TomorrowFunds
------------------------------
R E T I R E M E N T T R U S T
A Lifecycle Retirement Program
Semi Annual Report
June 30, 2000
(Unaudited)
TOMORROW LONG-TERM RETIREMENT FUND
TOMORROW MEDIUM-TERM RETIREMENT FUND
TOMORROW SHORT-TERM RETIREMENT FUND
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
TABLE OF CONTENTS
Schedules of Investments:
Tomorrow Long-Term Retirement Fund ................................ 2
Tomorrow Medium-Term Retirement Fund .............................. 6
Tomorrow Short-Term Retirement Fund ............................... 10
Statements of Assets and Liabilities ...................................... 12
Statements of Operations .................................................. 13
Statements of Changes in Net Assets ....................................... 14
Notes to Financial Statements ............................................. 15
Financial Highlights ...................................................... 22
Page 1
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW LONG-TERM RETIREMENT FUND
COMMON STOCKS (73.3%)
BASIC MATERIALS (2.7%)
<C> <S> <C>
425 Aptargroup Inc. ................................ $ 11,475
550 Cambrex Corp. .................................. 24,750
525 Georgia Pacific Corp. .......................... 13,781
1,200 Intermet Corp. ................................. 8,250
575 *Intervoice - Brite Inc. ........................ 3,773
35 Kimberly Clark Corp. ........................... 2,008
375 Lilly Industries Inc. - Cl A ................... 11,273
350 Macdermid Inc. ................................. 8,225
370 Nashua Corp. ................................... 3,052
1,650 Occidental Petroleum Corp. ..................... 34,753
700 Pope & Talbot Inc. ............................. 11,200
180 Quanex Corp. ................................... 2,678
450 Ryerson Tull Inc. .............................. 4,669
1,500 *Santa Fe Snyder Corp. .......................... 17,063
1,100 Sherwin - Williams Co. ......................... 23,306
550 Solutia, Inc. .................................. 7,563
325 Tosco Corporation .............................. 9,202
925 Transocean Sedco Forex Inc. .................... 49,430
--------
246,451
--------
COMMERCIAL SERVICES (2.1%)
425 ABM Industries Inc. ............................ 9,775
200 *Acxiom Corp. ................................... 5,450
950 *Billing Concepts Corp. ......................... 4,216
600 *Ciber Inc. ..................................... 7,950
500 Comdisco Inc. .................................. 11,156
350 Eastman Kodak Co. .............................. 20,825
425 Firstmerit Corp. ............................... 9,084
200 *GTech Holding Corp. ............................ 4,537
640 *Insituform Technologies - Class A .............. 17,360
209 *Quintiles Transnational Corp. .................. 2,952
250 Readers Digest Association Inc. ................ 9,938
1,280 True North Communications ...................... 56,320
600 Young & Rubicam Inc. ........................... 34,313
--------
193,876
--------
CONSUMER CYCLICALS (3.1%)
375 *Best Buy Inc. .................................. 23,719
270 *Champion Enterprises Inc. ...................... 1,316
270 Clarcor Inc. ................................... 5,366
500 *Convergys Corp. ................................ 25,937
650 *Dress Barn Inc. ................................ 14,381
1,400 Ford Motor Co. ................................. 60,200
275 Harley Davidson Inc. ........................... 10,588
425 Jones Apparel Group Inc. ....................... 9,988
180 Kellwood Co. ................................... 3,803
900 Metris Companies Inc. .......................... 22,613
180 *Nautica Enterprises Inc. ....................... 1,924
360 Osh Kosh B'Gosh - Cl A ......................... 5,895
270 Ryland Group Inc. .............................. 5,974
150 SPX Corp. ...................................... 18,141
800 Sears Roebuck & Co. ............................ 26,100
525 Shaw Industries Inc. ........................... 6,563
100 Storage USA .................................... 2,950
525 Toro Co. ....................................... 17,292
225 USG Corp. ...................................... 6,834
200 Wabash National Corp. .......................... 2,387
200 *Williams Sonoma Inc. .......................... 6,487
550 Winnebago Industries ........................... 7,184
--------
285,642
--------
CONSUMER NON CYCLICALS (4.4%)
425 Anheuser - Busch Co. ........................... 31,742
200 Ball Corp. ..................................... 6,437
500 Best Foods ..................................... 34,625
1,225 Boise Cascade Group ............................ 31,697
500 Casey's General Store .......................... 5,187
169 Corning Inc. ................................... 45,609
700 Hormel Foods Corp. ............................. 11,768
200 Libbey Inc. .................................... 6,425
325 McCormack & Co Inc. ............................ 10,562
900 Newell Rubbermaid Inc. ......................... 23,175
600 Pepsico Inc. ................................... 26,663
1,150 Philip Morris Companies Inc. ................... 30,547
475 Procter & Gamble Co. ........................... 27,194
325 Quaker Oats .................................... 24,416
475 *Ralcorp Holding Inc. ........................... 5,819
350 *Smithfield Foods Inc. .......................... 9,822
300 *Suiza Foods Corp. .............................. 14,663
2,604 Supervalu Inc. ................................. 49,639
325 Tupperware Corporation ......................... 7,150
--------
403,140
--------
CONSUMER SERVICES (3.0%)
700 Arctic Cat Inc. ................................ 8,313
350 *Brinker International Inc. ..................... 10,237
1,500 Brunswick Corp. ................................ 24,844
270 *Carmike Cinemas Inc. - Cl A .................... 1,046
450 Darden Restaurants Inc. ........................ 7,313
360 *Devry Inc. ..................................... 9,517
1,300 *Midway Games Inc. .............................. 10,481
550 *Park Place Entertainment Corp. ................. 6,703
500 Reynolds & Reynolds ............................ 9,125
600 Time Warner Inc. ............................... 45,600
450 Viad Corp. ..................................... 12,263
1,725 Wal Mart Stores Inc. ........................... 99,403
725 Walt Disney Co. ................................ 28,139
--------
272,984
--------
ENERGY (2.2%)
300 *BJ Services Co. ................................ 18,750
200 *Barrett Resources Corp. ........................ 6,088
750 Coastal Corp. .................................. 45,656
225 Dynegy Inc New Cl A ............................ 15,370
See Notes to Financial Statements Page 3
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW LONG-TERM RETIREMENT FUND (continued)
350 Keyspan Corp. .................................. $ 10,763
275 Murphy Oil Corp. ............................... 16,345
180 *New Field Exploration Co. ...................... 7,043
920 *Oceaneering International Inc. ................. 17,480
950 Royal Dutch Petroleum ADR ...................... 58,484
---------
195,979
---------
FINANCE (8.5%)
625 AMBAC Financial Group Inc. ..................... 34,258
400 American International Group ................... 47,000
495 Associated Banc Corp. .......................... 10,797
90 Astoria Financial Corp. ........................ 2,317
821 BankNorth Group Inc. ........................... 12,572
315 Bear Stearns Cos. Inc. ......................... 13,112
100 Centura Banks Inc. ............................. 3,394
178 Charter One Financial .......................... 4,094
850 Cincinnati Financial Corp. ..................... 26,722
1,875 Citigroup Inc. ................................. 112,969
135 Commercial Federal Corp. ....................... 2,101
200 Cullen/Frost Bankers Inc. ...................... 5,262
156 *Delphi Financial Group ......................... 5,294
875 Dime Bancorp Inc. .............................. 13,781
500 Equifax Inc. ................................... 13,125
750 Federal National Mortgage Association .......... 39,141
335 Fidelity National Financial Inc. ............... 6,135
200 Finova Group Inc. .............................. 2,600
400 First American Corporation ..................... 5,725
950 Fleet Boston Financial Group Inc. .............. 32,300
100 Franchise Finance Corp. of America ............. 2,300
3,375 Hibernia Corp Class A .......................... 36,703
270 Hilb, Rogal & Hamilton Co. ..................... 9,365
900 Household International Inc. ................... 37,406
