A MESSAGE FROM THE UNIFIED FUNDS
Dear Shareholders,
Thank you for investing in The Unified Funds!
Since the early 1990s, the mutual fund industry has grown in excess of 26% per
year and total mutual fund assets now total nearly $6 trillion. Despite the
strength in long-term mutual fund cash flows, the principal reason for this
growth has been market appreciation. Since the end of 1994, over 60% of
long-term mutual fund asset growth has been due to market appreciation. It is,
therefore, no surprise that the fastest growing long-term mutual fund asset
class has been, and is currently, equities. Since the end of 1994, equities have
grown at an average annual rate of 36%, while long-term bonds have grown at only
15% per year. While the industry overall has grown at such an explosive rate,
growth within individual fund complexes is becoming increasingly difficult due
predominantly to the loss of market share to the index funds, and, to the power
of distributors.
The index fund phenomenon has become something of a self-fulfilling prophecy.
The equity index funds have tended to outperform their brethren and this
outperformance tends to attract more investors, thereby pushing up the stock
prices in the index, and so on. Index funds have increased their share of assets
to approximately 6.6% compared to only 2% in 1993. More importantly, index funds
now command a startlingly high 19% of all net new cash flow compared to only 3%
in 1993.
The indexes have also outperformed 80% of actively managed funds for most of
this decade. As a result, index mutual funds have been consistently and
continually gaining market share in our industry. Within the index phenomenon,
the S&P Index Funds command the largest market share. Another trend of note is
that Internet brokers seem to be attracting retail customers away from investing
in mutual funds and into individual stocks, especially Internet stocks. The
migration of retail customers to the Internet could be the principal reason why
cash flows into long term mutual funds declined during this past year.
Partially due to these trends, we have provided the Unified Select Series for
you, consisting of six 35 basis point select index funds, a yield-oriented money
market fund, and an Internet Fund, and we are most excited about the potential
of this series.
The Select 30 Index Fund seeks to track the performance of the Dow Jones
Industrial Average, which is made up of stocks of 30 companies. The Select 500
Index Fund seeks to track the performance of the Standard & Poor's 500 Composite
Stock Index, which emphasizes stocks of larger companies. The Select 2000 Index
Fund seeks to track the performance of the Russell 2000 Index, which is made up
of stocks of small, generally unseasoned U.S. companies. The Select
International Equity Index Fund seeks to track the performance of the securities
in the Morgan Stanley Capital International Europe, Australia and Far East
Index. The Select REIT Index Fund seeks to track the performance of the Morgan
Stanley REIT Index, which is made up of stocks issued by real estate investment
trusts (known as REITs). The Select Bond Index Fund seeks to track the
performance of the Lehman Brothers Aggregate Bond Index, a broad market-weighted
index which encompasses U.S. Treasury and agency securities, investment grade
corporate bonds, international (dollar-denominated) investment grade bonds, and
mortgage-backed securities.
In addition to our six index funds, we have created the Unified Select Internet
Fund. It seeks long term capital appreciation by investing principally in
equities of Internet companies. With an expense ratio of 0.35%, it is believed
to have the lowest expense ratio of any Internet fund in the industry.
The Unified Funds and The Unified Select Series are particularly proud of our
innovative program, V.O.I.C.E.sm (Vision for Ongoing Investment in Charity and
Education)sm . The V.O.I.C.E.sm Program provides a means by which the individual
and institutional customers of The Unified Funds can cause contributions to be
made to educational, charitable, religious and other philanthropic
"not-for-profit" organizations at no cost to the shareholder or the Fund.
One of the primary focuses of the V.O.I.C.E.sm Program is to support and
supplement education in America by funding those not-for-profit organizations,
especially endowments, foundations and general scholarship funds, which assist
our universities and colleges. At a time when educational budgets are
consistently being reduced, it is our sincerest hope that V.O.I.C.E.sm will be
just one of the many ways that we can all give "a little bit of ourselves" back
to the community, its schools, colleges, universities and other not-for-profit
organizations.
<PAGE>
We maintain a positive long-term outlook on the stock market, but, keep in mind
that financial markets are not one-way streets. The short-term may be volatile
at times in response to news items and mood swings of investors. The Unified
Funds along with the Unified Select Series Funds are designed to provide you
with options for achieving a balanced portfolio of funds and an asset allocation
opportunity to assist you in meeting your long-term financial goals.
Our Unified fund family is well positioned for the future in the marketplace. We
have extremely attractive and inexpensive index choices, and we will continue to
provide you with innovative indexes that reach into special market sectors. We
also have an Internet Fund that is currently believed to be the least expensive
in the industry. It offers the investor a non-index choice that is invested in a
popular sector. We also have provided you with a balanced, asset allocation
product in the index-featured Asset Allocation fund-of-funds, and two money
market fund choices, one for service and one for yield. We are very excited
about the recent performance of our more traditional stock fund, the Starwood
Strategic Fund, and our Select Internet Fund. For 1999, Starwood returned 71.54%
and the Select Internet Fund from its inception on April 14th through year-end
returned 57.30%. The year-to-date return through March 31, 2000 for the Starwood
Strategic Fund was 6.62%, and for the Select Internet Fund was 11.06%. Both of
these Funds performed well due in part to the strength of the technology sector.
Although the fiscal year ended with some weakness in technology stocks, any
further weakness in the sector could negatively affect both funds.
In closing, we want to thank you for the opportunity to serve your investment
and philanthropic interests. Your business and personal relationship is
sincerely appreciated here, and we look forward to providing the highest quality
of service to you for many years to come.
Respectfully Submitted,
Timothy L. Ashburn, President
<PAGE>
INVESTMENTS-STARWOOD STRATEGIC FUND
-----------------------------------
Statement of Net Assets March 31, 2000 (Unaudited)
Number Market
of Shares Value
--------- -----
Common Stocks - 96.84%
----------------------
Biological Products - 4.38%
Biotech Holdrs Trust Depositary * 900 $ 152,100
Business Services - 2.15%
E-bay Inc. * 425 74,800
Communications Equipment - 10.43%
Nextel Communications Class A * 700 103,731
Qualcomm * 1,225 182,678
Tellabs Inc. * 1,200 75,525
Computer Services - 3.88%
CNET Networks, Inc. * 600 30,412
Safeguard Scientific Inc. 1,500 104,156
Computer Systems - 20.50%
Dell Computer Corp. * 1,000 54,000
Gateway Inc. * 1,700 90,100
International Business Machines 400 47,200
Oracle Corp. * 2,600 202,963
Sun Microsystems * 1,650 154,584
Yahoo Inc. * 950 162,806
Diversified Conglomerates - 2.74%
Doubleclick Inc. * 1,000 93,625
Emerge Interactive * 50 1,506
Drugs & Healthcare - 4.82%
Genentech, Inc. * 1,100 167,200
Electronics - 3.81%
XILINX Inc. * 1,600 132,400
Financial Services - 4.81%
CMGI Inc. * 1,475 167,136
Internet - 4.59%
America Online Inc. * 2,350 159,506
*Non-income producing securities
The accompanying notes are an integral part of these financial statements.
