATION Select Fund(s) and fill in amounts
o Conservative Growth Fund 57-______________ ($25,000 minimum)
o Moderate Growth Fund 58-______________ ($25,000 minimum)
o Aggressive Growth Fund 59-______________ ($25,000 minimum)
o Total amount being invested: ______________ Do not send cash.
Payment: o Check or draft payable to The Markman MultiFunds.
o Bank Wire: For wire instructions please call 1-800-707-2771
2 HOW DO YOU WANT YOUR ACCOUNT REGISTERED? Check a box
o Individual or o Joint Registrat
_____________________________________________ ______________________________
OWNER'S NAME (FIRST, INITIAL, LAST) SOCIAL SECURITY #
18 or older o Yes o No
_____________________________________________ ______________________________
OWNER'S NAME (FIRST, INITIAL, LAST) SOCIAL SECURITY #
Joint accounts are registered joint with right of survivorship unless you
specify otherwise
o CORPORATION, PARTNERSHIP OR OTHER ENTITY
_____________________________________________ ______________________________
NAME OF ENTITY TAXPAYER I.D. NUMBER
CHECK THE APPROPRIATE BOX: o Corporation o Partnership
o Foundation o Endowment o Non-Profit o Other
o TRUST
_____________________________________________ ______________________________
TRUSTEE'S NAME DATE OF BIRTH SOCIAL SECURITY #
_____________________________________________ ______________________________
NAME OF TRUST AGREEMENT DATE OF TRUST AGREEMENT
_____________________________________________ ______________________________
BENEFICIARY'S NAME TAXPAYER I.D. #
o GIFT OR TRANSFER TO MINOR
_____________________________________________ ______________________________
MINOR'S NAME (FIRST, INITIAL, LAST) MINOR'S SOCIAL SECURITY NUMBER
_____________________________________________ ______________________________
CUSTODIAN'S NAME (FIRST, INITIAL, LAST)
Under the ____________________ (specify state) Uniform Gifts/Transfer to
Minors Act
3 MAILING ADDRESS OF REGISTERED OWNER(S)
_____________________________________________
Street or P.O. Box Citizen of U.S.? o Yes o No
_____________________________________________ ______________________________
City/State/Zip Country
( ) ( )
_____________________________________________ ______________________________
phone Number Fax Number
Call the Markman Multifunds with questions 1-800-707-2771
PLEASE COMPLETE THE REVERSE SIDE
<PAGE>
ACCOUNT APPLICATION 4
TELEPHONE REDEMPTION
Shares may be redeemed by calling (800) 707-2771 (See description in
prospectus).
If no box is checked, the telephone redemption option will be elected.
o Investor DECLINES the telephone redemption o ACH Transfer
o Investor ELECTS the telephone redemption
Redemption will be sent to address of record unless you specify below the bank
to which redemption proceeds are to be wired, and enclose a voided check from
the bank you wish to use:
_____________________________________________ ______________________________
Name in which BANK account is registered Bank Account Number
_____________________________________________ ______________________________
BANK NAME ABA ROUTING NUMBER
_____________________________________________ ______________________________
BANK ADDRESS BANK TELEPHONE NUMBER
5 INCOME AND CAPITAL GAINS PAYMENT ELECTION
o We recommend that you reinvest all your dividends and capital gain
distributions from these funds.
If you agree, check this box.
o Or, you can reinvest all capital gain distributions but pay the dividends in
cash.
o Or, pay all dividends and capital gain distributions in cash by check o or
ACH Transfer.
If you wish to have your distributions paid in cash by ACH Transfer to your
bank, please complete the instructions below, and enclose a voided check from
the bank account you wish to use:
_____________________________________________ ______________________________
Name in which BANK account is registered Bank Account Number
_____________________________________________ ______________________________
BANK NAME ABA ROUTING NUMBER
_____________________________________________ ______________________________
BANK ADDRESS BANK TELEPHONE NUMBER
<PAGE>
6 CERTIFICATION AND SIGNATURE(S)
By signing this form, the investor represents and warrants that: a. the
Investor is of legal age, and has the full right, power and authority to
invest in the Fund; and b. the Investor has received a current prospectus of
the Fund and agrees to be bound by its terms.