360 Hudson United Bancorp .......................... 8,077
180 Keystone Financial Inc. ........................ 3,825
325 Legg Mason Inc. ................................ 16,250
275 MAF Bancorp .................................... 5,002
350 Merrill Lynch & Co Inc. ........................ 40,250
180 Mutual Risk Management ......................... 3,116
350 Nationwide Financial Services .................. 11,506
1,240 North Fork Bancorp ............................. 18,755
300 The PMI Group Inc. ............................. 14,250
925 PNC Financial Services Group ................... 43,359
375 Paine Webber Group Inc. ........................ 17,063
275 T. Rowe Price Associates Inc. .................. 11,687
300 Provident Financial Group ...................... 7,144
100 Radian Group Inc. .............................. 5,175
500 Raymond James Financial ........................ 11,250
462 Charles Schwab Corp. ........................... 15,535
350 State Street Corp. ............................. 37,122
550 Summit Bankcorp ................................ 13,544
375 TCF Financial Corp. ............................ 9,633
180 Trenwick Group Inc. ............................ 2,621
---------
773,637
---------
HEALTH CARE (8.5%)
270 *Advanced Tissue Sciences Inc. .................. 2,168
200 Allergen Inc. .................................. 14,900
650 Alpharma Inc Cl A .............................. 40,462
400 *Amerisource Health Corp. ....................... 12,400
300 Baxter International ........................... 21,094
225 Beckman Coulter Inc. ........................... 13,134
525 Cardinal Health Inc. ........................... 38,850
625 DENTSPLY International ......................... 19,258
650 Eli Lilly & Co. ................................ 64,919
200 *Express Scripts Inc -Cl A ...................... 12,425
125 *Genzyme Corp. .................................. 7,430
500 Johnson & Johnson Co. .......................... 50,937
1,350 *Medimmune Inc. ................................. 99,900
180 Mentor Corp. ................................... 4,894
1,025 Merck & Co Inc. ................................ 78,541
150 *Millennium Pharmaceuticals Inc. ................ 16,781
180 *Orthodontic Centers of America ................. 4,072
270 Owens & Minor Inc. ............................. 4,641
250 *PacifiCare Health Systems - Cl B ............... 15,047
2,150 Pfizer Inc. .................................... 103,200
180 *Respironics Inc. ............................... 3,240
475 Schering Plough Corp. .......................... 23,987
521 *Shire Pharmaceuticals Group - ADR .............. 27,027
1,150 Stryker Corp. .................................. 50,313
575 *Wellpoint Health Networks ...................... 41,652
---------
771,272
---------
INDUSTRIAL (6.6%)
275 *American Standard Cos Inc. ..................... 11,275
730 *Anixter International Inc. ..................... 19,345
350 Applied Power Inc. ............................. 11,725
950 *CDI Corp. ...................................... 19,356
475 Cabot Corp. .................................... 12,944
200 Centurytel Inc. ................................ 5,750
1,275 *Cytec Industries Inc. .......................... 31,477
337 *Dycom Industries ............................... 15,502
600 Exxon Mobil Corp. .............................. 47,100
150 Ferro Corp. .................................... 3,150
2,850 General Electric ............................... 151,050
550 Imco Recycling Inc. ............................ 2,990
900 *Ivax Corp. ..................................... 37,350
135 Manitowoc Inc. ................................. 3,611
1,160 *Morrison Knudson Co. ........................... 8,410
575 *Noble Drilling Corp. ........................... 23,683
975 *Novellus Systems Inc. .......................... 55,148
90 *SPS Technologies Inc. .......................... 3,696
850 Tyco International Ltd. ........................ 40,269
1,625 USX - Marathon Group ........................... 40,727
825 *Vishay International Inc. ...................... 31,298
175 *Waters Corp. ................................... 21,842
---------
597,698
---------
Page 3 See Notes to Financial Statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW LONG-TERM RETIREMENT FUND (continued)
REAL ESTATE INVESTMENT TRUST (0.7%)
400 Charles Smith Residential ...................... 15,200
180 Federal Realty Investors Trust ................. 3,600
225 General Growth Properties ...................... 7,144
675 Glenborough Realty ............................. 11,770
100 Health Care Property Investors ................. 2,725
200 Highwood Properties ............................ 4,800
100 Liberty Property Trust ......................... 2,594
100 Mack-Cali Realty Corp. ......................... 2,569
640 New England Business Service ................... 10,400
---------
60,802
---------
RETAIL (2.1%)
500 *BJ's Wholesale Club Inc. ....................... 16,500
250 *CDW Computer Centers Inc. ...................... 15,625
750 *Federated Department Store ..................... 25,312
350 *Footstar Inc. .................................. 11,638
1,900 *Jack in the Box Inc. ........................... 46,788
350 *Men's Warehouse ................................ 7,809
275 *Neiman Marcus Group Inc. ....................... 8,130
125 *Payless Shoesource Inc. ........................ 6,406
1,075 Pier 1 Imports Inc. ............................ 10,481
200 Tiffany & Company .............................. 13,500
650 *Zale Corp. ..................................... 23,725
---------
185,914
---------
TECHNOLOGY (18.4%)
555 AAR Corp. ...................................... 6,660
225 *Adaptec Inc. ................................... 5,119
700 *Adaptive Broadband Corp. ....................... 25,725
225 Adobe Systems Inc. ............................. 29,250
300 *Affiliated Computer Services ................... 9,919
2,100 Allegheny Energy Inc. .......................... 57,487
800 *Altera Corp. ................................... 81,550
450 *American Management Systems .................... 14,773
1,175 *Andrew Corp. ................................... 39,436
700 *Apple Computer Inc. ............................ 36,662
500 *Applied Materials Inc. ......................... 45,312
200 *Aspect Communications Inc. ..................... 7,863
180 *Cognex Corp. ................................... 9,315
475 Computer Associates International Inc. ......... 24,314
675 Computer Task Group ............................ 3,417
500 *Concord EFS Inc. ............................... 13,000
700 Dallas Semiconductors .......................... 28,525
550 *EMC Corp. ...................................... 42,316
1,800 *Filenet Corp. .................................. 33,075
700 First Data Corp. ............................... 34,738
450 *Fiserv Inc. .................................... 19,463
1,275 Gerber Scientific Inc. ......................... 14,662
750 Harris Corp. ................................... 24,563
1,000 Intel Corp. .................................... 133,687
700 International Business Machines Corp. .......... 76,694
275 *International Rectifier Corp. .................. 15,400
1,640 *Kemet Corp. .................................... 41,103
200 *Lexmark International Group - Cl A ............. 13,450
690 *Microchip Technology Inc. ...................... 40,203
975 *Microsoft Corp. ................................ 78,000
250 *National Semiconductor ......................... 14,187
300 *Nextel Communications Inc. ..................... 18,356
1,325 *Oracle Corporation ............................. 111,383
74 *PeopleSoft Inc. ................................ 1,240
100 *Precision Castparts Corp. ...................... 4,525
100 *Qlogic Corp. ................................... 6,606
300 *Rational Software .............................. 27,881
180 *S3 Incorporated ................................ 2,655
560 *Sanmina Corp. .................................. 47,880
650 Scientific Atlanta Inc. ......................... 48,425
625 *Siebel Systems Inc. ............................ 102,227
975 *Sun Microsystems Inc. .......................... 88,664
250 *Symantec Corp. ................................. 13,484
325 Technitrol Inc. ................................ 31,484
500 *Teradyne Inc. .................................. 36,750
600 Texas Intruments Inc. .......................... 41,212
825 United Technologies ............................ 48,572
250 *Visx Inc. ...................................... 7,016