<PAGE>
Number Market
of Shares Value
--------- -----
Investment Co. - 3.00%
NASDAQ 100 Trust* 950 $ 104,025
Media - 1.57%
Time Warner Holdings 550 54,416
Retail - 0.77%
Amazon.com Inc. * 400 26,800
Software Products - 7.67%
BMC Software * 1,000 49,375
Peoplesoft Inc. * 2,500 49,844
Siebel Systems Inc. * 1,400 167,125
Telecommunications - 21.71%
Interdigital Communications
Corp. * 6,500 164,125
Nextlink Communications, Inc. * 1,000 123,625
Nokia Corporation 700 152,075
Nortel Networks Corp. 1,100 138,875
RCN Corp. * 1,250 67,266
Sprint PCS Group * 1,650 107,869
Total Common Stocks $ 3,361,848
-----------
(Cost $ 2,232,297)
Repurchase Agreements - 3.05%
-----------------------------
Firstar Bank ($106,500 FHLMC, 09/01/24) Purchase Date 03/31/00, Maturity
Date 04/01/00, Amount Payable at Maturity $106,012
Total Repurchase Agreements $ 106,000
------------
(Cost $ 106,000)
Total Investments - 99.89%
--------------------------
(Identified cost $2,338,297) $ 3,467,848
Other Assets and Liabilities, Net - 0.11%
------------------------------------------
Net Assets - 100% $ 3,471,715
===========
<PAGE>
INVESTMENTS-ASSET ALLOCATION FUND
---------------------------------
Statement of Net Assets March 31, 2000 (Unaudited)
Number Market
of Shares Value
--------- -----
Mutual Funds - 95.42%
-------------- ------
Vanguard Extended Market Index Fund 12,246 $ 485,085
Vanguard GNMA Fund 17,530 173,545
Vanguard 500 Index Fund 6,142 848,217
Vanguard Value Index Fund 6,587 147,803
Vanguard Growth Index Fund 4,061 166,407
Vanguard International Growth Fund 14,805 353,101
Vanguard REIT Index Fund 16,337 162,719
Vanguard Total Bond Market Index Fund 80,951 779,556
Total Mutual Funds
(Cost $2,771,086) $3,116,433
----------
Repurchase Agreements - 3.70%
-----------------------------
Firstar Bank ($121,028 FHLMC, 09/01/24)
Purchase Date 03/31/00, Maturity Date 04/03/00,
Amount Payable at Maturity $121,037
Total Repurchase Agreements
(Cost $121,000) $ 121,000
-----------
Total Investments - 99.12%
--------------------------
(Identified cost $2,892,086) $3,237,433
Other Assets and Liabilities, Net - 0.88% 28,647
----------------------------------------- -------------
Net Assets - 100% $ 3,266,080
===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<S> <C> <C>
INVESTMENTS-TAXABLE MONEY MARKET FUND
-------------------------------------
Statement of Net Assets March 31, 2000 (Unaudited)
Par Value Value (Note 2)
--------- --------------
Commercial Paper - 59.99%
-------------------------
General Motors Acceptance Corporation 5.77%, 04/05/2000 2,000,000 $ 1,999,359
International Business Machines 5.78%, 04/10/2000 2,000,000 1,997,752
Met-Life Funding Inc. 5.93%, 04/11/2000 2,000,000 1,997,365
Ford Motor Credit Corporation 5.92%, 04/18/2000 2,000,000 1,995,067
Bell Atlantic 5.95%, 04/19/2000 2,000,000 1,994,711
Bell South Telecommunication 5.99%, 05/01/2000 2,000,000 1,990,682
Merrill Lynch 5.90%, 05/01/2000 2,000,000 1,990,924
Exxon Project Invst. 5.85%, 05/02/2000 2,000,000 1,990,575
Coca Cola Company 6.03%, 05/23/2000 2,000,000 1,983,250
Disney Walt Company 5.90%, 05/23/2000 2,000,000 1,983,611
General Electric Capital Corporation 5.90%, 05/30/2000 2,000,000 1,981,317
United Parcel Service 6.03%, 06/01/2000 2,000,000 1,980,235
Natural Rural Utilities 6.00%, 07/11/2000 2,000,000 1,967,000
Total Commercial Paper
(Cost $25,851,848) $25,851,848
-----------
U.S. Government Securities - 23.09%
-----------------------------------
Federal Home Loan Mortgage 5.70%, 04/24/2000 2,000,000 $ 1,993,350
Federal Home Loan Mortgage 5.70%, 04/25/2000 2,000,000 1,993,033
Federal Home Loan Mortgage 5.20%, 04/27/2000 2,000,000 1,993,067
Federal Home Loan Mortgage 5.77%, 06/13/2000 2,000,000 1,977,241
Federal National Mortgage Association 5.69%, 04/27/2000 2,000,000 1,994,626
Total U.S. Government Securities
(Cost $9,951,317) $9,951,317
---------
Repurchase Agreements - 15.90%
------------------------------
Firstar Bank ($6,850,000 FHLMC, 09/01/24) Purchase Date
03/31/00, Maturity Date 04/01/00, Amount Payable at Maturity $6,850,231
Total Repurchase Agreements
---------------------------
(Cost $6,850,000) $ 6,850,000
Total Investments - 98.98%
(Amortized cost $42,653,165) $42,653,165
Other Assets and Liabilities, Net - 1.02% 440,773
------------------------------------------ --------------
Net Assets - 100% $43,093,939
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTMENTS-SELECT INTERNET FUND
--------------------------------
Statement of Net Assets March 31, 2000 (Unaudited)
Number Market
of Shares Value
--------- -----
Common Stocks - 97.20%
----------------------
Business Services - 2.20%
------------------- -----
Medialink Worldwide * 12,500 $ 81,250
Communication Equipment - 9.63%
-------------------------------
CCOR Electronics * 3,800 186,200
Qualcomm * 1,140 170,002
Computer Equipment/Services - 29.17%
------------------------------------
Ariba Inc. * 1,050 220,106
CNET Networks, Inc. * 2,510 127,226
Earthlink Inc. Com * 6,043 117,461
Exodus Communications Inc.* 2,400 337,500
Safeguard Scientific Inc. * 2,910 202,063
Sportsline USA, Inc. * 2,535 74,624
Computer Systems - 16.67%
-------------------------
Cisco Systems Inc. * 1,800 138,600
Inktomi Corporation * 1,300 253,500
PSINet Inc. * 2,162 73,542
Yahoo Inc. * 880 150,810
Electronics - 1.35%
-------------------
Plexus Corp. * 750 49,969
Financial Services - 4.96%
--------------------------
CMGI Inc. * 1,620 183,566
<PAGE>
Number Market
of Shares Value
--------- -----
Internet - 5.60%
---------- -----
America Online Inc.* 2,630 $ 178,511
GO.com * 1,414 28,634
Software Products - 11.94%
--------------------------
Bottomline Technologies Inc. * 2,585 94,676
Network Associates * 3,703 119,422
Open Market Inc. * 2,815 72,486
Siebel Systems Inc. * 1,300 155,187
Telecommunications - 15.68%
---------------------------
Global Crossing * 2,710 111,110
JDS Uniphase Corp. * 1,360 163,965
Level 3 Comm * 1,270 134,303
RCN Corp. * 1,700 91,481
Sycamore Networks * 615 79,181
Total Common Stocks $ 3,595,375
-----------
(Cost $ 2,412,197)
Total Investments - 97.20%
(Identified cost $2,412,197) $ 3,595,375
Other Assets and Liabilities, Net - 2.80% $ 103,412
----------------------------------------- ------------
Net Assets - 100% $ 3,698,787
===========
*Non-income producing securities.
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTMENTS-SELECT 30 INDEX FUND
--------------------------------
Statement of Net Assets March 31, 2000 (Unaudited)
Number Market
of Shares Value
--------- -----
Mutual Funds - 87.07%
---------------------
Orbitex Focus 30 Fund * 2,261 $ 45,397
Total Mutual Funds
(Cost $48,093) $ 45,397
--------
Total Investments - 87.07%
(Identified cost $48,093) 45,397
Assets and Liabilities, Net - 12.93% 6,740
--------------------------------------- ---------
Net Assets - 100% $ 52,137
========
INVESTMENTS-SELECT 500 INDEX FUND
---------------------------------
Statement of Net Assets March 31, 2000 (Unaudited)
Number Market
of Shares Value
--------- -----
Mutual Funds - 29.93%
---------------------
Vanguard 500 Index Fund 98 $ 13,516
Total Mutual Funds
(Cost $12,081) $ 13,516
--------
Total Investments - 29.93%
--------------------------
(Identified cost $12,081) 13,516
Other Assets and Liabilities, Net - 70.07% 31,639
------------------------------------------- --------
Net Assets - 100% $ 45,155
========
*Non-income producing securities.
