FUNDMANAGER PORTFOLIOS
SCHEDULE OF INVESTMENTS
-----------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
-----------------------------------------------------------
-------------------------------------------------------
-------------------------------------------------------
-------------------------------------------------------
AGGRESSIVE GROWTH PORTFOLIO
-------------------------------------------------------
HIGH CAPITAL APPRECIATION. Seeks capital appreciation without regard to current
income.
MARKET
SHARES MUTUAL FUND VALUE
SMALL CAP FUNDS -- (24.8%)
90,566 Baron Asset $3,091,912
61,156 Undiscovered Managers 2,009,578
Behavioral Growth
----------
TOTAL SMALL CAP FUNDS 5,101,490
----------
MID CAP FUNDS -- (43.3%)
52,961 FPA Capital 1,762,563
124,255 Longleaf Partners 2,408,066
133,039 MAS Mid Cap Growth 4,713,583
-----------
TOTAL MID CAP FUNDS 8,884,212
-----------
SECTOR FUNDS -- (28.2%)
66,050 Goldman Sachs Internet 1,344,782
Tollkeeper
10,721 Vanguard Specialized Health Care 1,102,823
47,125 T. Rowe Price Science & 3,349,673
Technology
TOTAL SECTOR FUNDS 5,797,278
GLOBAL FUND -- (7.2%)
----------
40,847 Gabelli Global Growth 1,485,618
----------
TOTAL INVESTMENTS AT MARKET VALUE
(COST $17,233,493) (A) ---------
OTHER ASSETS NET OF LIABILITIES 21,268,598
(-3.5%) (736,094)
----------
NET ASSETS (100.0%) $20,532,504
==========
(SEE NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART OF THE FINANCIAL
STATEMENTS).
FUNDMANAGER PORTFOLIOS
SCHEDULE OF INVESTMENTS
MARCH 31, 2000 (UNAUDITED)
-----------------------------------------------------------
-------------------------------------------------------
GROWTH PORTFOLIO
-------------------------------------------------------
MODEST CAPITAL APPRECIATION. Primarily seeks long - term capital appreciation.
Current income is a secondary consideration.
MARKET
SHARES MUTUAL FUND VALUE
---------------------------------
GROWTH FUNDS -- (54.5%)
90,706 Harbor Capital Appreciation $5,182,956
71,174 MFS Capital Opportunities 1,722,419
65,789 TCW Galileo Select Equities 1,776,973
59,457 Vanguard Horizon 1,869,342
----------
TOTAL GROWTH FUNDS 10,551,690
----------
VALUE FUNDS -- (47.3%)
97,995 Davis New York Venture 3,095,677
30,847 Dodge & Cox Stock 2,944,961
149,800 UAM Clipper Focus 1,575,893
68,791 Vanguard Value Index 1,543,676
----------
TOTAL VALUE FUNDS 9,160,207
----------
----------
TOTAL INVESTMENTS AT MARKET
VALUE (COST $16,438,023) (B) 19,711,897
OTHER ASSETS NET OF LIABILITIES (352,486)
(-1.8%)
----------
NET ASSETS (100.0%) $19,359,393
==========
(SEE NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART OF THE FINANCIAL
STATEMENTS).
FUNDMANAGER PORTFOLIOS
SCHEDULE OF INVESTMENTS
MARCH 31, 2000 (UNAUDITED)
-----------------------------------------------------------
-------------------------------------------------------
GROWTH WITH INCOME PORTFOLIO
-------------------------------------------------------
INCOME AND MODEST CAPITAL APPRECIATION. Seeks a combination of capital
appreciation and current income.
MARKET
SHARES MUTUAL FUND VALUE
----------------------------------
GROWTH AND INCOME FUNDS -- (64.0%)
242,600 AIM Charter (Class A) $4,854,419
135,367 Fundamental Investors 4,630,919
284,130 Lord Abbett Affiliated 4,378,448
-----------
TOTAL GROWTH AND INCOME FUNDS 13,863,786
-----------
EQUITY INCOME FUNDS -- (36.7%)
173,667 T. Rowe Price Equity Income 4,036,009
134,936 Washington Mutual Investors 3,934,745
-----------
TOTAL EQUITY INCOME FUNDS 7,970,754
-----------
-----------
TOTAL INVESTMENTS AT MARKET
VALUE (COST $19,136,971) (C) 21,834,541
OTHER ASSETS NET OF LIABILITIES (161,287)
(-0.7%)
-----------
NET ASSETS (100.0%) $21,673,254
===========
(SEE NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART OF THE FINANCIAL
STATEMENTS).
FUNDMANAGER PORTFOLIOS
SCHEDULE OF INVESTMENTS
MARCH 31, 2000 (UNAUDITED)
-----------------------------------------------------------
-------------------------------------------------------
INTERNATIONAL PORTFOLIO
-------------------------------------------------------
HIGH CAPITAL APPRECIATION. Seeks long - term capital appreciation without regard
to current income.