Under penalties of perjury, the Investor certifies that 1. the number shown on
this form is the Investor's correct social security or taxpayer ID number, and
2. the Investor is not subject to backup withholding because i. the Investor
has not been notified by the Internal Revenue Service (IRS) that the Investor
is subject to backup withholding as a result of a failure to report all
interest or dividends, or ii. the IRS has notified the Investor that the
Investor is no longer subject to backup withholding. (Strike out Item 2. if
the Investor is currently subject to such backup withholding).
Persons signing as representatives or fiduciaries of corporations,
partnerships, trusts or other organizations are required to furnish corporate
resolutions or similar documents providing evidence that they are authorized
to effect securities transactions on behalf of the Investor (alternatively,
the secretary or designated officer of the organization may certify the
authority of the persons signing on the space provided below). In addition,
signatures of representatives or fiduciaries of corporations and other
entities must be accompanied by a signature guarantee by a commercial bank
that is a member of the Federal Deposit Insurance Corporation, a trust
company, or a member of a national securities exchange.
X
________________________________ ___________ _____________________________
SIGNATURE (OWNER, TRUSTEE, ETC.) DATE PRINT NAME
X
________________________________ ___________ _____________________________
SIGNATURE (JOINT OWNER, DATE PRINT NAME
CO-TRUSTEE, ETC.)
X
________________________________ ___________ _____________________________
SIGNATURE (JOINT OWNER, DATE PRINT NAME
CO-TRUSTEE, ETC.)
Call the Markman Multifunds with questions 1-800-707-2771 1/96
<PAGE>
IRA APPLICATION
Logo: The Markman MultiFunds
The Markman MultiFunds
Shareholders Services
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1-800-707-2771
- ------------------------------------------------------------------------------
1 INVESTMENT INFORMATION Select Fund(s) and fill in amounts
o Conservative Growth Fund 57-______________ ($25,000 minimum)
o Moderate Growth Fund 58-______________ ($25,000 minimum)
o Aggressive Growth Fund 59-______________ ($25,000 minimum)
o Total amount being invested. __________________ Do not send cash
Payment:
o Check or draft: Please attach your check to this application, payable to
the applicable Fund.
o Bank Wire: For wire instructions please call 1-800-707-2771
o Direct Transfer: Funds will be transferred directly from another IRA or
retirement plan.
(PLEASE COMPLETE AND ENCLOSE AN IRA TRANSFER FORM (INCLUDED IN THIS KIT) AND
ATTACH A RECENT COPY OF YOUR IRA STATEMENT.)
2 HOW DO YOU WANT YOUR ACCOUNT REGISTERED?
________________________________ __________________ _______________________
NAME (FIRST, INITIAL, LAST) SOCIAL SECURITY # DATE OF BIRTH (M-D-Y)
( ) ( )
________________________________ __________________ _______________________
STREET OR P.O. BOX HOME PHONE BUSINESS PHONE
________________________________
CITY/STATE/ZIP Citizen of U.S.? o Yes o No COUNTRY
<PAGE>
3 PLEASE DESCRIBE YOUR IRA
CHOOSE IRA TYPE BELOW:
o Rollover IRA o SEP IRA o Regular IRA
TYPE OF CONTRIBUTION:
DIRECT TRANSFER
o I would like to transfer funds directly from an existing IRA to MMFT.
(Please also complete an IRA Transfer Request.)
o I am enclosing a check from my former employer's qualified retirement plan
or from my present IRA provider made payable to MMFT.
o My former employer's qualified retirement plan will send a check directly to
MMFT, made payable to MMFT.
60-Day Rollover
o I have received a check made payable to me from an existing IRA. A check is
enclosed and endorsed/made payable to MMFT.
o I have received a check made payable to me from my former employer's
qualified retirement plan. A check is enclosed and endorsed/made payable to
MMFT.
- ---------------------------------------------------------------
FOR MIDWEST USE ONLY
Accepted: The Fifth Third Bank ACCEPTED: MGF SERVICE CORP.
BY: /S/ __________________ DATE: _________BY: __________ DATE: _________
Call the Markman Multifunds with questions 1-800-707-2771
PLEASE COMPLETE THE REVERSE SIDE
<PAGE>
IRA APPLICATION
4 DESIGNATE YOUR BENEFICIARY(IES)
PRIMARY BENEFICIARY(IES):
I designate the person(s) named below as primary beneficiary(ies), to receive
payment of the value of my IRA upon my death. Percentages must be in whole
percentages and must total 100%.