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTMENTS-SELECT 2000 INDEX FUND
----------------------------------
Statement of Net Assets March 31, 2000 (Unaudited)
Number Market
of Shares Value
--------- -----
Mutual Funds - 57.80%
---------------------
Vanguard Small-Cap Index Fund 335 $ 8,386
Total Mutual Funds
(Cost $7,445) $ 8,386
-------
Total Investments - 57.80%
--------------------------
(Identified cost $7,445) $ 8,386
Other Assets and Liabilities, Net - 42.20% 6,123
------------------------------------------ --------
Net Assets - 100% $14,509
=======
INVESTMENTS-SELECT INTERNATIONAL EQUITY INDEX FUND
--------------------------------------------------
Statement of Net Assets March 31, 2000 (Unaudited)
Number Market
of Shares Value
--------- -----
Mutual Funds - 82.41%
---------------------
Vanguard International Growth Fund 194 $ 4,629
Total Mutual Funds
(Cost $4,012) $ 4,629
-------
Total Investments - 82.41%
--------------------------
(Identified cost $4,012) 4,629
Other Assets and Liabilities, Net - 17.59% 988
------------------------------------------- --------
Net Assets - 100% $5,617
======
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTMENTS-SELECT REIT INDEX FUND*
-----------------------------------
Statement of Net Assets March 31, 2000 (Unaudited)
Total Investments - 0.00%
-------------------------
(Identified cost $0.00) $ ----
Other Assets and Liabilities, Net - 100.00% ----
------------------------------------------- ----
Net Assets - 100% $ ----
====
* Investment in accordance with objective had not commenced at this time.
INVESTMENTS-SELECT BOND INDEX FUND*
-----------------------------------
Statement of Net Assets March 31, 2000
Total Investments - 0.00%
-------------------------
(Identified cost $0.00) $ ----
Other Assets and Liabilities, Net - 100.00% ----
------------------------------------------- ----
Net Assets - 100% $ ----
====
* Investment in accordance with objective had not commenced at this time.
INVESTMENTS-SELECT MONEY MARKET FUND*
-------------------------------------
Statement of Net Assets March 31, 2000
Total Investments - 0.00%
-------------------------
(Identified cost $0.00) $ ----
Other Assets and Liabilities, Net - 100.00% ----
------------------------------------------- -----
Net Assets - 100% $ ----
=====
* Investment in accordance with objective had not commenced at this time.
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
------------------------------------
As of March 31, 2000 (Unaudited)
<TABLE>
<S> <C> <C> <C>
Taxable
Starwood Asset Money
Strategic Allocation Market
Fund Fund Fund
---- ---- ----
ASSETS
Investments, at value (Note 2) ........ $ 3,467,848 $ 3,237,433 $ 42,653,165
Cash ................................. 2,538 1383 732,670
Dividend receivable ................... 511 5,099 ---
Interest receivable ................ 33 23,187 2,141
Other assets........................... 1,479 --- 2,161
------------- ---------------- --------------
Total assets .......................... 3,472,409 3,267,102 43,390,137
LIABILITIES
Accrued expenses (Note 2).............. 694 1,022 296,199
--------------- ------------- -------------
Total liabilities ..................... 694 1,022 296,199
--------------- ------------- -------------
NET ASSETS ................................. $ 3,471,715 $ 3,266,080 $ 43,093,939
========== ========== ==========
Net assets consist of:
Paid-in capital ....................... 2,468,925 2,953,159 43,093,939
Undistributed net investment income (loss) --- --- ---
Accumulated undistributed net realized gain
on investments .................. (126,761) (32,426) ---
Net unrealized appreciation (depreciation) in
value of investments............. 1,129,551 345,347 ---
----------- ----------- -------------
Net assets ................................. $ 3,471,715 $ 3,266,080 $ 43,093,939
========== ========== ===========
Shares of capital stock
outstanding (no par value,
unlimited shares authorized)........... 224,557 292,206 43,093,939
Net asset value per share, offering
and redemption price .................. $ 15.46 $ 11.18 $ 1.00
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
------------------------------------
As of March 31, 2000 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Select
International
Select 30 Select 500 Select 2000 Equity
Index Fund Index Fund Index Fund Index Fund
---------- ---------- ---------- ----------
ASSETS
Investments, at value (Note 2) ........ $ 45,397 $ 13,516 $ 8,386 $ 4,629
Cash ................................. 819 31,569 6,055 990
Dividend receivable ................... 5,927 82 72 ---
Receivable for shares sold.......... --- --- --- ---
------------- ------------- ------------- -------------
Total assets .......................... 52,143 45,167 14,513 5,619
LIABILITIES
Accrued expenses (Note 2).............. 6 12 5 2
------------- ------------ ------------ -------------
Total liabilities..................... 6 12 5 2
- -- - -
NET ASSETS ................................. $ 52,137 $ 45,155 $ 14,509 $ 5,617
========= ======== ======== ==========
Net assets consist of:
Paid-in capital ....................... 48,960 42,791 12,440 3,958
Undistributed net investment income (loss) --- --- --- ---
Accumulated undistributed net realized gain
on investments ................... 5,874 929 1,128 1,042
Net unrealized appreciation (depreciation) in
value of investments ............. (2,697) 1,435 941 617
------ ----- --- ---
Net assets ................................. $ 52,137 $ 45,155 $ 14,509 $ 5,617
======== ======== ======== ==========
Shares of capital stock
outstanding (no par value,
unlimited shares authorized)........... 4,989 4,093 1,185 463
Net asset value per share, offering
and redemption price .................. $ 10.45 $ 11.03 $ 12.24 $ 12.14
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
------------------------------------
As of March 31, 2000 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Select REIT Select Bond Select Internet Select Money
Index Fund (a) Index Fund (a) Fund Market Fund (a)
--------------- --------------- ---------------- ---------------
ASSETS
Investments, at value (Note 2) ........ $ --- $ --- $ 3,595,375 $ ---
Cash ................................. --- --- 104,382 ---
Other assets .......................... --- --- 6 ---
Other receivable....................... --- --- 240 ---
---------- ---------- ------------- ---------
Total assets .......................... --- --- 3,699,997 ---
LIABILITIES
Accrued expenses (Note 2).............. --- --- 1,210 ---
---------- ----------- ------------ ----------
Total liabilities..................... --- --- 1,120 ---
---------- ----------- ------------ ----------
NET ASSETS ................................. $ --- $ --- $ 3,698,787 $ ---
========== =========== ========== ==========
Net assets consist of:
Paid-in capital ....................... --- --- 2,313,023 ---
Undistributed net investment income.... --- --- --- ---
Undistributed net realized gain
on investments ................... --- --- 202,586 ---
Net unrealized appreciation (depreciation) in
............ value of investments --- --- 1,183,178 ---
------- ---------- ----------- ----------
Net assets ................................. $ --- $ --- $ 3,698,787 $ ---
========== ========== =========== ==========
Shares of capital stock
outstanding (no par value,
unlimited shares authorized)........... --- --- 211,780 ---
Net asset value per share, offering
and redemption price .................. $ --- $ --- $ 17.47 $ ---
(a) Investment in accordance with objective had not commenced at this time.