MARKET
SHARES MUTUAL FUND VALUE
---------------------------------
INTERNATIONAL EQUITY FUNDS -- (95.8%)
17,140 Acorn International Equity $678,746
20,673 Artisan International Equity 692,971
32,392 BT International Equity 1,039,166
47,104 Janus Overseas 2,008,552
49,680 Nicholas-Applegate
International Small Cap Growth 2,543,136
(Institutional Class)
61,892 Oakmark International Small Cap 735,278
41,655 Putnam International Growth 1,313,394
63,381 Tweedy, Browne Global Value 1,337,346
----------
TOTAL INTERNATIONAL EQUITY FUNDS
(COST $7,357,505) (D) 10,348,589
OTHER ASSETS NET OF LIABILITIES 456,668
(4.2%)
----------
NET ASSETS (100.0%) $10,805,257
==========
FUNDMANAGER PORTFOLIOS
SCHEDULE OF INVESTMENTS
MARCH 31, 2000 (UNAUDITED)
=======================================================
-------------------------------------------------------
MANAGED TOTAL RETURN PORTFOLIO
-------------------------------------------------------
ASSET ALLOCATION. Seeks high total return through disciplined asset allocation.
MARKET
SHARES MUTUAL FUND VALUE
--------------------------------
EQUITY AND BALANCED FUNDS -- (45.0%)
110,248 FPA New Income $1,169,737
49,103 Fidelity Spartan U.S. Equity 2,608,401
Index
112,707 T. Rowe Price Equity Income 2,619,321
----------
TOTAL EQUITY AND BALANCED FUNDS 6,397,459
----------
FIXED INCOME FUNDS -- (56.7%)
201,741 Fidelity High-Income 2,328,094
205,232 Loomis Sayles Bond 2,464,841
226,503 PIMCO High-Yield 2,314,865
95,004 PIMCO Total Return 942,446
----------
TOTAL FIXED INCOME FUNDS 8,050,246
----------
TOTAL INVESTMENTS AT MARKET
VALUE (COST $15,105,679) (E) 14,447,705
OTHER ASSETS NET OF (238,433)
LIABILITIES (-1.7%)
----------
NET ASSETS (100.0%) $14,209,272
==========
(SEE NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART OF THE FINANCIAL
STATEMENTS).
FUNDMANAGER PORTFOLIOS
SCHEDULE OF INVESTMENTS
MARCH 31, 2000 (UNAUDITED)
=======================================================
-------------------------------------------------------
-------------------------------------------------------
BOND PORTFOLIO
-------------------------------------------------------
MONTHLY INCOME. Seeks a high level of current income.
MARKET
SHARES MUTUAL FUND VALUE
---------------------------------
SHORT MATURITY FUNDS -- (19.9%)
91,294 FPA New Income $968,631
83,433 Vanguard Admiral Short-Term 822,658
Treasury
----------
TOTAL SHORT MATURITY FUNDS 1,791,289
----------
INTERMEDIATE MATURITY FUNDS -- (59.2%)
60,813 Bond Fund of America 783,890
79,697 MFS Bond (Class A) 974,700
84,851 MAS Fixed Income 937,604
98,900 PIMCO Total Return 985,046
Vanguard Admiral
86,272 Intermediate-Term Treasury 863,580
84,433 Vanguard Intermediate-Term 779,318
Corporate
----------
TOTAL INTERMEDIATE MATURITY 5,324,138
FUNDS
----------
LONG MATURITY FUNDS -- (18.7%)
83,798 Vanguard Admiral Long-Term 882,396
Treasury
97,216 Vanguard Long-Term Corporate 795,227
----------
TOTAL LONG MATURITY FUNDS 1,677,623
----------
TOTAL INVESTMENTS AT MARKET
VALUE 8,793,051
(COST $9,336,031) (F)
OTHER ASSETS NET OF LIABILITIES 198,393
(2.2%)
----------
NET ASSETS (100.0%) $8,991,444
==========
(SEE NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART OF THE FINANCIAL
STATEMENTS).
(A) AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $17,233,493. THE GROSS
UNREALIZED APPRECIATION IS $4,647,225 ; THE GROSS UNREALIZED DEPRECIATION
IS $612,120 , RESULTING IN NET UNREALIZED APPRECIATION OF $4,035,105 FOR
FEDERAL INCOME TAX PURPOSES.
(B) AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $16,438,023. THE GROSS
UNREALIZED APPRECIATION IS $3,859,055 ; THE GROSS UNREALIZED DEPRECIATION
IS $585,181 , RESULTING IN NET UNREALIZED APPRECIATION OF $3,273,874 FOR
FEDERAL INCOME TAX PURPOSES.
(C) AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $19,136,971. THE GROSS
UNREALIZED APPRECIATION IS $2,699,455 ; THE GROSS UNREALIZED DEPRECIATION
IS $1,885 , RESULTING IN NET UNREALIZED APPRECIATION OF $2,697,570 FOR
FEDERAL INCOME TAX PURPOSES.
(D) AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $7,357,505. THE GROSS
UNREALIZED APPRECIATION IS $3,509,408 ; THE GROSS UNREALIZED DEPRECIATION
IS $518,324 , RESULTING IN NET UNREALIZED APPRECIATION OF $2,991,084 FOR
FEDERAL INCOME TAX PURPOSES.
(E) AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $15,105,679. THE GROSS
UNREALIZED APPRECIATION IS $371,944 ; THE GROSS UNREALIZED DEPRECIATION IS
$1,029,918 , RESULTING IN NET UNREALIZED DEPRECIATION OF $657,974 FOR
FEDERAL INCOME TAX PURPOSES.