350 *Xircom ......................................... 16,625
---------
1,674,853
---------
TELECOMMUNICATIONS (6.9%)
1,100 *ADC Telecommunications Inc. .................... 92,263
1,525 AT&T Corp. ..................................... 48,228
100 *Adtran Inc. .................................... 5,987
1,300 Bell Atlantic Corp. ............................ 66,056
1,300 Bellsouth Corp. ................................ 55,412
1,800 *Cisco Systems .................................. 114,412
1,000 *Comcast Corp Cl A .............................. 40,500
150 *DST System ..................................... 11,419
550 *General Communication - Cl A ................... 2,819
217 *Harmonic Inc. .................................. 5,371
200 *Hispanic Broadcasting Corp. .................... 6,625
150 *Powerwave Technologies Inc. .................... 6,600
100 Telephone & Data Systems Inc. .................. 10,025
225 *Univision Communications Inc. .................. 23,288
500 *Voicestream Wireless Corp. ..................... 58,148
625 *Western Wireless Co. ........................... 34,063
1,100 *Worldcom Inc. .................................. 50,463
---------
631,679
---------
TRANSPORTATION (0.9%)
400 *Alaska Air Group ............................... 10,850
550 Delta Air Lines Inc. ........................... 27,809
525 *J B Hunt Transportation Services Inc. .......... 8,105
600 Mascotech Inc. ................................. 6,487
675 Meritor Automotive ............................. 7,425
See Notes to Financial Statements Page 4
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW LONG-TERM RETIREMENT FUND (continued)
200 Polaris Industries ............................. $ 6,400
183 Visteon Corp. .................................. 2,223
750 *Yellow Corp. ................................... 11,062
---------
80,361
---------
UTILITIES (3.2%)
550 *Atmel Corp. .................................... 20,281
1,125 Belden Inc. .................................... 28,828
400 *C-Cube Microsystems ............................ 7,850
650 Conectiv, Inc. ................................. 10,116
600 Cooper Industries Inc. ......................... 19,537
475 Cypress Semicinductor .......................... 20,069
800 Energy East Corp. .............................. 15,250
800 FPL Group Inc. ................................. 39,600
225 Florida Progress Co. ........................... 10,547
500 GPU Inc. ....................................... 13,531
675 *Integrated Device Technology ................... 40,416
450 Mark IV Industries Inc. ........................ 9,394
700 Northwest Natural Gas Co. ...................... 15,662
500 Pinnacle West Capital .......................... 16,937
1,250 Questar Corp. .................................. 24,219
---------
292,237
---------
TOTAL COMMON STOCKS
(Cost $5,752,909) ............................ 6,666,525
---------
OPEN END INVESTMENT COMPANY (4.7%)
(Cost $326,911)
31,000 BT EAFE Equity Index Fund ...................... 431,830
---------
Principal
Amount
U.S. GOVERNMENT OBLIGATIONS (24.7%)
U.S. TREASURY NOTES (22.9%)
$ 155,000 5.250% Due 8/15/03 ............................. 150,252
160,000 5.500% Due 5/15/09 ............................. 153,099
145,000 5.625% Due 5/15/08 ............................. 139,880
360,000 6.000% Due 8/15/09 ............................. 357,131
795,000 6.125% Due 12/31/01 ............................ 791,152
305,000 6.125% Due 8/15/07 ............................. 302,950
205,000 6.750% Due 9/15/29 ............................. 196,128
---------
2,090,592
---------
U.S. TREASURY BONDS (1.6%)
165,000 5.250% Due 11/15/28 ............................ 146,103
---------
U.S. TREASURY STRIP (0.2%)
40,000 0.000% Due 2/15/15 ............................. 16,188
---------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $2,299,951) ............................ $2,252,883
----------
EURODOLLAR DEPOSIT (3.2%)
(Cost $294,000)
$294,000 Societe General 6.400% Due 7/3/00 .............. 294,000
----------
TOTAL INVESTMENTS (105.9%)
(Cost $8,673,771) ............................ 9,645,238
LIABILITIES IN EXCESS OF
OTHER ASSETS (-5.9%) ......................... (541,296)
----------
TOTAL NET ASSETS (100.0%) ...................... $9,103,942
====== ==========
* Non-income producing security.
Page 5 See Notes to Financial Statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW MEDIUM-TERM RETIREMENT FUND
COMMON STOCK (58.0%)
BASIC MATERIALS (2.0%)
200 Aptargroup Inc. ................................ $ 5,400
825 Belden Inc. .................................... 21,141
275 Cambrex Corp. .................................. 12,375
1,800 *Cytec Industries Inc. .......................... 44,437
875 Georgia Pacific Co. ............................ 22,969
575 Intermet Corp. ................................. 3,953
850 *Ivax Corp. ..................................... 35,275
200 Lilly Industries ............................... 6,013
150 Macdermid Inc. ................................. 3,525
400 Pope & Talbot Inc. ............................. 6,400
100 Quanex Corp. ................................... 1,487
575 Ryerson Tull Inc. .............................. 5,966
50 *SPS Technologies Inc. .......................... 2,053
1,150 Sherwin - Williams Co. ......................... 24,366
650 Solutia, Inc. .................................. 8,937
1,200 Transocean Sedco Forex Inc. .................... 64,125
----------
268,422
----------
CAPITAL GOODS (0.3%)
300 AAR Corp. ...................................... 3,600
175 Applied Power Inc. ............................. 5,863
300 *Insituform Technology .......................... 8,138
75 Manitowoc Inc. ................................. 2,006
550 *Morrison Knudsen Co. ........................... 3,987
100 Ryland Group Inc. .............................. 2,213
250 Toro Co. ....................................... 8,234
225 USG Corp. ...................................... 6,834
300 Winnebago Industries ........................... 3,919
----------
44,794
----------
COMMERCIAL SERVICES (0.7%)
200 ABM Industries Inc. ............................ 4,600
450 *Billing Concepts Corp. ......................... 1,997
425 Comdisco Inc. .................................. 9,483
625 *Convergys Corp. ................................ 32,422
116 *Quintiles Transnational ........................ 1,639
700 True North Communication ....................... 30,800
450 Viad Corp. ..................................... 12,262
----------
93,203
----------
CONSUMER CYCLICALS (1.8%)
325 Arctic Cat Inc. ................................ 3,859
550 *Best Buy Inc. .................................. 34,787
2,400 Brunswick Corp. ................................ 39,750
150 Clarcor Inc. ................................... 2,981
1,850 Ford Motor Company ............................. 79,550
275 Harley Davidson Inc. ........................... 10,587
325 Jones Apparel Group Inc. ....................... 7,638
100 Kellwood Company ............................... 2,112
300 Mascotech Inc. ................................. 3,244
650 Meritor Automotive ............................. 7,150
100 *Nautica Enterprises Inc. ....................... 1,069
200 Osh Kosh B'Gosh Class `A' ...................... 3,275
100 Polaris Industries ............................. 3,200
1,200 Sears Roebuck & Co. ............................ 39,150
450 Shaw Industries Inc. ........................... 5,625
100 Wabash National Corp. .......................... 1,194
----------
245,171
----------
CONSUMER NON CYCLICALS (3.6%)
525 Anheuser-Busch Co. ............................. 39,211
250 Ball Corp. ..................................... 8,047
850 Best Foods ..................................... 58,862
1,600 Boise Cascade Corp. ............................ 41,400
250 Corning Inc. ................................... 67,469
700 Hormel Foods Corp. ............................. 11,769
100 Libbey Inc. .................................... 3,213
350 McCormick & Co Inc. ............................ 11,375
300 New England Business Service ................... 4,875
1,350 Newell Rubbermaid Inc. ......................... 34,763
850 Pepsico Inc. ................................... 37,772
2,300 Philip Morris Companies Inc. ................... 61,094
725 Procter & Gamble Co. ........................... 41,506
500 Quaker Oats .................................... 37,562
225 *Ralcorp Holding Inc. ........................... 2,756
175 *Smithfield Foods Inc. .......................... 4,911
300 *Suiza Foods Corp. .............................. 14,662
375 Tupperware Corporation ......................... 8,250