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
For the six months ended March 31, 2000 (Unaudited)
<TABLE>
<S> <C> <C> <C>
Taxable
Starwood Asset Money
Strategic Allocation Market
Fund Fund Fund
---- ---- ----
INVESTMENT INCOME:
Interest .............................. $ 1,848 $ 2,837 $ 1,242,084
Dividends ............................. 1,342 136,229 ---
Miscellaneous ......................... 247 --- ---
------------ ---------- ------------
Total net income ................. 3,437 139,066 1,242,084
----------- ---------- ---------
EXPENSES:
Investment adviser fees (Note 3) ...... 9,738 12,229 210,995
12b-1 fees (Note 3).................... 1,175 1,898 23,444
Shareholder servicing fees (Note 2) ... 1,762 2,849 35,166
----------- ----------- -----------
Total net expenses ................ 12,675 16,976 269,605
---------- ---------- ----------
NET INVESTMENT INCOME (LOSS) ............... (9,238) 122,090 972,479
------------ ---------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments 73,714 (117,040) ---
Net realized gains from other
investment companies ............. --- --- ---
Change in net unrealized
appreciation of investments ...... 874,841 489,365 ---
---------- --------- ---------
Net gain (loss) on investments ........ 948,555 372,325 ---
---------- --------- ---------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............. $ 939,317 $ 494,415 $ 972,479
========= ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
------------------------
For the six months ended March 31, 2000 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Select
Select 30 Select 500 Select 2000 International
Index Index Index Equity Index
Fund Fund Fund Fund
---- ---- ---- ----
INVESTMENT INCOME:
Interest............................... $ --- $ --- $ --- $ ---
Dividends.............................. 5,927 110 814 353
Miscellaneous Income .................. --- --- --- ---
--------- --------- ------- -------
Total net income .................. 5,927 110 814 353
-------- ------- ----- -----
EXPENSES:
Investment adviser fees (Note 3) ...... 103 41 22 22
Total net expenses ................ 103 41 22 22
---------- -------- -------- -------
NET INVESTMENT INCOME (LOSS) ............... 5,824 69 792 331
--------- -------- ------- ------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments 93 780 345 712
Net realized gains from other
investment companies.............. --- --- --- ---
Change in net unrealized
appreciation of investments ...... (969) 2,166 988 687
--------- ------ -------- ------
Net gain (loss) on investments ........ (867) 2,946 1,333 1399
--------- ------ ------- -----
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............. $ 4,948 $ 3,015 $ 2,125 $ 1,730
======= ====== ====== ======
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
For the six months ended March 31, 2000 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Select
Select Select Select Money
REIT Index Bond Index Internet Market
Fund (a) Fund (a) Fund Fund (a)
-------- -------- ---- --------
INVESTMENT INCOME:
Interest .............................. $ --- $ --- $ --- $ ---
Dividends ............................. --- --- 16 ---
Miscellaneous Income ............... --- --- 344 ---
------- ------- ------ ------
Total net income .................. --- --- 360 ---
------- ------- ----------- ------
EXPENSES:
Investment adviser fees (Note 3) ...... --- --- 4,991 ---
Total net expenses ................ --- --- 4,991 ---
-------- ------- ----------- -------
NET INVESTMENT INCOME (LOSS) ............... --- --- (4,631) ---
-------- ------- ----------- -------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments --- --- 227,985 ---
Net realized gains from other
investment companies.............. --- --- --- ---
Change in net unrealized
appreciation of investments ...... --- --- 1,300,165 ---
--------- -------- ---------- -------
Net gain (loss) on investments ........ --- --- 1,528,150 ---
--------- -------- ---------- -------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............. $ --- $ --- $ 1,523,519 $ ---
========= ======== =========== =======
</TABLE>
(a) Investment in accordance with objective had not commenced at this time.
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Starwood Strategic Fund Asset Allocation Fund
----------------------- ---------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
March 31, Sept 30, March 31, Sept 30,
2000 1999 2000 1999
---- ---- ---- ----
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ................... $ (9,238) $ (7,544) $ 122,090 $ 156,326
Net realized gain (loss) on investments ........ 73,714 53,568 (117,040) 306,402
Change in net unrealized appreciation of investments 874,841 266,771 489,365 178,563
Net Increase (Decrease) in net assets resulting from
operations 939,317 312,795 494,415 641,291
Dividends and distributions to shareholders from:
Net realized gains ........................... (185,335) (195,436) (308,952) (31,835)
Net investment Income .......................... --- --- (41,508) (156,190)
--------- --------- ----------- ---------
TOTAL INCREASE (DECREASE) ........................... 753,982 117,359 143,955 453,266
Capital share transactions:
Proceeds from shares sold ...................... 1,089,291 670,819 365,010 1,034,375
Value of shares issued to shareholders in
reinvestment of dividends and distributions 183,032 193,107 349,832 219,471
----------- --------- ---------- -----------
1,272,323 863,926 714,842 1,253,846
Cost of shares redeemed .................. (39,082) (499,857) (2,150,688) (3,490,514)
----------- --------- ----------- -----------
Net increase in net assets resulting from
capital share transactions ................ 1,233,241 364,069 (1,435,846) 2,236,668
--------- --------- ----------- ---------
TOTAL INCREASE (DECREASE) IN NET ASSETS.............. 1,987,223 481,428 (1,291,891) (1,783,402)
NET ASSETS:
Beginning of period ............................ 1,484,492 1,003,064 4,557,971 6,341,373
--------- --------- --------- ---------
End of period (including undistributed
net investment income/net investment loss) $ 3,471,715 $ 1,484,492 $ 3,266,080 $ 4,557,971
========= ========= ========= =========
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... 71,535 66,011 32,730 92,279
Shares issued to shareholders in reinvestment of
dividends and distributions ............... 12,693 20,922 32,386 19,619
---------- ---------- ---------- ----------
84,228 86,933 65,116 111,898
Shares redeemed.................... (3,094) (50,886) (184,656) (309,604)
---------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NUMBER OF
SHARES OUTSTANDING ................. 81,134 36,047 (119,540) (197,706)
============ ========== ========== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
(Unaudited)
<TABLE>
<S> <C> <C>
Taxable Money Market Fund
-------------------------
Six Months Year
Ended Ended
March 31, Sept 30,
2000 1999
---- ----
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ................... $ 972,479 $ 2,139,865
Net realized gain (loss) on investments ........ --- (2,162)
Change in net unrealized appreciation of investments. --- ---
-------- ---------
Change in net unrealized appreciation of investment --- ---
-------- ---------
Net Increase (Decrease) in net assets resulting from operations 972,479 2,137,703
Dividends and distributions to shareholders from
Net realized gains.............................. --- ---
Net investment income .......................... (972,479) (2,139,865)
------------- -------------
Net realized gain of investments .................... --- ---
------------ ------------
TOTAL INCREASE (DECREASE) ...................... (7,282) (26,650)
--------- ---------
TOTAL INCREASE (DECREASE)............................ --- (2,162)
Capital share transactions:
Proceeds from shares sold ...................... 74,082,940 137,800,780
Value of shares issued to shareholders in
reinvestment of dividends and distributions 569,773 2,095,974
---------- ------------
74,652,713 139,896,754
Cost of shares redeemed ............................ (83,971,856) (153,056,816)
------------- -------------
Net increase in net assets resulting from
Net increase in net assets resulting from
capital share transactions ................ (9,319,143) (13,160,062)
------------ -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............. (9,319,143) (13,162,224)
NET ASSETS:
Beginning of period ........................... 52,413,083 65,575,307
----------- ------------
End of period (including undistributed net
investment income/net investment loss) ... $ 43,093,939 $ 52,413,083
========== ============
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... 74,082,940 137,798,618
Shares issued to shareholders in reinvestment of
dividends and distributions ............... 569,773 2,095,974
------------- --------------
74,652,713 139,894,592
Shares redeemed ............................. (83,971,856) (153,056,816)
------------- -------------
NET INCREASE (DECREASE) IN NUMBER OF
SHARES OUTSTANDING ............................. (9,319,143) (13,162,224)
============== =============
</TABLE>
The accompanying notes are an integral part of these financial statements
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Select 30 Select 500
Index Fund Index Fund
---------- ----------
Six Months Period Six Months Period
Ended Ended Ended Ended
March 31, Sept 30, March 31, Sept 30,
2000 1999(a) 2000 1999(a)
---- ---- ---- ----
----
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ................... $ 5,824 $ (43) $ 69 $ 78
Net realized gain (loss) on investments ........ 93 --- 780 ---
Change in net unrealized appreciation of investment (969) (1,728) 2,166 (731)
---- ------ ----- ----
Net Increase (Decrease) in net assets resulting from operations 4,948 (1,771) 3,015 (653)
Dividends and distributions to shareholders from
Net realized gains.............................. --- --- --- ---
Net investment income .......................... --- --- --- ---
----------- ---------- --------- --------
TOTAL INCREASE (DECREASE)......................... 4,948 --- 3,015 ---
Capital share transactions:
Proceeds from shares sold ...................... 69,303 60,322 35,798 26,260
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
------ ------ ------ -------
69,303 60,322 35,798 26,260
Cost of shares redeemed ............................ (72,922) (7,743) (17,415) (1,850)
--------- --------- -------- --------
Net increase in net assets resulting from
capital share transactions ................ (3,619) 52,579 18,381 24,410
--------- --------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS............. 1,329 50,808 21,398 23,757
NET ASSETS:
Beginning of period ............................ 50,808 --- 23,757 ---
------ ------ ------ ------
End of period (including undistributed net
investment income/net investment loss) ... $ 52,137 $ 50,808 $ 45,155 $ 23,757
======== ========= ========== =========
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... 6,896 6,065 3,322 2,608
Shares issued to shareholders in reinvestment of
dividends and distributions ............... --- --- --- ---
--------- ---------- ----------- ----------
6,896 6,065 3,322 2,608
Shares redeemed.......................... (7,197) (775) (1,649) (188)
--------- ---------- ----------- ---------
NET INCREASE (DECREASE) IN NUMBER OF
SHARES OUTSTANDING ............................. (301) 5,290 1,673 2,420
========== ========= ========== ==========
</TABLE>
(a) For the period March 1, 1999 (commencement of operations) to September 30,
1999.