(F) AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $9,336,031. THE GROSS
UNREALIZED APPRECIATION IS $1,958; THE GROSS UNREALIZED DEPRECIATION IS
$544,938 , RESULTING IN NET UNREALIZED DEPRECIATION OF $542,980 FOR FEDERAL
INCOME TAX PURPOSES.
FundManager Portfolios
Statement of Assets and Liabilities
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Aggressive Growth with Managed
Growth Growth Income Bond Total Return International
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at value* $21,268,598 $19,711,897 $21,834,541 $8,793,051 $14,447,705 $10,348,589
Cash 149,638 78,028 102,665 103,042 192,726 564,385
Receivable for - - - - - -
investments sold
Receivable for fund - - - - - -
shares sold
Dividend receivable - 8,119 - 34,562 38,573 -
Prepaid expenses 2,452 8,283 4,229 62,723 - 42,942
Miscellaneous receivable - 453 - - - -
Total assets 21,420,688 19,806,780 21,941,435 8,993,378 14,679,004 10,955,916
Liabilities:
Payable for fund shares
redeemed 881,523 441,484 262,974 - 456,320 145,725
Distribution expense 6,662 5,902 5,208 1,934 3,332 4,934
payable
Accrued expenses - - - - 10,080 -
Total liabilities 888,185 447,386 268,182 1,934 469,732 150,659
Net Assets $20,532,503 $19,359,393 $21,673,253 $8,991,444 $14,209,272 $10,805,257
A Shares
Shares Outstanding 1,101,489 1,129,958 1,335,862 961,435 1,481,587 593,829
Net Assets $19,128,896 $18,036,32 $21,119,579 $8,991,444 $14,072,078 $8,962,416
Net Asset Value $17.37 $15.96 $15.81 $9.35 $9.50 $15.09
B Shares
Shares Outstanding 81,609 83,554 35,317 N/A 14,460 122,968
Net Assets $1,403,607 $1,323,068 $553,674 N/A $137,194 $1,842,841
Net Asset Value $17.20 $15.83 $15.68 N/A $9.49 $14.99
Net Assets consist of:
Paid in capital $11,362,325 $9,658,659 $12,554,690 $12,610,710 $14,658,517 $7,675,767
Undistributed net - - - 63,673 244,103 -
investment income
Accumulated realized gain
(loss) 5,135,075 6,426,860 6,420,993 (3,139,959) (35,374) 138,406
Net unrealized
appreciation 4,035,105 3,273,874 2,697,570 (542,980) (657,974) 2,991,084
(depreciation)
Net Assets $20,532,505 $19,359,393 $21,673,253 $8,991,444 $14,209,272 $10,805,257
*Investments, at cost $17,233,493 $16,438,023 $19,136,971 $9,336,031 $15,105,679 $7,357,505
(See Notes which are an integral part of the Financial Statements)
</TABLE>
<TABLE>
<CAPTION>
FundManager Portfolios
Statement of Operations
SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
----------------------- -------------------------------------------------------
Aggressive Growth Managed
with
Growth Growth Income Bond Total International
Return
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
-------- -------- --------- -------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Income:
Dividend income $40,728 $60,393 $136,667 $302,763 $409,039 $48,813
Expenses:
Advisory fee 52,196 21,590
48,258 45,790 23,112 38,612
Transfer agent 27,254 15,145
23,151 26,359 12,455 18,579
Shareholder service 25,580 9,322
expense - Class A 22,788 21,722 11,556 19,189
Shareholder service 5,364 4,692 2,074 - 467 5,890
expense - Class B
Administrative fee 37,500 37,500
37,500 37,500 37,500 37,500
Printing & Postage 2,304 3,684 5,841 3,866 2,450 2,877
Custodian fees and 18,086 14,038
fund accounting fees 16,310 17,140 12,002 11,255
Legal 1,325 2,353 3,752 2,225 1,325 1,325
Registration fees 5,820 8,307 9,633 8,841 5,702 4,963
Trustee fees 2,106 2,253 2,758 2,356 2,205 1,917
Audit fee 17,563 12,125
14,125 15,857 14,503 13,542
Miscellaneous 632 1,020 1,839 1,009 112 355
-------- -------- --------- -------- --------------------
Total expenses
179,683 186,677 204,076 129,425 150,938 127,048
Waiver of advisory fee
(21,234) (36,632) (35,493) (23,112) (3,089) (21,590)
Custodian earnings (7,773)
credits (9,440) (8,841) (3,311) (3,687) (15,828)
-------- -------- --------- -------- --------------------
Net expenses 89,630
149,009 141,204 160,810 103,002 144,162
-------- -------- --------- -------- --------------------
Net investment income ($108,281)($80,811) ($24,143) $199,761 $264,877 ($40,817)
-------- -------- --------- -------- --------------------
Realized and Unrealized
Gain (Loss):
Net realized gain (4,200)
(loss) on investment 965,379 2,009,589 142,222 (46,605) (216,643)
Net realized gains 8,006