----------
489,497
----------
CONSUMER SERVICES (1.4%)
325 *Brinker International Inc. ..................... 9,506
675 *CDI Corp. ...................................... 13,753
500 Darden Restaurants ............................. 8,125
200 *Devry Inc. ..................................... 5,288
575 Eastman Kodak .................................. 34,213
275 Imco Recycling, Inc. ........................... 1,495
750 *Park Place Entertainment Corp. ................. 9,141
250 Readers Digest Association Inc. ................ 9,938
1,050 Walt Disney Co. ................................ 40,753
1,000 Young & Rubicam Inc. ........................... 57,187
----------
189,399
----------
ENERGY (1.9%)
325 *BJ Services Co. ................................ 20,312
100 *Barrett Resources Corp. ........................ 3,044
250 Dynegy Inc. .................................... 17,078
375 Keyspan Corp. .................................. 11,531
300 Murphy Oil Corp. ............................... 17,831
100 *New Field Exploration Co. ...................... 3,912
500 *Oceaneering International Inc. ................. 9,500
1,350 Questar Corp. .................................. 26,156
See Notes to Financial Statements Page 6
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW MEDIUM-TERM RETIREMENT FUND (continued)
1,300 Royal Dutch Petroleum ADR ...................... $ 80,031
300 Tosco Corporation .............................. 8,494
2,700 USX - Marathon Group ........................... 67,669
----------
265,558
----------
FINANCE (7.3%)
1,000 AMBAC Financial Group Inc. ..................... 54,813
625 American International Group Inc. .............. 73,438
550 Associated Banc-Corp ........................... 11,997
365 BankNorth Group Inc. ........................... 5,589
315 Bear Stearns Cos ............................... 13,112
50 Centura Banks Inc. ............................. 1,697
99 Charter One Financial .......................... 2,277
1,300 Cincinnati Financial Corp. ..................... 40,869
2,525 Citigroup Inc. ................................. 152,131
75 Commercial Federal Corp. ....................... 1,167
100 Cullen Frost Banker ............................ 2,631
77 *Delphi Financial Group ......................... 2,613
750 Dime Bancorp Inc. .............................. 11,813
550 Equifax Inc. ................................... 14,438
1,100 Federal National Mortgage Association .......... 57,406
181 Fidelity National Financial Inc. ............... 3,315
200 First American Corp. ........................... 2,863
200 FirstMerit Corporation ......................... 4,275
2,000 Fleet Boston Financial Group ................... 68,000
100 Franchise Finance Corp of America .............. 2,300
4,600 Hibernia Corp Class A .......................... 50,025
150 Hilb, Rogal, and Hamilton Co. .................. 5,203
1,350 Household International Inc. ................... 56,109
180 Hudson United Bancorp .......................... 4,039
100 Keystone Financial Inc. ........................ 2,125
132 Legg Mason Inc. ................................ 6,600
250 MAF Bancorp .................................... 4,547
475 Merrill Lynch & Co Inc. ........................ 54,625
450 Metris Companies ............................... 11,306
75 Mutual Risk Management ......................... 1,298
225 Nationwide Financial Services .................. 7,397
1,200 North Fork Bancorporation ...................... 18,150
350 The PMI Group Inc. ............................. 16,625
1,550 PNC Financial Services Group ................... 72,656
650 Paine Webber Group Inc. ........................ 29,575
325 T. Rowe Price Associates Inc. .................. 13,812
325 Provident Financial Group Inc. ................. 7,739
50 Radian Group ................................... 2,587
225 Raymond James Financial ........................ 5,063
257 Charles Schwab Corp. ........................... 8,642
550 State Street Corp. ............................. 58,334
550 Summit Bankcorp ................................ 13,544
450 TCF Financial Corp. ............................ 11,559
100 Trenwick Group Inc. ............................ 1,456
----------
989,760
----------
HEALTH CARE (7.0%)
200 Allergen Inc. .................................. 14,900
525 Alpharma Inc Class A ........................... 32,681
400 *AmeriSource Health ............................. 12,400
550 Baxter International ........................... 38,672
250 Beckman Coulter Inc. ........................... 14,594
700 Cardinal Health Inc. ........................... 51,800
625 DENTSPLY International ......................... 19,258
950 Eli Lilly & Co. ................................ 94,881
100 *Express Scripts Inc Class A .................... 6,213
750 Johnson & Johnson .............................. 76,406
1,125 *Medimmune Inc. ................................. 83,250
100 Mentor Corp. ................................... 2,719
1,350 Merck & Co Inc. ................................ 103,444
150 *Millennium Pharmaceuticals Inc. ................ 16,781
100 *Orthodontic Centers of America ................. 2,263
150 Owens & Minor Inc. ............................. 2,577
200 *Pacificare Health Service ...................... 12,037
3,550 Pfizer Inc. .................................... 170,400
100 *Respironics Inc. ............................... 1,800
1,100 Schering-Plough Corp. .......................... 55,550
234 Shire Pharmaceuticals Group - ADR .............. 12,139
1,700 Stryker Corp. .................................. 74,375
800 *Wellpoint Health Networks ...................... 57,950
----------
957,090
----------
INDUSTRIAL (2.8%)
275 *American Standard Cos Inc. ..................... 11,275
500 Cabot Corp. .................................... 13,625
4,500 General Electric Corporation ................... 238,500
150 SPX Corp. ...................................... 18,141
1,300 Tyco International ............................. 61,588
863 *Vishay International ........................... 32,721
----------
375,850
----------
REAL ESTATE INVESTMENT TRUST (0.2%)
200 Charles E. Smith Residential Realty, Inc. ...... 7,600
100 Federal Realty Investment Trust ................ 2,000
100 Felcor Lodging Trust Inc. ...................... 1,850
100 General Growth Properties ...................... 3,175
150 Glenborough Realty ............................. 2,615
100 Health Care Property Investors ................. 2,725
100 Highwood Properties Inc. ....................... 2,400
100 Indymac Mortgage Holdings ...................... 1,356
100 Liberty Property Trust ......................... 2,594
100 Mack-Cali Realty Corp. ......................... 2,569
100 Storage USA .................................... 2,950
----------
31,834
----------
Page 7 See Notes to Financial Statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW MEDIUM-TERM RETIREMENT FUND (continued)
RETAIL (2.8%)
550 *BJ's Wholesale Club Inc. ....................... $ 18,150
200 *CDW Computer Centers Inc. ...................... 12,500
250 Caseys General Store ........................... 2,594
200 Cash America International ..................... 1,475
350 *Dress Barn Inc. ................................ 7,744
750 *Federated Department Store ..................... 25,313
175 *Footstar Inc. .................................. 5,819
2,200 *Jack in the Box Inc. ........................... 54,175
175 *Men's Wearhouse ................................ 3,905
150 *Payless Shoesource Inc. ........................ 7,687
500 Pier 1 Imports Inc. ............................ 4,875
2,414 Supervalu Inc. ................................. 46,017
175 Tiffany & Company .............................. 11,812
2,850 Wal Mart Stores Inc. ........................... 164,231
100 *Williams Sonoma ................................ 3,244
475 *Zale Corp. ..................................... 17,337
----------
386,878
----------
TECHNOLOGY (16.9%)
100 *Acxiom Corporation ............................. 2,725
225 *Adaptec Inc. ................................... 5,119
500 *Adaptive Broadband ............................. 18,375
250 Adobe Systems Inc. ............................. 32,500
350 *Affiliated Computer Services ................... 11,572
1,175 *Altera Corp. ................................... 119,777
200 *American Management Systems .................... 6,566
1,750 *Andrew Corp. ................................... 58,734
400 *Anixter International .......................... 10,600
1,050 *Apple Computer Inc. ............................ 54,994