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Select 2000 Select International
Index Fund Equity Index Fund
---------- -----------------
Six Months Period Six Months Period
Ended Ended Ended Ended
March 31, Sept 30, March 31, Sept 30,
2000 1999(a) 2000 1999(a)
---- ------- ---- -------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ................... $ 792 $ (9) $ 331 $ ---
Net realized gain (loss) on investments ........ 345 --- 712 ---
Change in net unrealized appreciation of investment 988 (47) 687 (71)
------ -------- ------------ ------
Net Increase (Decrease) in net assets resulting from
operations..................................... 2,125 (56) 1,730 (71)
Dividends and distributions to shareholders from
Net realized gains.............................. --- --- --- ---
Net investment income .......................... --- --- --- ---
----- ------- ------ -------
TOTAL INCREASE (DECREASE)............................ 2,125 --- 1,730 ---
Capital share transactions:
Proceeds from shares sold ...................... 8,400 9,670 2,473 9,323
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
---------- -------- ----- -------
8,400 9,670 2,473 9,323
Cost of shares redeemed ............................ (5,364) (266) (5,338) (2,500)
-------- -------- ----- --------
Net increase in net assets resulting from
Net increase in net assets resulting from
capital share transactions ................ 3,036 9,404 (2,865) 6,823
----- -------- ------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............ 5,161 9,348 (1,135) 6,752
NET ASSETS:
Beginning of period ............................ 9,348 --- 6,752 ---
----- ----------- ------ -----------
End of period (including undistributed net......
investment income/net investment loss) ... $14,509 $ 9,348 $ 5,617 $ 6,752
====== ======== ======= ========
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... 722 952 239 932
Shares issued to shareholders in reinvestment of
dividends and distributions --- --- --- ---
------- ------- ------- --------
722 952 239 932
Shares redeemed ................... (463) (26) (458) 250
-------- ------- ------- --------
NET INCREASE (DECREASE) IN NUMBER OF
SHARES OUTSTANDING ................ 259 926 (219) 682
========= ========= ======== ========
</TABLE>
(a) For the period March 1, 1999 (commencement of operations) to September 30,
1999.
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
(Unaudited)
<TABLE>
<S> <C> <C>
Select REIT Select Bond
Index Fund Index Fund
---------- ----------
Six Months Period Six Months Period
Ended Ended Ended Ended
March 31, Sept 30, March 31, Sept 30,
2000 1999(a) 2000 1999(a)
---- ------- ---- -------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ................... $ --- $ --- $ --- $ ---
Net realized gain (loss) on investments ........ --- --- --- ---
Change in net unrealized appreciation of investment --- --- --- ---
-------- ------- ------- -----
Net Increase (Decrease) in net assets resulting from operations--- --- --- ---
Dividends and distributions to shareholders from
Net realized gains.............................. --- --- --- ---
Net investment income .......................... --- --- --- ---
--------- -------- ------- -------
TOTAL INCREASE (DECREASE)............................ --- --- --- ---
Capital share transactions:
Proceeds from shares sold ...................... --- 3,000 --- ---
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
--------- --------- ------- -------
--- 3,000 --- ---
Cost of shares redeemed ....................... (1,000) (2,000) --- ---
-------- ------- ------- -------
Net increase in net assets resulting from
capital share transactions ................ --- 1,000 --- ---
-------- ------- ------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............ (1,000) 1,000 --- ---
NET ASSETS:
Beginning of period ............................ 1,000 --- --- ---
------- --------- ------- -------
End of period (including undistributed net
investment income/net investment loss) ... $ --- $ 1,000 --- ---
========= ====== ======= =======
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... --- 300 --- ---
Shares issued to shareholders in reinvestment of
dividends and distributions ............... --- --- --- ---
-------- ---------- ------- -------
--- 300 --- ---
Shares redeemed ................................ --- (200) --- ---
-------- -------- ------- -------
NET INCREASE (DECREASE) IN NUMBER OF
SHARES OUTSTANDING ............................. --- 100 --- ---
========== ========= ======= =======
</TABLE>
(a) For the period March 1, 1999 (commencement of operations) to September 30,
1999.
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Select Select Money
Internet Fund Market Fund
Six Months Period Six Months Period
Ended Ended Ended Ended
March 31, Sept 30, March 31, Sept 30,
2000 1999(a) 2000 1999(a)
---- ------- ---- -------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) .............. $ (4,631) $ (1,436) $ --- $ ---
Net realized gain (loss) on investments ........ 227,985 (19,331) --- ---
Change in net unrealized appreciation of investment 1,300,165 (116,987) --- ---
------------ --------- ------- ----------
Net Increase (Decrease) in net assets resulting from
operations......................................... 1,523,519 (137,754) --- ---
Dividends and distributions to shareholders from
Net realized gains.............................. --- --- --- ---
Net investment income .......................... --- --- --- ---
------------- --------- ------- -----------
TOTAL INCREASE (DECREASE)............................ 1,523,519 --- --- ---
Capital share transactions:
Proceeds from shares sold ...................... 781,415 2,041,334 --- 32,000
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
----------- ----------- -------- -------
781,415 2,041,334 --- 32,000
Cost of shares redeemed ............................ (325,388) (184,339) --- (32,000)
---------- ---------- ------- --------
Net increase in net assets resulting from
capital share transactions ........... 456,027 1,856,996 --- ---
---------- --------- ------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............ 1,979,546 1,719,241 --- ---
NET ASSETS:
Beginning of period ............................ 1,719,241 --- --- ---
------------- --------- ------- -----------
End of period (including undistributed net
investment income/net investment loss) ... $ 3,698,787 $ 1,719,241 --- ---
=========== ========== ======== ===========
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... 50,039 205,296 --- 32,000
Shares issued to shareholders in reinvestment of
dividends and distributions ........... --- --- --- ---
---------- ---------- ------- -----------
50,039 205,296 --- 32,000
Shares redeemed ................................ (25,055) (18,500) --- (32,000)
---------- ---------- ------ --------
NET INCREASE (DECREASE) IN NUMBER OF
SHARES OUTSTANDING ........................ 24,984 186,796 --- ---
======== ======= ======= ==========
</TABLE>
(a) For the period March 1, 1999 (commencement of operations) to September 30,
1999.