received from underlying 1,895,548 986,342 1,842,826 306,590 185,015
funds
Net change in
unrealized appreciation 2,191,703 278,361 292,757 (46,022) 18,856 2,420,764
(depreciation)
-------- -------- --------- -------- --------------------
Net realized and
unrealized gain (loss) 5,052,630 3,274,292 2,277,805 (84,621) 108,803 2,601,579
-------- -------- --------- -------- --------------------
Net increase (decrease)
in net assets
resulting from
operations $4,944,349$3,193,481$2,253,662 $115,140 $373,680 $2,560,762
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FundManager Portfolios
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------- ------------------------
<S> <C> <C> <C> <C> <C> <C>
Aggressive Growth Growth
Growth Portfolio with
Portfolio Income
Portfolio
------------------------ ----------------------- ------------------------
Six Year Six Year Six Year
Months Ended Months Ended Months Ended
Ended September Ended September Ended September
March 31, 30, 1999 March 30, 1999 March 31, 30, 1999
2000 31, 2000 2000
(unaudited) (unaudited) (unaudited)
----------- ---------- ---------- ---------- ----------- ----------
Increase (decrease) in Net Assets
from:
Operations
Net investment income (loss) $(24,143) $30,845
$(108,281) $(262,176) $(80,811) $(163,500)
Net realized gain on investments
and underlying funds 2,860,927 6,770,975 2,995,931 7,159,662 1,985,048 8,771,773
Change in unrealized appreciation 933,141 278,361 625,849 292,757
(depreciation) 2,191,703 (698,234)
----------- ---------- ---------- ---------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations 4,944,349 7,441,940 3,193,481 7,622,011 2,253,662 8,104,384
----------- ---------- ---------- ---------- ----------- ----------
Class A
Dividends and distributions from:
Net investment income - - - - -
(687,822)
Net realized gains
(3,495,114) (3,205,863) (3,295,236) (3,631,857) (3,622,380) (4,001,790)
----------- ---------- ---------- ---------- ----------- ----------
Total distributions
(3,495,114) (3,205,863) (3,295,236) (3,631,857) (3,622,380) (4,689,612)
----------- ---------- ---------- ---------- ----------- ----------
Capital share transactions:
Proceeds from sales of shares
3,053,110 4,704,897 2,491,535 5,386,962 1,791,454 3,691,846
Reinvestment of dividends
3,326,189 3,114,913 3,166,217 3,520,754 3,497,609 4,337,237
Payments for shares redeemed
(5,320,368) (19,170,993) (4,757,884) (24,952,841) (2,631,741) (28,832,251)
----------- ---------- ---------- ---------- ----------- ----------
Total from share transactions 899,868
1,058,931 (11,351,183) (16,045,125) 2,657,322 (20,803,168)
----------- ---------- ---------- ---------- ----------- ----------
Class B
Dividends and distributions from:
Net investment income - - - - - -
Net realized gains (209,796) - - (73,041) -
(181,005)
----------- ---------- ---------- ---------- ----------- ----------
Total distributions (209,796) - - (73,041) -
(181,005)
----------- ---------- ---------- ---------- ----------- ----------
Capital share transactions:
Proceeds from sales of shares 401,322 800,355 616,671 602,576 252,103 291,677
Reinvestment of dividends 205,869 - 169,893 - 65,843 -
Payments for shares redeemed (1,938) (2) (20,094) (3,110) (19,456) (2)
----------- ---------- ---------- ---------- ----------- ----------
Total from share transactions 605,253 800,353 766,470 599,466 298,490 291,675
----------- ---------- ---------- ---------- ----------- ----------
Total Increase (Decrease) in Net
Assets 2,903,623 (6,314,753) 1,383,578 (11,455,505) 1,514,053 (17,096,721)
Net Assets:
Beginning of period
17,628,882 23,943,635 17,975,815 29,431,320 20,159,200 37,255,921
----------- ---------- ---------- ---------- ----------- ----------
End of period
$20,532,505 $17,628,882 $19,359,393 $17,975,815 $21,673,253 $20,159,200
=========== ========== ========== ========== =========== ==========
Undistributed Net Investment Income $- $- $- $- $- $56,653
=========== ========== ========== ========== =========== ==========
Shares Outstanding:
Class A
Beginning of period
1,025,004 1,701,201 1,047,700 1,986,992 1,156,887 2,323,640
Shares sold 179,743 285,533 159,524 316,121 110,866 209,141
Reinvestment of dividends 203,935 198,529 209,961 218,816 229,803 264,199