750 *Applied Materials Inc. ......................... 67,969
100 *Aspect Communications .......................... 3,931
150 *C-Cube Microsystems ............................ 2,944
275 *Ciber Inc. ..................................... 3,644
2,700 *Cisco Systems .................................. 171,619
100 *Cognex Corp. ................................... 5,175
775 Computer Associates International Inc. ......... 39,670
325 Computer Task Group ............................ 1,645
325 *Concord EFS Inc. ............................... 8,450
600 *Cypress Semiconductor .......................... 25,350
350 Dallas Semiconductors .......................... 14,262
800 *EMC Corp. ...................................... 61,550
425 *Filenet Corp. .................................. 7,809
1,200 First Data Corp. ............................... 59,550
325 *Fiserv Inc. .................................... 14,056
650 Gerber Scientific Inc. ......................... 7,475
350 *Gtech Holding Corp. ............................ 7,941
750 *Integrated Device Technology ................... 44,906
1,500 Intel Corp. .................................... 200,531
1,100 International Business Machines Corp. .......... 120,519
300 *International Rectifier Corp. .................. 16,800
275 *Intervoice-Brite Inc. .......................... 1,805
900 *Kemet Corp. .................................... 22,556
425 *Lexmark Holdings Cass A ........................ 28,581
300 *Microchip Technology Inc. ...................... 17,480
1,475 *Microsoft Corp. ................................ 118,000
600 *Midway Games Inc. .............................. 4,837
300 Nashua Corp. ................................... 2,475
250 *National Semiconductor ......................... 14,187
600 *Nextel Communications Inc. ..................... 36,713
675 *Novellus Systems Inc. .......................... 38,180
2,000 *Oracle Corporation ............................. 168,125
41 *People Soft Inc. ............................... 687
125 *Qlogic Corp. ................................... 8,258
350 *Rational Software .............................. 32,528
425 Reynolds & Reynolds Class A .................... 7,756
550 *S3 Incorporated ................................ 8,113
400 *Sanmina Corp. .................................. 34,200
1,100 Scientific Atlanta Inc. ........................ 81,950
675 *Siebel Systems Inc. ............................ 110,405
1,500 *Sun Microsystems Inc. .......................... 136,406
275 *Symantec Corp. ................................. 14,833
250 Symbol Technologies Inc. ....................... 13,500
150 Technitrol Inc. ................................ 14,531
675 *Teradyne Inc. .................................. 49,612
1,000 Texas Instruments Inc. ......................... 68,687
500 United Technologies ............................ 29,438
100 *Visx Inc. ...................................... 2,806
200 *Waters Corp. ................................... 24,962
175 *Xircom ......................................... 8,312
----------
2,306,681
----------
TRANSPORTATION (0.5%)
425 *Alaska Air Group ............................... 11,528
900 Delta Air Line Inc. ............................ 45,506
525 *J B Hunt Transportation Services Inc. .......... 8,105
242 Visteon Corp. .................................. 2,937
400 *Yellow Corp. ................................... 5,900
----------
73,976
----------
TELECOMMUNICATIONS (5.2%)
1,750 *ADC Telecommunications Inc. .................... 146,781
2,250 AT & T Corp. ................................... 71,156
100 *Adtran Inc. .................................... 5,988
975 Bell Atlantic Corp. ............................ 49,542
1,450 Bellsouth Corp. ................................ 61,806
200 Centurytel Inc. ................................ 5,750
1,550 *Comcast Corp Class A Special ................... 62,775
175 *DST System ..................................... 13,323
1,000 GTE Corporation ................................ 62,250
300 *General Communication .......................... 1,537
81 Harmonic Inc. .................................. 2,005
250 *Hispanic Broadcasting Corp. .................... 8,281
150 *Powerwave Technologies Inc. .................... 6,600
125 Telephone & Data Systems Inc. .................. 12,531
750 Time Warner Inc. ............................... 57,000
See Notes to Financial Statements Page 8
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW MEDIUM-TERM RETIREMENT FUND (continued)
250 *Univision Communications Inc. .................. $ 25,875
250 *Voicestream Wireless Corp. ..................... 29,074
300 *Western Wireless ............................... 16,350
1,499 *Worldcom Inc. .................................. 68,767
----------
707,391
----------
UTILITIES (3.6%)
2,375 Allegheny Energy Inc. .......................... 65,016
550 *Atmel Corp. .................................... 20,281
1,100 Coastal Corp. .................................. 66,963
700 Connectiv Inc. ................................. 10,894
900 Cooper Industries Inc. ......................... 29,306
300 DTE Energy Co. ................................. 9,169
700 Energy East Corp. .............................. 13,344
800 Exxon Mobil Corp Co. ........................... 62,800
1,000 FPL Group Inc. ................................. 49,500
225 Florida Progress Co. ........................... 10,547
550 GPU Inc. ....................................... 14,884
525 Mark IV Industries Inc. ........................ 10,959
550 *Noble Drilling Corp. ........................... 22,653
350 Northwest Natural Gas Co. ...................... 7,831
2,700 Occidental Petroleum Corp. ..................... 56,869
450 Pinnacle West Capital .......................... 15,244
700 *Santa Fe Snyder Corp. .......................... 7,962
600 Utilicorp United Inc. .......................... 11,925
----------
486,147
----------
Total Common Stocks
(Cost $6,956,089) ...................... 7,911,651
----------
OPEN END INVESTMENT COMPANY (5.1%)
(Cost $502,163)
50,000 BT EAFE Equity Index Fund. ..................... 696,500
----------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS & Agency Notes (27.3%)
U.S. Treasury Bond (1.4%)
$195,000 6.125% Due 8/15/29 ............................. 196,950
----------
U.S. TREASURY STRIPS (2.0%)
680,000 Due 2/15/15 .................................... 275,196
----------
U.S. TREASURY NOTES (19.6%)
940,000 5.250% Due 8/15/03 ............................. 911,208
120,000 5.500% Due 5/15/09 ............................. 114,824
230,000 5.625% Due 5/15/08 ............................. 221,879
80,000 5.875% Due 11/15/04 ............................ 78,837
90,000 6.000% Due 8/15/09 ............................. 89,283
1,135,000 6.125% Due 12/31/01 ............................ 1,129,507
115,000 6.500% Due 2/15/10 ............................. 118,935
----------
2,664,473
----------
FEDERAL AGENCY AND GOVERNMENT (4.3%)
510,000 Freddie Mac 6.750% Due 9/15/29 ................. 487,927
100,000 Federal National Mortgage Association
7.125% Due 3/15/07 ..................... 100,195
----------
588,122
----------
TOTAL U.S. GOVERNMENT OBLIGATIONS & Agency Notes
(Cost $3,632,203) ...................... 3,724,741
----------
CORPORATE DEBENTURES (12.1%)
FINANCE (11.7%)12.1%)
150,000 American General Finance 5.750% Due 11/1/03 .... 141,743
150,000 Barclay's Bank PLC Yankee 7.400% Due 12/15/09 .. 146,081
175,000 Bear Stearns Co Inc 7.625% Due 12/7/09 ......... 166,593
175,000 Ford Motor Credit 7.375% Due 10/28/09 .......... 169,272
200,000 GMAC Medium Term Note 5.375% Due 9/30/02 ....... 191,230
150,000 Lehman Brothers Holdings 7.750% Due 1/15/05..... 148,610
140,000 Merrill Lynch & Co. 5.870% Due 11/15/01 ........ 137,260
150,000 Morgan Stanley Dean Witter 7.125% Due 1/15/03 .. 149,039
125,000 Royal Bank of Scotland Plc 9.118% Due 3/31/49 .. 129,543
115,000 Salomon Smith Barney Holding 6.750% Due 2/15/03. 112,973
110,000 Sprint Capital Corp. 6.900% Due 5/1/19 ......... 97,808
----------
1,590,152
----------
INDUSTRIAL (0.4%)
60,000 Liberty Media Group 8.250% Due 2/1/30 .......... 55,371
----------
TOTAL CORPORATE DEBENTURES
(Cost $1,688,076) ...................... 1,645,523
----------
EURODOLLAR DEPOSIT (4.1%)
(Cost $556,000)
556,000 Societe General 6.400% Due 7/3/00 .............. 556,000
----------
TOTAL INVESTMENTS (106.6%)
(Cost $ 13,334,531) .................... 14,534,415
Liabilities in Excess of
of Other Assets (-6.6%) ...................... (893,856
-----------
TOTAL NET ASSETS (100.0%) ...................... $13,640,559
===========