The accompanying notes are an integral part of
these financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited)
---------------------
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Starwood Starwood Starwood Starwood Starwood Starwood
Strategic Strategic Strategic Strategic Strategic Strategic
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
2000(e) 1999 1998 1997 1996 1995(a)
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning .... $10.35 $9.34 $ 9.30 $7.69 $10.00 $ 10.00
Income from investment
Operations:
Net investment income .... (0.05) (0.06) (0.03) (0.26) (3.23) 0.00 Net realized and
unrealized
gain (loss) on investments 6.30 2.59 0.07 2.00 0.92 0.00
---- ---- ----- ----- ----- ------
Total from investment income 6.25 2.53 0.04 1.74 (2.31) 0.00
Less distributions:
Dividends from realized gains (1.14) (1.52) 0.00 (0.13) 0.00 0.00 Dividends
from net
investment income ... 0.00 0.00 0.00 0.00 0.00 0.00 Total from
---- ---- ----- ----- ----- ----
distributions ................. (1.14) (1.52) 0.00 (0.13) 0.00 0.00
----- ---- ------- ----- ----
Net asset value at end of period $15.46 $10.35 $ 9.34 $ 9.30 $7.69 $10.00
===== ===== ===== ===== ==== =====
TOTAL RETURN (%) ............. 61.16 31.79 0.43(d) 20.94(d) (3.97)(c)(d)(f) (b)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 3,471,715 1,484,492 1,003,064 1,136,986 483,458 2,705
Ratio of expenses to
average net assets .. 1.09%(f) 1.50% 2.59% 4.26% 15.99% 0.00% Ratio of expenses
(after
reimbursement) to
average net assets .. N/A N/A 1.50% 2.54% 15.25% 0.00%
Ratio of net investment
income to average net assets (.79)%(f) (.57)% (1.40)% (2.97)% (14.42)% 0.00%
Ratio of net investment
income (after reimbursement)
to average net assets N/A N/A (0.31)% (1.25)% (13.68)% 0.00%
Portfolio turnover............. 33.92% 89.62% 119.97% 76.09% 169.83% 0.00%
(a) For the Period June 2, 1995 (commencement of operations) to September 30, 1995.
(b) Investment in accordance with objective had not commenced at this time.
(c) For the period April 4, 1996 (commencement of investment in accordance with objective) to September 30, 1996.
(d) Total return would have been lower had certain expenses not been reduced during the periods shown (see Note 3).
(e) For the six months ended March 31,2000.
(f) Annualized.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited)
---------------------
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
First First First Municipal Municipal
Asset Lexington Lexington Lexington Fixed Fixed
Allocation Balanced Balanced Balanced Income Income
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ----- ----
2000(g) 1999 1998 1997(e) 1996 1995(a)
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning .... $ 11.07 $ 10.41 $ 11.01 $ 22.60(f) $200.00(f) $200.00(f)
Income from investment
Operations:
Net investment income .... 0.36 0.31 0.50 (12.54) (177.40) 0.00
Net realized and unrealized
gain (loss) on investments 0.98 0.72 0.61) .99 0.00 0.00
---- ---- ------- ------- -------- -------
Total from investment income.. 1.34 1.03 (0.11) (11.05) (177.40) 0.00
Less distributions:
Dividends from realized gains (1.17) (0.06) (0.14) (0.01) 0.00 0.00
Dividends from net
investment income .... (0.06) (0.31) (0.35) (0.03) 0.00 0.00
------ ------ ------- ----- --------- --------
Total from distributions ...... (1.23) (0.37) (0.49) (0.04) 0.00 0.00
------ ----- ----- --------- --------
Net asset value at end of period $ 11.18 $ 11.07 $ 10.41 $11.01 $ 22.60 $200.00
===== ===== ====== ===== ======== ======
TOTAL RETURN (%) .............. 13.44 10.39 (1.09)(d) 18.54(c)(d)(h) (b) (b)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 3,266,080 4,557,971 6,341,373 3,064,511 8,988 100
Ratio of expenses to
average net assets .. 0.90%(h) 1.00% 1.26% 3.06% 181.72% 0.00%
Ratio of expenses (after
reimbursement) to
average net assets .. N/A N/A 1.00% 2.35% 181.01% 0.00%
Ratio of net investment
income to average net assets 6.51%(h) 2.77% 3.01% 0.30% (181.58)% 0.00%
Ratio of net investment
income (after reimbursement)
to average net assets N/A N/A 3.27% 1.01% (180.86)% 0.00%
Portfolio turnover........ 20.00% 19.47% 17.79% 6.60% 0.00% 0.00%
</TABLE>
(a) For the Period June 2, 1995 (commencement of operations) to September 30,
1995.
(b) Investment in accordance with objective had not commenced at this time.
(c) For the period March 13, 1997 (commencement of investment in accordance with
objective) to September 30, 1997. (d) Total return would have been lower had
certain expenses not been reduced during the periods shown (see Note 3). (e) The
name of the fund was changed during the period (see note 1).
(f) Beginning balance adjusted for reverse stock split (see Note 1)
(g) For the six months ended March 31, 2000
(h) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited)
---------------------
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Taxable Taxable Taxable Taxable Taxable Taxable
Money Money Money Money Money Money
Market Market Market Market Market Market
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
2000 (b) 1999 1998 1997 1996 1995(a)
PER SHARE OPERATING...........
PERFORMANCE:
Net asset value, beginning .... $1.00 $1.00 $1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment
Operations:
Net investment income .... 0.02 0.04 0.04 0.03 0.04 0.002
Net realized and unrealized
gain (loss) on investments 0.00 0.00 0.00 0.00 0.00 0.000
---- ---- ---- ---- ----- -----
Total from investment income .. 0.02 0.04 0.04 0.03 0.04 0.002
Less Distribution:
Dividends from net
investment income... (0.02) (0.04) (0.04) (0.03) (0.04) (0.002)
----- ----- ----- ----- ----- ------
Total from distributions...... (0.02) (0.04) (0.04) (0.03) (0.04) (0.002)
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 43,093,939 52,413,083 65,575,307 50,619,710 50,544,511 1,230,385
Ratio of expenses to
average net assets .. 1.15%(c) 1.15% 1.30% 1.44% 1.25% 12.82%
Ratio of expenses (after
reimbursement) to
average net assets .. N/A N/A 1.10% 1.12% 1.16% 0.47%
Ratio of net investment
income to average net assets 4.33%(c) 3.81% 4.12% 3.86% 4.12% (11.94%)
Ratio of net investment
income (after reimbursement)
to average net assets N/A N/A 4.33% 4.19% 4.21% 0.65%
Portfolio turnover ............ 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
</TABLE>
(a) For the Period June 2, 1995 (commencement of operations) to September 30,
1995.
(b) For the six months ended March 31, 2000.
(c) Annualized.
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited)
---------------------
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<TABLE>
<S> <C> <C> <C> <C>
Select 30 Select 30 Select 500 Select 500
Index Fund Index Fund Index Fund Index Fund
---------- ---------- ---------- ----------
2000(d) 1999 (a) 2000 (d) 1999 (a)
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning .... $ 9.60 $ 10.00 $ 9.82 $ 10.00
Income from investment
Operations:
Net investment income....... 1.00 (.01) .03 .04
Net realized and unrealized
gain (loss) on investments (1.00) (.39) 1.18 (.22)
------- ------ ----- -----
Total from investment income .. 0.00 (.40) 1.21 (.18)
Less Distribution:
Dividends from net
investment income ... ---- ---- ---- ----
---- ---- ---- ----
Total from distributions ---- ---- ---- ----
--------- ------- ------ ------
Net asset value at end of period $ 9.60 $ 9.60 $11.03 $ 9.82
======== ====== ====== =====
TOTAL RETURN (%) .............. 8.85% (4.00)(c) 12.32 (1.80)(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 52,137 50,808 45,155 23,757
Ratio of expenses to
average net assets .. .35%(e) .28% .35%(e) .40%
Ratio of net investment
income to average net assets 19.81%(e) (.28)% .59%(e) .94%
Portfolio turnover ....... 0.00% 0.00% 0.00% 0.00%
</TABLE>
(a) For the period March 1, 1999 (commencement of operations) to September 30,
1999.
(b) For the period May 3, 1999 (commencement of investment in accordance with
objective) to September 30, 1999. (c) For the period June 15, 1999 (commencement
of investment in accordance with objective) to September 30, 1999. (d) For the
six months ended March 31, 2000.
(e) Annualized.