Shares redeemed (307,193) (161,694)
(1,160,259) (287,227) (1,474,229) (1,640,093)
----------- ---------- ---------- ---------- ----------- ----------
End of period
1,101,489 1,025,004 1,129,958 1,047,700 1,335,862 1,156,887
=========== ========== ========== ========== =========== ==========
Class B
Beginning of period* 45,409 - 34,805 - 16,448 -
Shares sold 23,591 45,409 38,574 34,983 15,752 16,448
Reinvestment of dividends 12,724 - 11,334 - 4,354 -
Shares redeemed (115) - (1,159) (178) (1,237) -
----------- ---------- ---------- ---------- ----------- ----------
End of period 81,609 45,409 83,554 34,805 35,317 16,448
=========== ========== ========== ========== =========== ==========
FundManager Portfolios
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------------------------------------
Managed International
Bond Total Portfolio
Portfolio Return
Portfolio
Six Year Six Months Year Ended Six Months Year
Months Ended Ended March September Ended Ended
Ended September 31, 2000 30, 1999 March 31, September
March 30, 1999 (unaudited) 2000 30, 1999
31, 2000 (unaudited)
(unaudited)
Increase (decrease) in Net Assets
from:
Operations
Net investment income (loss) $264,877 $398,868 $(40,817)
$199,761 $2,105,417 $(64,838)
Net realized gain on investments (38,599) 89,947 204,751 180,815 255,364
and underlying funds (221,979)
Change in unrealized appreciation (46,022) 18,856 (345,648) 2,420,764
(depreciation) (3,051,567) 2,593,680
Net increase (decrease) in net assets 115,140 373,680 257,971 2,560,762
resulting from operations (1,168,129) 2,784,206
Class A
Dividends and distributions from:
Net investment income (264,254) (396,123) - -
(595,917) (2,052,573)
Net realized gains - - (269,835) (1,288,597) (201,120) -
Total distributions (534,089) (1,684,720) (201,120) -
(595,917) (2,052,573)
Capital share transactions:
Proceeds from sales of shares 715,750 1,871,148 10,181,492 2,775,506
3,069,959 3,238,895
Reinvestment of dividends 579,980 528,797 1,628,752 200,089 -
1,202,443
Payments for shares redeemed (4,946,872) (3,366,148)
(1,335,637) (51,619,581) (1,600,966) (10,660,593)
Total from share transactions (39,907) (2,546,927) 8,444,096 1,374,629
(47,347,179) (7,421,698)
Class B
Dividends and distributions from:
Net investment income - - (978) (180) - -
Net realized gains - - (1,610) - (31,454) -
Total distributions - - (2,588) (180) (31,454) -
Capital share transactions:
Proceeds from sales of shares - - 101,750 50,470 1,071,027 503,733
Reinvestment of dividends - - 2,543 171 28,284 -
Payments for shares redeemed - - (14,578) (2) (58,920) (2)
Total from share transactions - - 89,715 50,639 1,040,391 503,731
Total Increase (Decrease) in Net (2,620,209) 7,067,806 4,743,208
Assets (520,684) (50,567,881) (4,133,761)
Net Assets:
Beginning of period 16,829,481 9,761,675 6,062,049
9,512,128 60,080,009 10,195,810
End of period
$8,991,444 $9,512,128 $14,209,272 $16,829,481 $10,805,257 $6,062,049
Undistributed Net Investment Income $63,673 $244,103 $264,368 $- $-
$439,821
Shares Outstanding:
Class A
Beginning of period 966,959 1,747,314 903,317 498,683
5,704,681 1,058,564 1,232,125
Shares sold 75,803 299,722 197,982 1,017,019 192,704 314,346
Reinvestment of dividends 62,051 117,694 55,831 166,640 13,982 -
Shares redeemed (519,540) (339,662) (111,540)
(143,378) (5,155,138) (1,047,788)
End of period 961,435 966,959 1,481,587 1,747,314 593,829 498,683
Class B
Beginning of period* - - 5,074 - 46,879 -
Shares sold - - 10,692 5,057 78,243 46,879
Reinvestment of dividends - - 268 17 1,987 -
Shares redeemed - - (1,574) - (4,141) -
End of period - - 14,460 5,074 122,968 46,879
</TABLE>
(See Notes to Financial Statements which are an integral part of the Financial
Statements).
*Class B shares were effective January 8, 1999.
FundManager Portfolios
FINANCIAL HIGHLIGHTS
-------------------------------------------------------------------------------
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
Net Realized and Distributions Distributions
Net Asset Value, Net Investment Unrealized Total From From Net from Net
Beginning of Income Gain/(Loss) on Investment Investment Realized Gain on
Period (Loss) Investments Operations Income Investments
Year Ended September 30,