Page 9 See Notes to Financial Statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW SHORT-TERM RETIREMENT FUND
COMMON STOCKS (36.3%)
BASIC MATERIALS (0.8%)
1,100 Boise Cascade Corp. ............................ $ 28,462
1,050 *Cytec Industries Inc. ......................... 25,922
800 Transocean Sedco Forex Inc. .................... 42,750
---------
97,134
---------
CONSUMER CYCLICALS (1.1%)
300 *Best Buy Inc. ................................. 18,975
1,250 Brunswick Corp. ................................ 20,703
1,350 Ford Motor Company ............................. 58,050
975 Sears Roebuck & Co. ............................ 31,809
---------
129,537
---------
CONSUMER NON CYCLICALS (2.4%)
475 Anheuser-Busch Companies Inc. .................. 35,477
575 Best Foods ..................................... 39,819
200 Corning Inc. ................................... 53,975
850 Newell Rubbermaid Inc. ......................... 21,887
725 Pepsico Inc. ................................... 32,217
1,700 Philip Morris Companies Inc. ................... 45,156
550 Procter & Gamble Co. ........................... 31,487
375 Quaker Oats .................................... 28,172
---------
288,190
---------
CONSUMER SERVICES (0.9%)
1,100 Darden Restaurants Inc. ........................ 17,875
400 Eastman Kodak Co. .............................. 23,800
900 Walt Disney Co. ................................ 34,931
600 Young & Rubicam Inc. ........................... 34,313
---------
110,919
---------
ENERGY (1.0%)
1,225 Royal Dutch Petroleum ADR ...................... 75,414
1,825 USX - Marathon Group New ....................... 45,739
---------
121,153
---------
FINANCE (4.6%)
500 AMBAC Financial Group Inc. ..................... 27,406
475 American International Group ................... 55,813
975 Cincinnati Financial Corp. ..................... 30,652
2,025 Citigroup Inc. ................................. 122,006
900 Federal National Mortgage Association .......... 46,969
1,500 Fleet Boston Financial Group Inc. .............. 51,000
2,650 Hibernia Corp Class A .......................... 28,819
925 Household International Inc. ................... 38,445
325 Merrill Lynch & Co Inc. ........................ 37,375
900 PNC Financial Services Group ................... 42,187
600 Paine Webber Group Inc. ........................ 27,300
450 State Street Corp. ............................. 47,728
---------
555,700
---------
HEALTH CARE (4.0%)
350 Baxter International ........................... 24,609
675 Cardinal Health Inc. ........................... 49,950
575 Eli Lilly & Co. ................................ 57,428
575 Johnson & Johnson .............................. 58,578
1,125 Merck & Co Inc. ................................ 86,203
425 *Pacificare Health Systems ...................... 25,580
2,675 Pfizer Inc. .................................... 128,400
900 Schering-Plough Corp. .......................... 45,450
50 Stryker Corp. .................................. 2,188
---------
478,386
---------
INDUSTRIAL (3.0%)
700 Exxon Mobil Corp. .............................. 54,950
3,450 General Electric Corp. ......................... 182,850
600 Georgia Pacific Co. ............................ 15,750
1,825 Occidental Petroleum Corp. ..................... 38,439
1,200 Sherwin Williams Co. ........................... 25,425
1,000 Tyco International Ltd. ........................ 47,375
---------
364,789
---------
Retail (2.0%)
825 *Federated Department Store .................... 27,844
1,100 Home Depot Inc. ................................ 54,931
1,375 *Jack in the Box Inc. .......................... 33,859
1,625 Supervalu Inc. ................................. 30,977
1,550 Wal Mart Stores Inc. ........................... 89,319
---------
236,930
---------
TECHNOLOGY (11.0%)
725 *Altera Corp. ................................... 73,905
1,400 *Andrew Corp. ................................... 46,988
800 *Apple Computer Inc. ............................ 41,900
525 *Applied Materials Inc. ......................... 47,578
2,050 *Cisco Systems .................................. 130,303
625 Computer Associates International Inc. ......... 31,992
600 *EMC Corp. ...................................... 46,162
900 First Data Corp. ............................... 44,662
825 Harris Corp. ................................... 27,019
1,225 Intel Corp. .................................... 163,767
800 International Business Machines Corp. .......... 87,650
225 *Lexmark Holdings Class A ....................... 15,131
1,150 *Microsoft Corp. ................................ 92,000
1,200 *Oracle Corporation ............................. 100,875
850 Scientific Atlanta Inc. ........................ 63,325
400 *Siebel Systems Inc. ............................ 65,425
1,050 *Sun Microsystems Inc. .......................... 95,484
450 *Teradyne Inc. .................................. 33,075
800 Texas Instruments Inc. ......................... 54,950
875 United Technologies ............................ 51,516
---------
1,313,707
---------
See Notes to Financial Statements Page 10
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
SCHEDULES OF INVESTMENTS AT JUNE 30, 2000 - (UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
TOMORROW SHORT-TERM RETIREMENT FUND (continued)
TELECOMMUNICATION (4.0%)
1,200 *ADC Telecommunications ......................... $ 100,650
1,750 A T & T Corp. .................................. 55,344
1,375 Bell Atlantic Corp. ............................ 69,867
1,450 Bellsouth Corp. ................................ 61,806
1,175 Comcast Corp Class A Special ................... 47,588
450 *Nextel Communications Inc. ..................... 27,534
600 Time Warner Inc. ............................... 45,600
1,475 *Worldcom Inc. .................................. 67,666
---------
476,055
---------
TRANSPORTATION (0.3%)
650 Delta Air Lines Inc. ........................... 32,866
177 Visteon Corp. .................................. 2,143
---------
35,009
---------
UTILITY (1.2%)
700 Coastal Corp. .................................. 42,612
1,050 Constellation Energy Group ..................... 34,191
700 Cooper Industries Inc. ......................... 22,794
850 FPL Group Inc. ................................. 42,075
---------
141,672
---------
Total Common Stock
(Cost $3,928,690) ...................... 4,349,181
---------
PRINCIPAL
AMOUNT
------
U.S. GOVERNMENT OBLIGATIONS AND AGENCY NOTES (30.5%)
U S TREASURY STRIPS (6.0%)
$1,795,000 Due 2/15/15 .................................... 726,437
---------
U.S. TREASURY NOTES (15.1%)
1,500,000 5.250% Due 8/15/03 ............................. 1,454,055
360,000 6.125% Due 12/31/01 ............................ 358,258
---------
1,812,313
---------
FEDERAL AGENCY AND GOVERNMENT (9.4%)
1,175,000 Freddie Mac Note 6.750% Due 9/15/29 ............ 1,124,146
---------
TOTAL U.S. GOVERNMENT OBLIGATIONS & Agency Notes
(Cost $3,622,164) ...................... $3,662,896
----------
CORPORATE DEBENTURES (32.2%)
FINANCE (30.3%)
300,000 Associates Corp NA 5.750% Due 11/1/03 .......... 285,045
575,000 Barclays Bank Plc Yankee 7.400% Due 12/15/09 ... 559,975
235,000 Bear Stearns Companies Inc. 6.500% Due 7/5/00 .. 235,000
160,000 Beneficial Corp. 6.250% Due 2/18/03 ............ 155,160
50,000 Ford Motor Credit 6.125% Due 1/9/06 ............ 46,467
225,000 Ford Motor Credit 7.375% Due 10/28/09 .......... 217,636
200,000 G.E. Capital Corp. 8.750% Due 5/21/07 .......... 216,972
450,000 General Motors Acceptance Corp. 5.750%
Due 11/10/03 ........................... 426,082
285,000 Merrill Lynch & Co. 5.870% Due 11/15/01 ........ 279,423
400,000 Morgan Stanley 6.090% Due 3/9/11 ............... 397,144
250,000 +Nordbanken 8.950% Due 11/29/49 ................. 249,561
225,000 Royal Bank of Scotland Plc 9.118% Due 3/31/49 .. 233,178
215,000 Salomon Inc. 6.700% Due 7/5/00 ................. 215,000
120,000 USL Capital Corp. 6.500% Due 12/1/03 ........... 115,946
---------
3,632,589
---------
REAL ESTATE INVESTMENT TRUST (1.9%)
235,000 Carramerica Realty Corp. 6.625% Due 10/1/00 .... 234,126
---------
TOTAL CORPORATE DEBENTURES
(Cost $3,953,517) ...................... 3,866,715
---------
EURODOLLAR DEPOSIT (5.2%)
(Cost $621,000)
621,000 Societe General 6.400% Due 7/3/00 .............. 621,000
---------
TOTAL INVESTMENTS (104.2%)
(Cost $12,125,371) ..................... 12,499,792
LIABILITIES IN EXCESS
OF OTHER ASSETS (-4.2%) ...................... (503,716)
----------
TOTAL NET ASSETS (100.0%) $11,996,076
===========
<FN>
* Non-income producing security.