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited)
---------------------
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<TABLE>
<S> <C> <C> <C> <C>
Select International Select International
Select 2000 Select 2000 Equity Equity
Index Fund Index Fund Index Fund Index Fund
---------- ---------- ---------- ----------
2000(d) 1999 (a) 2000(d) 1999(a)
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning .... $ 9.60 $ 10.00 $ 9.90 $ 10.00
Income from investment
Operations:
Net investment income..... .74 (.01) .40 ----
Net realized and unrealized
gain (loss) on investments 1.40 (.11) 1.84 (.10)
----- ------ ----- -----
Total from investment income .. 2.14 (.10) 2.24 (.10)
Less Distribution:
Dividends from net
investment income ... ---- ---- ---- ----
---- ---- ---- ----
Total from distributions ---- ---- ---- ----
---- ---- ---- ----
Net asset value at end of period $ 12.24 $ 10.10 $12.14 $ 9.90
======== ======= ====== ======
TOTAL RETURN (%) .............. 21.19 (1.00)(b) 22.63 (1.00)(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 14,509 9,348 5,617 6,752
Ratio of expenses to
average net assets .. .35%(e) .37% .35% (e) .02%
Ratio of net investment
income to average net assets 13.04% (e) (.37)% 7.30%(e) (.02)%
Portfolio turnover ....... 0.00% 0.00% 0.00% 0.00%
</TABLE>
(a) For the period March 1, 1999 (commencement of operations) to September 30,
1999.
(b) For the period May 3, 1999 (commencement of investment in accordance with
objective) to September 30, 1999. (c) For the period August 30, 1999
(commencement of investment in accordance with objective) to September 30, 1999.
(d) For the six months ended March 31, 2000.
(e) Annualized.
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited)
---------------------
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<TABLE>
<S> <C> <C> <C> <C>
The The The The
Select REIT Select REIT Select Bond Select Bond
Index Fund Index Fund Index Fund Index Fund
---------- ---------- ---------- ----------
2000 (c) 1999 (a) 2000 (c) 1999 (a)
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning $ 10.00 $ 10.00 $ 10.00 $ 1.00
Income from investment
Operations:
Net investment income....... --- --- --- ---
Net realized and unrealized
gain (loss) on investments --- --- --- ---
------- ------- ------- ------
Total from investment income .. --- --- --- ---
Less Distribution:
Dividends from net
investment income ... --- --- --- ---
------- ------ ------- ------
Total from distributions . --- --- --- ---
------- ------ ------- ------
Net asset value at end of period $ 10.00 $ 10.00 $ 10.00 $ 1.00
======= ======= ====== ======
TOTAL RETURN (%) .............. (b) (b) (b) (b)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period --- 1,000 -- ---
Ratio of expenses to
average net assets .. --- --- --- ---
Ratio of net investment
income to average net assets --- --- --- ---
Portfolio turnover ....... --- --- --- ---
</TABLE>
(a) For the Period March 1, 1999 (commencement of operations) to September 30,
1999.
(b) Investment in accordance with objective had not commenced at this time.
(c) For the six months ended March 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited)
---------------------
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<TABLE>
<S> <C> <C> <C> <C>
Select Select
Select Internet Select Internet Money Market Money Market
Fund Fund Fund Fund
---- ---- ---- ----
2000 (d) 1999(a) 2000(d) 1999(a)
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning...... $ 9.20 $ 10.00 $ 1.00 $ 1.00
Income from investment
Operations:
Net investment income....... (0.02) (0.01) --- ---
Net realized and unrealized
gain (loss) on investments 8.29 (.79) --- ---
------- ------ ------ ------
Total from investment income .. 8.27 (.80) --- ---
Less Distribution:
Dividends from net
investment income ... --- --- --- ---
------ ------ ------ ------
Total from distributions . --- --- --- ---
------ ------ ------ ------
Net asset value at end of period $ 17.47 $ 9.20 $ 1.00 $ 1.00
======= ====== ===== =======
TOTAL RETURN (%) .............. 89.89 (8.00)(b) (c) (c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 3,698,787 1,719,241 --- ---
Ratio of expenses to
average net assets .. .35%(e) .35% --- ---
Ratio of net investment
income to average net assets (.33) (e) .26% --- ---
Portfolio turnover ....... --- 6.26% --- ---
</TABLE>
(a) For the Period March 1, 1999 (commencement of operations) to September 30,
1999.
(b) For the period April 14, 1999 (commencement of investment in accordance
with objective) to September 30, 1999.
(c) Investment in accordance with objective had not commenced at this time.
(d) For the six months ended March 31, 2000.
(e) Annualized.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1 - General
The Unified Funds (the "Trust") is an Ohio business trust authorized to offer
separate classes and sub-classes of beneficial interest. The Trust, which was
organized on November 20, 1997, is the successor to the operations of the
Vintage Funds. The Trust consists of a family of no-load mutual funds with
eleven separate portfolios, each having its own investment objective and
policies.
The Starwood Strategic Fund seeks growth of capital. The Fund pursues this
objective by investing principally in a diversified portfolio of equity
securities of seasoned, financially strong growth companies.
The Asset Allocation Fund seeks long term growth of capital and current income.
The Fund pursues this objective by investing principally in a diversified
portfolio of other no-load mutual funds selected from six major financial asset
classes.
The Taxable Money Market Fund seeks a high level of current income consistent
with the preservation of capital and maintenance of liquidity. The Fund pursues
this objective by investing principally in a diversified portfolio of short-term
money market instruments.
The Select 30 Index Fund seeks to track the performance of the Dow Jones
Industrial Average, which is made up of the stocks of 30 companies.
The Select 500 Index Fund seeks to track the performance of the Standard &
Poor's 500 Composite Stock Price Index, which emphasizes stocks of large U.S.
companies.
The Select 2000 Index Fund seeks to track the performance of the Russell 2000
Index, which is made up of stocks of small, generally unseasoned U.S. companies.
The Select International Equity Index Fund seeks to track the performance of the
securities in the Morgan Stanley Capital International Europe, Australia and Far
East Index.
The Select REIT Index Fund seeks to track the performance of the Morgan Stanley
REIT Index, which is made up of stocks issued by real estate investment trusts
(known as REITs).
The Select Bond Index Fund seeks to track the performance of the Lehman Brothers
Aggregate Bond Index, a broad market-weighted index which encompasses U.S.
Treasury and agency securities, investment grade corporate bonds, international
(dollar-denominated) investment grade bonds, and mortgage-backed securities.
The Select Internet Fund seeks long term capital appreciation. The Fund pursues
this objective by investing principally in equity securities of Internet
companies.
The Select Money Market Fund seeks current income consistent with the
preservation of capital and maintenance of liquidity. The Fund pursues this
objective by investing principally in a diversified portfolio of money market
mutual funds that meet three basic criteria: expense ratios less than 0.50%,
upper quartile yield and high investment safety standards.
On February 1, 1997, the Municipal Fixed Income Fund changed its name to the
First Lexington Balanced Fund. In addition to the name change, the Fund changed
its policy and sub-adviser. On March 6, 1997, the First Lexington Balanced Fund
exercised a 1 for 20 reverse stock split. On February 1, 2000 the First
Lexington Balanced Fund changed its name to the Asset Allocation Fund.
Note 2 - Significant Accounting Policies
The following is a summary of the significant accounting policies followed by
the Trust in the preparation of its financial statements.
A) Security Valuations
Portfolio securities owned by a Fund and listed or traded on any national
securities exchange are valued on the basis of the last sale on such exchange
each day the exchange is open for business. Securities not listed on an exchange
or national securities market, or securities in which there were no
transactions, are valued at the average of the most recently reported bid and
asked prices. Bid price is used when no asked price is available. Options are
valued at the last sales price on an exchange. Options for which there were no
transactions are valued at the average of the most recently reported bid and
asked prices. Money market instruments (certificates of deposit, commercial
paper, etc.) are valued at amortized cost if not materially different from
market value.