-------------------------------------------------------------------------------------------
AGGRESSIVE GROWTH PORTFOLIO:
CLASS A
<S> <C> <C> <C> <C> <C> <C>
1995(a) $15.57 (0.13) 3.70 3.57 - (0.83)
1996 $18.31 0.12(b) 1.64 1.76 (0.38) (2.89)
1997 $16.80 (0.12)(b) 3.75 3.63 (0.07) (1.92)
1998 $18.44 0.16 (2.34) (2.18) (0.38) (1.81)
1999 $14.07 (0.30) 4.65 4.35 - (1.95)
2000(f) $16.47 (0.11) 4.79 4.68 - (3.78)
AGGRESSIVE GROWTH PORTFOLIO:
CLASS B
1999(g) $15.52 (0.08) 0.96 0.88 - -
2000 (f) $16.40 (0.11) 4.69 4.58 - (3.78)
GROWTH PORTFOLIO:
CLASS A
1995(a) $14.09 (0.02) 2.99 2.97 - (0.92)
1996 $16.14 0.01(b) 1.85 1.86 (0.24) (2.77)
1997 $14.99 0.04(b) 4.91 4.95 (0.30) (1.83)
1998 $17.81 0.18 (0.48) (0.30) (0.26) (2.44)
1999 $14.81 (0.10) 3.73 3.63 - (1.83)
2000 (f) $16.61 (0.07) 2.96 2.89 - (3.54)
GROWTH PORTFOLIO:
CLASS B
1999(h) $16.16 (0.08) 0.47 0.39 - -
2000 (f) $16.55 (0.05) 2.87 2.82 - (3.54)
GROWTH WITH INCOME PORTFOLIO:
CLASS A
1995(a) $15.99 0.27 3.19 3.46 (0.33) (0.84)
1996 $18.28 0.60(b) 1.60 2.20 (0.86) (2.93)
1997 $16.69 0.26(b) 4.78 5.04 (0.43) (2.33)
1998 $18.97 0.37 (0.62) (0.25) (0.34) (2.35)
1999 $16.03 (0.20) 3.38 3.18 (0.30) (1.73)
2000 (f) $17.18 (0.22) 2.05 1.83 - (3.20)
GROWTH WITH INCOME PORTFOLIO:
CLASS B
1999(g) $16.62 (0.07) 0.57 0.50 - -
2000 (f) $17.12 (0.16) 1.92 1.76 - (3.20)
INTERNATIONAL PORTFOLIO:
CLASS A
1998(f) $10.00 (0.07)(b) (1.66) (1.73) - -
1999 $8.27 (0.18) 3.02 2.84 - -
2000 (f) $11.11 (0.05) 4.42 4.37 - (0.39)
INTERNATIONAL PORTFOLIO:
CLASS B
1999(g) $9.48 (0.03) 1.63 1.60 - -
2000 (f) $11.08 (0.06) 4.36 4.30 - (0.39)
MANAGED TOTAL RETURN PORTFOLIO:
CLASS A
1995(a) $11.24 0.28 1.18 1.46 (0.30) (0.75)
1996 $11.65 0.42(b) 0.40 0.82 (0.50) (0.52)
1997 $11.45 0.28(b) 1.55 1.83 (0.32) (0.90)
1998 $12.06 0.29 (0.08) 0.21 (0.31) (1.15)
1999 $10.81 0.40 0.21 0.61 (0.38) (1.43)
2000 (f) $9.60 0.10 0.06 0.16 (0.09) (0.17)
MANAGED TOTAL RETURN PORTFOLIO:
CLASS B
1999(g) $9.74 0.17 (0.20) (0.03) (0.11) -
2000 (f) $9.60 (0.03) 0.09 0.06 - (0.17)
BOND PORTFOLIO
1995(a) $9.66 0.52 0.49 1.01 (0.46) -
1996 $10.21 0.52(b) (0.14) 0.38 (0.59) -
1997 $10.00 0.51(b) 0.31 0.82 (0.54) -
1998 $10.28 0.54 0.32 0.86 (0.61) -
1999 $10.53 0.93 (1.12) (0.19) (0.48) -
2000 (f) $9.84 0.23 (0.10) 0.13 (0.62) -
</TABLE>
(a) On February 21, 1995, Freedom Capital Management Corporation became the
Investment Adviser.
(b) Per share information is based on average shares outstanding.
(c) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(d) The ratios are presented after expense waivers, if any.
(e) Total Return for the period from commencement of operations through end of
period and is not annualized.
(f) For the six months ended March 31, 2000. (unaudited)
(SEE NOTES TO FINANCIAL STATEMENTS WHICH ARE AN INTEGRAL PART OF THE
FINANCIAL STATEMENTS)
RATIOS TO AVERAGE NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Net
Value, Investment Expenses Net Assets,
Total End Total Income (after End of Period Portfolio
Distributions of Period Return (c) Expenses (d) (Loss) waivers) (000's omitted) Turnover Rate
(0.83) $18.31 24.30% 1.65% (0.68)% 1.65% $33,668 50%
(3.27) $16.80 12.10% 1.73% 0.68% 1.67% $38,944 158%
(1.99) $18.44 24.16% 1.62% (0.73)% 1.59% $36,200 56%
(2.19) $14.07 (13.03)% 1.78% (0.74)% 1.78% $23,944 38%
(1.95) $16.47 31.58% 1.95% (1.32)% 1.74% $16,884 63%
(3.78) $17.37 29.89% 1.82% (0.13)% 1.60% $19,129 44%
- $16.40 5.67%(e) 3.13%(i) (2.67)% 2.92%(i) $745 63%
(3.78) $17.20 29.36% 2.57% (0.88)% 2.35% $1,404 44%
(0.92) $16.14 22.60% 1.71% (0.11)% 1.71% $26,022 68%
(3.01) $14.99 13.46% 1.67% (0.01)% 1.61% $26,639 93%
(2.13) $17.81 36.92% 1.70% 0.18% 1.65% $32,835 95%
(2.70) $14.81 (2.21)% 1.70% (0.32)% 1.70% $29,431 33%
(1.83) $16.61 24.91% 1.72% (0.73)% 1.57% $17,400 62%
(3.54) $15.96 18.64% 2.00% (0.91)% 1.60% $18,036 42%
- $16.55 2.41%(e) 2.68%(i) (1.51)%(i) 2.53%(i) $576 62%
(3.54) $15.83 18.24% 2.75% (1.57)% 2.35% $1,323 42%
(1.17) $18.28 23.30% 1.59% 1.72% 1.59% $35,643 12%
(3.79) $16.69 13.73% 1.83% 3.51% 1.77% $31,571 85%
(2.76) $18.97 34.27% 1.67% 1.44% 1.62% $37,274 61%
(2.69) $16.03 (1.61)% 1.61% 0.16% 1.61% $37,256 14%
(2.03) $17.18 20.40% 1.55% 0.09% 1.55% $19,878 16%
(3.20) $15.81 11.37% 1.94% (0.25)% 1.60% $21,120 2%