1. _________% ____________________________________ ___________________________
PERCENT NAME (FIRST, INITIAL, LAST) RELATIONSHIP
__________________________ __________________________
SOCIAL SECURITY # DATE OF BIRTH (M-D-Y)
______________________________________________________________________________
ADDRESS
2. _________% ____________________________________ ___________________________
PERCENT NAME (FIRST, INITIAL, LAST) RELATIONSHIP
__________________________ __________________________
SOCIAL SECURITY # DATE OF BIRTH (M-D-Y)
______________________________________________________________________________
ADDRESS
SECONDARY BENEFICIARY(IES):
I designate the person(s) named below as secondary beneficiary(ies) to receive
payment of the value of my IRA if there is/are no primary beneficiary(ies)
living at the time of my death. Percentages must be in whole percentages and
must total 100%.
1. _________% ____________________________________ ___________________________
PERCENT NAME (FIRST, INITIAL, LAST) RELATIONSHIP
__________________________ __________________________
SOCIAL SECURITY # DATE OF BIRTH (M-D-Y)
______________________________________________________________________________
ADDRESS
2. _________% ____________________________________ ___________________________
PERCENT NAME (FIRST, INITIAL, LAST) RELATIONSHIP
__________________________ __________________________
SOCIAL SECURITY # DATE OF BIRTH (M-D-Y)
______________________________________________________________________________
ADDRESS
Note: If any beneficiary is a Trust, please indicate the Trust's name, date of
the Trust, and the Trustee(s) name(s).
Please list any additional beneficiaries on a separate sheet and attach to
this form.
5 SYSTEMATIC WITHDRAWAL OPTION
MMFT also offers the Systematic Withdrawal Plan for regular interval
withdrawals.
Please call 1-800-707-2771 for more information.
<PAGE>
6 SIGNATURE OF HOLDER AND TAXPAYER CERTIFICATION
The undersigned certifies that I am of legal age and have full authority and
legal capacity to purchase shares of the Fund(s) and affirm that (1) I have
read the Prospectus(es) and agree to its (their) terms; (2) I appoint MGF
Service Corp. or any successor as Custodian of my account; (3) I acknowledge
having received and read the IRA Custodial Agreement and Disclosure Statement
which is incorporated herein by reference; (4) I understand that by signing
below: (a) all information provided in the above items (if applicable) will
apply to any Fund into which my shares may be exchanged now or in the future;
(b) I hereby ratify any instructions given on this account and/or any account
into which I exchange relating to the above items and agree that neither the
Fund(s) nor the Transfer Agent will be liable for any loss, cost or expense
for acting upon such instructions (by telephone or in writing) believed by it
to be genuine and in accordance with the procedures described in the
Prospectus; (c) my responsibility is to read the Prospectus of any Fund into
which I exchange; and (d) as required by federal law, I CERTIFY UNDER
PENALTIES OF PERJURY THAT THE SOCIAL SECURITY NUMBER PROVIDED ON THIS FORM IS
CORRECT.
X
SIGNATURE
DATE
Call the Markman Multifunds with questions 1-800-707-2771 1/96
<PAGE>
IRA TRANSFER REQUEST
Logo: The Markman MultiFunds
The Markman MultiFunds
Shareholders Services
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1-800-707-2771
Please complete this form if you wish to transfer an existing IRA to The
Markman MultiFunds directly from another institution.
We will handle all details of the transfer process for you. Please print
carefully or type all information on this form.
When completed, please forward this form in the postage-paid envelope or send
(along with an IRA Application if this is a new account) to: The Markman
MultiFunds, P.O.Box 5354, Cincinnati, Ohio 45201-5354.
- ---------------------------------------------------------------
1 NAME AND ADDRESS
_______________________________ __________________ _____________________
NAME (FIRST, INITIAL, LAST) SOCIAL SECURITY # DATE OF BIRTH (M-D-Y)
( ) ( )
_______________________________ __________________ _____________________
STREET OR P.O. BOX HOME PHONE BUSINESS PHONE
_______________________________
CITY /STATE / ZIP
2 INFORMATION ABOUT THE IRA TO BE TRANSFERRED
________________________________________
NAME OF FINANCIAL INSTITUTION (FI)
________________________________________
ADDRESS
________________________________________
CITY/STATE/ZIP
(________) _____________________________
PHONE NUMBER
________________________________________
CURRENT ACCOUNT NUMBER(S)
PLEASE ATTACH A COPY OF YOUR CURRENT IRA ACCOUNT STATEMENT.