+ SEC Rule 144A Security. Such security has limited markets and is traded among
institutional buyers.
</FN>
</TABLE>
Page 11 See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES AT JUNE 30, 2000 - (Unaudited)
LONG- MEDIUM- SHORT-
TERM TERM TERM
RETIREMENT RETIREMENT RETIREMENT
------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C>
Investments at value # ................... $ 9,645,238 $ 14,534,415 $ 12,499,792
Cash ..................................... 679 747 308
Receivable for Fund shares sold .......... 0 252 133
Receivable from Adviser .................. 15,960 13,544 13,758
Dividends and interest receivable ........ 30,593 79,981 114,386
Deferred organizational costs and
prepaid expenses ................. 5,700 6,090 6,174
------------ ------------ ------------
9,698,170 14,635,029 12,634,551
------------ ------------ ------------
LIABILITIES
Payable for Fund shares redeemed ......... 551,074 942,174 581,189
Accrued distribution fees payable
(Adviser Shares) ................. 5,566 8,088 8,930
Accrued service fees payable
(Institutional Shares) ........... 7,367 10,158 8,473
Other accrued expenses ................... 30,221 34,050 39,883
------------ ------------ ------------
594,228 994,470 638,475
------------ ------------ ------------
NET ASSETS ............................... $ 9,103,942 $ 13,640,559 $ 11,996,076
============ ============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest (par $0.001) $ 990 $ 1,447 $ 1,181
Paid-in surplus .......................... 7,723,099 11,938,737 10,726,289
Accumulated undistributed net
investment income ................ 34,558 162,941 333,491
Undistributed realized gains on
investments ...................... 373,828 337,550 560,694
Net unrealized appreciation on investments 971,467 1,199,884 374,421
------------ ------------ ------------
Net Assets ............................... $ 9,103,942 $ 13,640,559 $ 11,996,076
============ ============ ============
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE:
ADVISER SHARES:
Net Assets ............................... $ 7,946,865 $ 11,829,989 $ 10,878,686
Shares of beneficial interest issued
and outstanding .................. 865,508 1,249,959 1,071,694
------------ ------------ ------------
Net asset value per share ................ $ 9.18 $ 9.46 $ 10.15
============ ============ ============
INSTITUTIONAL SHARES:
Net Assets ............................... $ 1,157,077 $ 1,810,570 $ 1,117,390
Shares of beneficial interest issued
and outstanding .................. 124,092 196,645 109,389
------------ ------------ ------------
Net asset value per share ................ $ 9.32 $ 9.21 $ 10.21
============ ============ ============
# INVESTMENTS AT COST .................... 8,673,771 13,334,531 12,125,371
UNREALIZED APPRECIATION/(DEPRECIATION): *
Gross appreciation ............... 1,502,149 1,794,971 714,851
Gross depreciation ............... (530,682) (595,087) (340,430)
------------ ------------ ------------
NET UNREALIZED APPRECIATION ...... 971,467 1,199,884 374,421
============ ============ ============
<FN>
* Based on cost of securities for Federal Income tax purposes which does
not differ from book cost.
</FN>
</TABLE>
--------------------------------------------------------------------------------
Page 12 See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2000 - (Unaudited)
LONG-TERM MEDIUM-TERM SHORT-TERM
RETIREMENT RETIREMENT RETIREMENT
-------------------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Dividends .................................. $ 37,041 $ 45,618 $ 39,373
Interest ................................... 70,885 191,831 454,668
--------- --------- ---------
107,926 237,449 494,041
--------- --------- ---------
EXPENSES:
Investment advisory fees - Note 5 .......... 36,081 55,001 77,674
Fund accounting fees ....................... 22,205 22,241 23,315
Registration fees and expenses ............. 6,797 6,813 7,460
Professional fees .......................... 11,734 13,986 16,443
Transfer agent fees and expenses
(Advisor Shares) ................... 12,197 12,010 12,236
Transfer agent fees and expenses
(Institutional Shares) ............. 12,411 12,264 12,310
Distribution fees (Adviser Shares) - Note 5 19,366 29,757 28,320
Custodian fees and expenses - Note 7 ....... 6,125 8,852 7,437
Amortization of organization expenses ...... 4,734 4,727 4,727
Shareholders' reports ...................... 2,042 1,848 2,145
Trustees' fees and expenses ................ 3,804 3,854 3,928
Administration fees - Note 5 ............... 4,330 6,600 9,321
Service fees (Institutional Shares) - Note 5 1,532 972 9,291
Other expenses ............................. 1,692 2,844 2,267
--------- --------- ---------
TOTAL EXPENSES ............................. 145,050 181,769 216,874
Less fees waived by Adviser and
Administrator - Note 5 ............. (40,377) (44,225) (34,579)
Less expenses reimbursed
by Adviser - Note 5 ................ (20,067) (11,384) (11,663)
Less expenses paid indirectly - Note 7 ..... (3,538) (3,431) (3,825)
--------- --------- ---------
NET EXPENSES ............................... 81,068 122,729 166,807
--------- --------- ---------
NET INVESTMENT INCOME ...................... 26,858 114,720 327,234
--------- --------- ---------
REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS
Net realized gain on investments ........... 349,027 255,840 506,984
Change in unrealized appreciation/
(depreciation) on investments ...... (176,338) (129,304) (455,496)
--------- --------- ---------
NET GAIN ON INVESTMENTS .................... 172,689 126,536 51,488
--------- --------- ---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .................... $ 199,547 $ 241,256 $ 378,722
========= ========= =========
-------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements Page 13
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS - (Unaudited)
<TABLE>
<CAPTION>
Long-Term Medium-Term
Retirement Retirement
----------------------------------------------------------------------------------------------------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
6/30/00* 12/31/99 6/30/00* 12/31/99
-------- -------- -------- --------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ................................ $ 26,858 $ 62,488 $ 114,720 $ 291,316
Net realized gain
on investments ............................... 349,027 892,051 255,840 1,036,935
Change in unrealized appreciation/
(depreciation) on investments ................ (176,338) (45,296) (129,304) (593,919)
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .................... 199,547 909,243 241,256 734,332
------------ ------------ ------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Adviser Shares ....................................... 0 (40,650) 0 (216,431)
Institutional Shares ................................. 0 (22,314) 0 (62,826)
------------ ------------ ------------ ------------
TOTAL DIVIDENDS TO NET INVESTMENT INCOME:
SHAREHOLDERS FROM NETENT INCOME:
INVESTMENT INCOME ............................ 0 (62,964) 0 (279,257)
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Adviser Shares ....................................... 0 (723,406) 0 (852,199)
Institutional Shares ................................. 0 (180,540) 0 (188,477)
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS FROM NET
REALIZED GAINS ............................... 0 (903,946) 0 (1,040,676)
------------ ------------ ------------ ------------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
Received on issuance:
Shares sold .......................................... 2,106,928 3,377,686 1,663,445 3,578,706
Shares issued in reinvestment
of dividends and distributions ............... 0 967,753 0 1,319,933
Shares redeemed ...................................... (3,319,534) (3,008,583) (4,654,642) (4,815,479)
------------ ------------ ------------ ------------
NET INCREASE/(DECREASE) FROM
CAPITAL SHARE TRANSACTIONS ................... (1,212,606) 1,336,856 (2,991,197) 83,160
------------ ------------ ------------ ------------
TOTAL INCREASE/(DECREASE)ACTIONS
IN NET ASSETS ................................ (1,013,059) 1,279,189 (2,749,941) (502,441)
NET ASSETS:
Beginning of year .................................... 10,117,001 8,837,812 16,390,500 16,892,941
------------ ------------ ------------ ------------
End of period ........................................ $ 9,103,942 $ 10,117,001 $ 13,640,559 $ 16,390,500
============ ============ ============ ============
+ Includes undistributed
net investment income ........................ $ 34,558 $ 7,700 $ 162,941 $ 48,222