- $17.12 3.01%(e) 2.89%(i) (1.32)% 2.89%(i) $282 16%
(3.20) $15.68 10.97% 2.69% (0.89)% 2.35% $554 2%
- $8.27 (17.30)% 2.72%(i) (2.50)% 2.72%(i) $10,196 18%
- $11.11 34.34% 2.77% (1.20)% 2.27% $5,543 31%
(0.39) $15.09 39.51% 2.84% (0.86)% 2.34% $8,962 15%
- $11.08 16.88%(e) 3.63%(i) (1.86)% 3.13%(i) $519 31%
(0.39) $14.99 38.99% 3.59% (1.60)% 3.09% $1,843 15%
(1.05) $11.65 14.30% 2.09% 2.29% 2.09% $14,749 50%
(1.02) $11.45 7.58% 2.27% 3.62% 2.21% $12,123 159%
(1.22) $12.06 17.42% 2.19% 2.15% 2.08% $11,606 73%
(1.46) $10.81 1.75% 2.65% 1.40% 2.65% $9,762 98%
(1.81) $9.60 5.56% 2.64% 2.86% 2.24% $16,781 127%
(0.26) $9.50 2.44% 1.95% 3.18% 1.91% $14,072 26%
(0.11) $9.60 (0.37)%(e) 3.36%(i) 2.26%(i) 2.86%(i) $49 127%
(0.17) $9.49 1.99% 2.70% 2.16% 2.66% $137 26%
(0.46) $10.21 10.80% 1.45% 5.38% 1.45% $77,419 53%
(0.59) $10.00 3.78% 1.52% 5.14% 1.47% $70,166 93%
(0.54) $10.28 8.45% 1.47% 5.03% 1.43% $63,557 142%
(0.61) $10.53 8.69% 1.47% 4.69% 1.47% $60,080 33%
(0.48) $9.84 (2.01)% 1.42% 4.70% 1.42% $9,512 18%
(0.62) $9.35 1.45% 2.80% 4.75% 2.30% $8,991 3%
( (f) The Portfolio commenced investment operations on June 6, 1998.
(g) The Portfolio commenced investment operations on February 22, 1999.
(h) The Portfolio commenced investment operations on February 16, 1999.
(i) Annualized.
</TABLE>
FUNDMANAGER PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (UNAUDITED)
-----------------------------------------------------------------------------
1. DESCRIPTION AND SHARES OF THE PORTFOLIOS. FundManager Portfolios (the
"Trust") consists of a series of six separately managed portfolios
(collectively, the "Portfolios"), each with distinct investment objectives.
Following is the investment objective of each of the six portfolios presented
herein: Aggressive Growth Portfolio (capital appreciation without regard to
current income), Growth Portfolio (long-term capital appreciation with current
income a secondary consideration), Growth with Income Portfolio (combination of
capital appreciation and current income), Bond Portfolio (high level of current
income), Managed Total Return Portfolio (high total return, through capital
appreciation and current income), and International Portfolio (long-term capital
appreciation without regard to current income). The Trust is registered under
the Investment Company Act of 1940, as amended, (the "Act") as an open-end,
diversified management investment company established as a "Delaware business
trust". The Trust, with the exception of the Bond Portfolio, offers Class A and
Class B shares. The Bond Portfolio offers only Class A shares. Class B shares
were effective on January 8, 1999.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
Trust's significant accounting policies:
(A) Security Valuation. Shares of other open-end investment companies are
valued at their net asset value as reported by such companies. In the
absence of readily available market quotations, investments are valued
at fair value as determined by the Board of Trustees (the "Trustees").
(B) Security Transactions and Related Investment Income. Investment
transactions are accounted for on the trade date. Dividend income is
recorded on the ex-dividend date. Interest income is accrued as
earned. Identified cost of investments sold is used to calculate gains
and losses for both financial statement and federal income tax
purposes.
(C) Expense Allocation. The Portfolios bear all costs of their operations
other than expenses specifically assumed by the investment adviser or
the distributors. Expenses directly attributable to a Portfolio are
charged to that Portfolio. Expenses incurred by the Trust with respect
to any two or more Portfolios are allocated in proportion to the net
asset levels of each Portfolio; except where allocations of direct
expenses to each Portfolio can otherwise be made fairly.
(D) Federal Income Taxes. Each Portfolio is treated as a separate taxable
entity for federal tax purposes. Each Portfolio has qualified and
intends to continue to qualify as a "regulated investment company"
under Subchapter M of the Internal Revenue Code, as amended, and to
distribute substantially all of its taxable income, including any net
realized gains, to its shareholders.