TYPE OF ACCOUNT TOTAL OR
TO BE TRANSFERRED: PARTIAL TRANSFER:
o Regular IRA o Total
o Rollover IRA* o Partial (Amount: $____________)
o SEP IRA
*A Rollover IRA is an IRA initiated using a distribution
from an employer-sponsored retirement or thrift plan.
If you are 701/2 or older you may not transfer your Required Minimum
Distribution to any IRA. Please make arrangements with your current Trustee or
Custodian to take your Required Minimum Distribution.
<PAGE>
3 Invested in CDs? If so, complete this section
Timing of transfer (CDs only):
________________________________________
o Process at date of maturity DATE OF MATURITY
________________________________________
o Process immediately NAME OF CONTACT AT FINANCIAL INSTITUTION
(I am aware of any penalties that may apply)
PLEASE SEND US THIS TRANSFER AT LEAST TWO WEEKS PRIOR TO THE MATURITY DATE OF
YOUR CD.
Call the Markman Multifunds with questions 1-800-707-2771
PLEASE COMPLETE THE REVERSE SIDE
<PAGE>
IRA TRANSFER REQUEST
4 INVESTMENT INFORMATION Select Fund(s) and fill in amounts
o Conservative Growth Fund 57-_____________ ($25,000 minimum)
o Moderate Growth Fund 58-_____________ ($25,000 minimum)
o Aggressive Growth Fund 59-_____________ ($25,000 minimum)
o Total amount being invested ________________
TRANSFER TO NEW OR EXISTING MMFT ACCOUNTS
o New (PLEASE ENCLOSE COMPLETED IRA ACCOUNT APPLICATION)
o Existing IRAs
(Account number[s]): _________________________________________________________
5 Please sign here to Authorize the ira Transfer
AUTHORIZATION OF YOUR CURRENT TRUSTEE OR CUSTODIAN TO TRANSFER YOUR IRA TO THE
MARKMAN MULTIFUNDS.
Resigning Trustee or Custodian: Please make a partial or total liquidation of
my account as described above and remit the proceeds of the liquidation to The
Markman MultiFunds.
Important: Your financial institution may require your signature to be
guaranteed. Please call them for requirements. If required, signature
guaranteed by:
X
___________________________________ ___________ ______________________________
SIGNATURE DATE NAME OF FINANCIAL INSTITUTION
X
______________________________
SIGNATURE OF OFFICER AND TITLE
Call the Markman Multifunds with questions 1-800-707-2771 1/96
<PAGE>
The Markman MultiFunds
IMPORTANT INFORMATION
INVESTMENT ADVISER
Markman Capital Management, Inc.
6600 France Avenue South
Suite 565
Edina, Minnesota 55435
ADMINISTRATOR AND TRANSFER AGENT
MGF Service Corp.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
CUSTODIAN
Fifth Third Bank, N. A.
38 Fountain Square Plaza
Cincinnati, Ohio 45202
INDEPENDENT ACCOUNTANTS
Arthur Andersen LLP
425 Walnut Street
Cincinnati, Ohio 45202
LEGAL COUNSEL
Sullivan & Worcester
One Post Office Square
Boston, Massachusetts 02109
IMPORTANT TELEPHONE NUMBERS:
HOTLINE: 1-800-975-LINE
(1-800-975-5463)
For a current update on our views on the market and what funds are in each of
the portfolios
1-800-2DAISY2
(1-800-232-4792)
To order additional prospectuses
1-800-707-2771
For additional application forms, help completing an application, or
administrative questions.
AUTHORIZED FOR DISTRIBUTION ONLY IF PRECEDED OR ACCOMPANIED BY A CURRENT
PROSPECTUS.
Logo: The Markhan MultiFunds
<PAGE>
Investment Adviser
Markman Capital Management, Inc.
6600 France Ave. So., Suite 565
Edina, Minnesota 55435
Telephone: 612-920-4848
Toll-free: 1-800-395-4848
Shareholder Services
c/o MGF Service Corp.
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202-3874
Telephone: 513-629-2070
Toll-free: 1-800-707-2771
Logo 100% NO-LOAD MUTUAL FUND COUNCIL
<PAGE>
Logo: The Markhan MultiFunds
P.O. Box 5354
Cincinnati, Ohio 45201-5354
FIRST CLASS
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