<PAGE>
B) Securities Transactions
The Funds follow industry practice and record securities transactions on the
trade date. Realized gains and losses from securities transactions are recorded
on the identified cost basis. For federal income tax purposes, the cost of
investments owned on March 31, 2000 was the same as identified cost. As of March
31, 2000, the composition of unrealized appreciation (the excess of value over
tax cost) and depreciation (the excess of tax cost over value) was as follows:
<TABLE>
<S> <C> <C> <C> <C>
Net Appreciation
Fund Appreciation Depreciation (Depreciation)
------------ ------------ ------------ --------------
Starwood Strategic $ 1,238,467 $ (108,916) $ 1,129,551
Asset Allocation 410,505 (65,158) 345,347
Select 30 Index 0 (2,696) (2,696)
Select 500 Index 1,435 0 1,435
Select 2000 Index 941 0 941
Select International Equity Index 617 0 617
Select Internet 1,514,704 (331,526) 1,183,178
</TABLE>
C) Dividends and Distributions to Shareholders
The Select 500 Index Fund, the Select 2000 Index Fund, the Select Internet Fund,
and the Select International Equity Index Fund declare and pay dividends on an
annual basis. The Select 30 Index Fund and the Select REIT Index Fund declare
and pay dividends on a quarterly basis. The Select Bond Index Fund declares and
pays dividends on a monthly basis. The Select Money Market Fund declares and
pays dividends on a daily basis. Dividends, if any, from net investment income
for the Starwood Strategic Fund, and the Asset Allocation Fund are paid
quarterly. Dividends, if any, from net investment income for the Taxable Money
Market Fund are paid on a daily basis. Net realized long term capital gains, if
any, are paid at least annually for each Fund. However, to the extent that net
realized gains of any Fund could be reduced by any capital loss carry-overs from
the Fund, such gains will not be distributed. Dividend distributions are
recorded on the ex-dividend date.
D) Federal Income Taxes
It is the policy of each Fund to meet the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to its shareholders.
Note 2 - Significant Accounting Policies - (continued)
E) Expenses
The Adviser pays all of the operating expenses of the Unified Funds except
shareholder servicing fees, brokerage fees, taxes, interest, 12b-1 fees, and
extraordinary expenses. Each Fund pays a management fee to the Adviser as
described in note 3.
F) Estimates
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
G) Repurchase Agreement
Under the terms of a typical repurchase agreement, a Fund writes a financial
contract with a counterparty and takes possession of a government debt
obligation as collateral. The Fund also agrees with the counterparty to allow
the counterparty to repurchase the financial contract at a specific date and
price, thereby determining the yield during the Fund's holding period. This
arrangement will result in a fixed-rate of return not subject to the market's
fluctuation during the holding period indicated in the contract. The value of
the collateral is at least equal to the total amount of the repurchase
obligation, including interest. In the event of default by the counterparty, a
Fund has the right to use the collateral to offset any losses incurred.
<PAGE>
H) Investments
Interest income is recorded on the accrual basis and dividend income is recorded
on the ex-dividend date. Discounts and premiums on securities purchased are
amortized over the life of the respective securities.
Note 3 - Agreements and Other Transactions with Affiliates
The Trust has entered into a Management Agreement with Unified Investment
Advisers, Inc. (the "Adviser"). The Adviser was formerly known as Vintage
Advisers, Inc. In turn, the Adviser has entered into an Investment Sub-Advisory
Agreement with Health Financial, Inc. The Trust has entered into an
Administration Agreement with Unified Fund Services, Inc. ("Unified") to serve
as transfer agent and shareholder service agent and provide fund accounting
services. The Fund retains Unified Management Corporation (the "Distributor") as
the principal distributor of the Funds' shares.
As investment adviser, the Adviser supervises and assists in the management of
the Trust, pursuant to the terms of the Management Agreement.
Note 3 - Agreements and Other Transactions with Affiliates - (continued)
The Adviser provides investment advisory services and pays certain Fund expenses
(see note 2) for which each Fund pays on a monthly basis, an annual fee as
follows:
<TABLE>
<S> <C> <C> <C>
% of Average Net % of Average Net
Assets of the Fund Fund Assets of the Fund
------------------ ---- ------------------
Starwood Strategic .25% Asset Allocation .25%
Taxable Money Market .90% Select REIT Index .35%
Select 30 Index .35% Select Bond Index .35%
Select 500 Index .35% Select Internet .35%
Select 2000 Index .35% Select Money Market .35%
Select Intl. Equity Index .35%
</TABLE>
Prior to February 1, 2000, the Funds listed below paid advisory fees on a
monthly basis, at an annual rate as indicated below.
<TABLE>
<S> <C> <C> <C>
% of Average Net % of Average Net
Assets of the Fund Fund Assets of the Fund
------------------ ---- ------------------
Starwood Strategic 1.25% Asset Allocation 75%
</TABLE>
The Adviser has engaged Health Financial, Inc. (the "Sub-Adviser") to serve as
sub-adviser to the Asset Allocation Fund. The Sub-Adviser receives an annual
investment management fee, paid by the Adviser, for its management services. The
fee is payable monthly, at the rate of 0.20% of net assets. Prior to February 1,
2000, the Sub-Adviser received a monthly fee at the rate of 0.40% of net assets
up to $250 million; 0.35% of the next $250 million; and 0.30% of net assets in
excess of $500 million.
Unified Fund Services, Inc., serves as the Trust's administrator (the
"Administrator"). Pursuant to a Mutual Fund Services Agreement with the Trust,
the Administrator provides certain administrative personnel and services
(including administration, transfer agency and fund accounting services)
necessary to operate the Funds. The Administrator is an affiliate of the
Adviser. For its services, the administrator receives from the Adviser an annual
fee, payable monthly, based on each Fund's average daily net assets. The fee is
equal to 0.435% of the Fund's average net assets, for the Starwood Strategic
Fund. For the Asset Allocation Fund and the Taxable Money Market Fund, the fee
is equal to 0.185% of the Fund's average net assets, and for the Unified Select
Series the fee is equal to 0.12% of the Fund's average daily net assets.
The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940 (the "Act") with respect to the
Starwood Strategic Fund, the Asset Allocation Fund, and the Taxable Money Market
Fund. Under the Plan, the Trust pays the Distributor an annual fee, payable
monthly, of up to 0.10 % of the respective Fund's average daily net assets.
<PAGE>
The Distributor is a registered broker/dealer and effected substantially all of
the investment portfolio transactions for the Funds. For the six months ended
March 31, 2000, brokerage commissions paid to the Distributor by the Funds are
as follows:
<TABLE>
<S> <C> <C> <C>
Fund Amount Fund Amount
---- ------ ---- ------
Starwood Strategic $ 673 Asset Allocation $ 0
Select Internet $ 463 Taxable Money Market $ 0
Select 30 Index $ 0 Select 2000 Index $ 0
Select 500 Index $ 0 Select International Equity Index $ 0
</TABLE>
The Trust has adopted a Shareholder Services Plan with respect to the Starwood
Strategic Fund, the Asset Allocation Fund, and the Taxable Money Market Fund,
under which financial institutions may enter into a shareholder services
agreement with the Trust to provide administrative support services to the
Funds. In return for these services, a financial institution may receive
Note 3 - Agreements and Other Transactions with Affiliates - (continued)
payments from each Fund at a rate not exceeding 0.15% of the Fund's average net
assets owned beneficially by the institution's clients.
Certain Trustees and officers of the Trust are "interested persons" (as defined
in the Act) of the Trust. Each "non-interested" Trustee is entitled to receive a
quarterly Board of Trustees meeting fee of $2,400 and $400 per additional
meeting attended, plus expenses for services relating to the Trust.
Note 4- Securities Transactions
For the six months ending March 31, 2000, purchases and sales of investment
securities, excluding short-term investments were as follows:
Purchases Sales
--------- -----
Starwood Strategic $ 1,653,788 $ 650,761
Asset Allocation 1,450,000 2,213,000
Select 30 Index 30,000 27,000
Select 500 Index 43,000 14,000
Select 2000 Index 2,600 3,000
Select International Equity Index 2,600 4,300
Select Internet 1,456,466 1,002,625