Accordingly, no provision for federal income or excise tax is required. At
September 30, 1999, the Bond Portfolio has net capital loss carryforwards on the
basis of identified cost, for federal income tax purposes of approximately
$2,200,072. These capital loss carryforwards will be used to offset any future
realized gains to the extent permitted by the Internal Revenue Code and thus
will reduce the amount of distributions to shareholders which would otherwise be
necessary to relieve the Bond Portfolio of any liability for federal income tax.
The capital losses of $478,849 and $1,721,223 will expire September 30, 2005,
and September 30, 2004, respectively.
(E) Distributions to Shareholders. Dividends and distributions to
shareholders are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to losses deferred on wash
sales, post October 31 losses, and short-term capital gain distributions
received by the Portfolios from other open-end investment companies.
(F) Use of Estimates. The 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 at the date of the financial
statements and the reported amounts of increases and decreases in net
assets form operations during the reporting period. Actual results
could differ from those estimates.
(G) Reclassification of Net Asset Accounts. During the period ended March
31, 2000, the Portfolios reclassified the effects of certain
differences between the financial statement amounts and distributions
determined in accordance with income tax regulations. These
differences were reclassified [increase/(decrease)] between
undistributed net investment income and accumulated net realized
gain/(loss) on investments:
Accumulated
Undistributed Net Realized
Net Gain/(Loss)
Investment on
INCOME INVESTMENTS
Aggressive Growth
Portfolio..................... $ 655,627 $(655,627)
Growth Portfolio.............. 148,801 (148,801)
Growth and Income Portfolio... 206,132 (206,132)
Bond Portfolio................ 3,113 (3,113)
Managed Total Return Portfolio. 41,685 (41,685)
International Portfolio........ 41,164 (41,164)
3. ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
(A) Advisory Fees. The Trust retains Freedom Capital Management
Corporation ("Freedom") to act as Investment Adviser ("Adviser").
Freedom is responsible for the investment management of each
Portfolio's assets, including the responsibility for making the
investment decisions and placing orders for the purchase and sale of
the Portfolios' investments directly with the issuers or with brokers
or dealers selected by it in its discretion, including the
distributors. Freedom also furnished to the Trustees, who have overall
responsibility for the business affairs of the Trust, periodic reports
on the investment performance of the Portfolios. For its services as
Adviser, Freedom receives from each Portfolio a fee, payable monthly,
at the annual rate of 0.50% of each Portfolio's average daily net
assets up to $500 million and 0.40% of average daily net assets in
excess of $500 million. The Adviser may voluntarily choose to waive a
portion of its fee at its sole discretion.
(B) Administration. Federated Administrative Services ("FAS"), a
wholly-owned subsidiary of Federated investors, Inc., provides
administrative personnel and services (including certain legal and
financial reporting services) necessary to operate the Portfolios. FAS
provides these at an annual rate which relates to the average
aggregate daily net assets of the Portfolios as specified below:
MAXIMUM
ADMINISTRATIVE AVERAGE AGGREGATE
FEE DAILY NET ASSETS
.150% on the first $250 million
.125% on the next $250 million
.100% on the next $250 million
.075% on assets in excess of $750 million
The administrative fee received during any fiscal year shall be at least
$75,000 per portfolio. FAS may voluntarily choose to waive a portion of its fee
or minimums from time to time at its sole discretion.
(C) Distribution Fee and Shareholder Servicing Expenses. The Portfolios
have adopted a Distribution Plan under Rule 12b-1 of the Investment
Company Act of 1940, which allows them to pay a distribution and
shareholder servicing fee of up to 0.25% of the Class A Shares assets
and up to 1.00% of the Class B Shares assets. Payments under the
Distribution Plan are designed to compensate the Distributors for
costs and expenses incurred by the Distributors in connection with the
sale, distribution and customer servicing of the Portfolios' Class A
Shares and Class B Shares.
(D) Transfer and Dividend Disbursing Agent Fees and Expenses. Federated
Shareholder Services Company ("FSSC"), a subsidiary of Federated
Investors, serves as transfer agent, dividend disbursing agent and
shareholder servicing agent for the Portfolios.
(E) Trustees' Fees. Trustees who are not affiliated with Freedom receive
compensation and out-of-pocket expenses from each Portfolio.
4. INVESTMENT TRANSACTIONS. Purchase and sale transactions for the period
ended March 31, 2000, were as follows:
PORTFOLIOS PURCHASES SALES
Aggressive Growth Portfolio $9,454,728 $8,530,854
Growth Portfolio $7,588,616 $7,599,365
Growth with Income Portfolio $2,214,181 $500,000
Bond Portfolio $310,760 $650,000
Managed Total Return Portfolio $3,875,777 $5,582,842
International Portfolio $3,458,829 $1,267,065
5. EXPENSE OFFSET ARRANGEMENTS. Each Portfolio's Statement of Operations
reflects custodial earnings credits. These amounts are used to offset the
custody fee payable by the Portfolios to the custodian bank. The credits
are earned when the Portfolio maintains a balance of uninvested cash at the
custodian bank.
6. SUBSEQUENT EVENT. On March 29, 2000 the Trustees unanimously voted to
proceed with a liquidation of the Trust's assets. Accordingly, the Trust
was liquidated and ceased operations on April 28, 2000.