------------ ------------ ------------ ------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Short-Term
Retirement
--------------------------------------------------------------------------------------
Six
Months Year
Ended Ended
6/30/00* 12/31/99
-------- --------
OPERATIONS:
<S> <C> <C>
Net investment income ................................ $ 327,234 $ 994,163
Net realized gain
on investments ............................... 506,984 1,222,327
Change in unrealized appreciation/
(depreciation) on investments ................ (455,496) (1,463,153)
------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .................... 378,722 753,337
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Adviser Shares ....................................... 0 (388,593)
Institutional Shares ................................. 0 (580,239)
------------ ------------
TOTAL DIVIDENDS TO
SHAREHOLDERS FROM NET
INVESTMENT INCOME ............................ 0 (968,832)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Adviser Shares ....................................... 0 (576,190)
Institutional Shares ................................. 0 (712,866)
------------ ------------
TOTAL DISTRIBUTIONS FROM NET
REALIZED GAINS ............................... 0 (1,289,056)
------------ ------------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
Received on issuance:
Shares sold .......................................... 1,841,160 6,753,326
Shares issued in reinvestment
of dividends and distributions ............... 0 2,257,888
Shares redeemed ...................................... (22,020,834) (8,974,365)
------------ ------------
NET INCREASE/(DECREASE) FROMN SHARES OF
CAPITAL SHARE TRANSACTIONS ................... (20,179,674) 36,849
------------ ------------
TOTAL INCREASE/(DECREASE)
IN NET ASSETS ................................ (19,800,952) (1,467,702)
NET ASSETS:
Beginning of year .................................... 31,797,028 33,264,730
------------ ------------
End of period ........................................ $ 11,996,076 $ 31,797,028
============ ============
+ Includes undistributed
net investment income ........................ $ 333,491 $ 6,258
------------ ------------
<FN>
* Unaudited.
</FN>
</TABLE>
--------------------------------------------------------------------------------
Page 14 See Notes to Financial Statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
NOTES TO FINANCIAL STATEMENTS - (Unaudited)
1. GENERAL
The Tomorrow Long-Term Retirement Fund ("Long-Term Fund"), Tomorrow
Medium-Term Retirement Fund ("Medium-Term Fund"), Tomorrow Short-Term Retirement
Fund ("Short-Term Fund"), are separate funds of the Tomorrow Funds Retirement
Trust (the "Trust"). The Trust is a Delaware business trust registered under the
Investment Company Act of 1940, as amended (the "Act"), as an open-end
investment company. All of the funds are diversified. The accompanying financial
statements and notes relate to the Long-Term Fund, Medium-Term Fund and
Short-Term Fund (collectively the "Funds").
The Trust offers two classes of shares: Adviser Class Shares and
Institutional Class Shares. Adviser Shares and Institutional Shares are
substantially the same except that Adviser Shares bear the fees payable under a
plan adopted by the Trust's Board of Trustees pursuant to Rule 12b-1 under the
Act (the "Distribution Plan") at an annual rate of up to 0.50% of the average
daily net assets attributable to the Adviser Shares; Institutional Shares bear
the fees that are payable under a Service Plan (the "Service Plan") at an annual
rate of up to 0.25% of the average daily net assets attributable to the
Institutional Shares. In addition to fees paid pursuant to the Distribution Plan
and Service Plan, each class also bears the expense associated with transfer
agent fees.
Investment income, expenses (other than expenses incurred under the
Distribution Plan, the Service Plan and transfer agent fees and expenses), and
realized and unrealized gains and losses on investments of a Fund are allocated
to the separate classes of shares based upon their relative net asset value on
the date income is earned or expenses and realized and unrealized gains and
losses are incurred.
The Funds first commenced offering Adviser Shares on March 7, 1996 and
Institutional Shares on April 2, 1996.
2. SIGNIFICANT ACCOUNTING POLICIES
PORTFOLIO VALUATION
-------------------
COMMON STOCK - Securities listed or admitted to trading on a national
securities exchange, including options, are valued at the last sale price on
such exchange as of the close of regular trading on the New York Stock Exchange
("NYSE") on each day that the Funds calculate their net asset values. Unlisted
securities and listed securities for which there are no sales reported on the
valuation date are valued at the mean between the most recent bid and ask
prices.
BONDS - Bonds and other fixed income securities (other than short-term
obligations but including listed issues) in the Funds' portfolios are valued by
a pricing service which utilizes both dealer-supplied valuations and electronic
data processing techniques which take into account appropriate factors such as
institutional-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data, without exclusive reliance upon quoted prices, exchange or
over-the-counter prices, when such valuations are believed to reflect the market
value of such securities.
Page 15
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
NOTES TO FINANCIAL STATEMENTS - (Unaudited) - continued
MONEY MARKET SECURITIES - Investments in money market and other
short-term (60 days or less) securities are valued at amortized cost, which has
been determined by the Trust's Board of Trustees to represent the fair market
value of such securities.
FOREIGN SECURITIES - Securities listed or admitted to trading on an
international securities exchange, including options, are valued at the last
sale price, at the close of the primary international exchange on the day that
the Fund's calculate their net asset values. Unlisted foreign securities and
listed foreign securities for which there are no sales reported on the valuation
date are valued at the mean between the most recent bid and asked prices.
Certain risks result from investing in foreign securities in addition
to the usual risk inherent in domestic investments. Such risks include future
political, economical and currency exchange developments including restrictions
and changes in foreign law.
FUTURES - A futures contract is an agreement between two parties to buy
and sell a security at a set price on a future date. Upon entering into such a
contract, a Fund is required to pledge to the broker an amount of cash and/or
securities equal to the minimum "initial margin" requirements of the exchange.
Pursuant to the contract, the Fund agrees to receive from, or pay to the broker,
an amount of cash equal to the daily fluctuation in value of the contract. Such
a receipt or payment is known as a "variation margin" and is recorded by each
Fund as an unrealized gain or loss. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed. The
Fund is also required to fully collateralize futures contracts purchased. The
Fund only enters into futures contracts which are traded on exchanges.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
-------------------------------------------
Security transactions are recorded on a trade date basis. Realized
gains and losses from security transactions are recorded utilizing the
identification method. Interest income is recognized on an accrual basis and
dividend income is recognized on ex-dividend date. Discounts on fixed income
securities are accreted to interest income over the life of the security or
until an applicable call date if sooner, with a corresponding increase in cost
basis. During the six months ended June 30, 2000, none of the Funds in the Trust
entered into the following transactions: futures, options, forward currency
contracts or foreign currency transactions.
FEDERAL INCOME TAXES
--------------------
Each Fund's policy is to comply with the requirements of the Internal
Revenue Code that are applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Accordingly, no
federal tax or excise tax provisions are required.
The federal income tax basis of investments approximates cost.
DISTRIBUTIONS TO SHAREHOLDERS
-----------------------------
Dividends from Net Investment Income - Dividends from net investment
income are declared and paid annually when available for each Fund and are
recorded on ex-dividend date.
Page 16
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
NOTES TO FINANCIAL STATEMENTS - (Unaudited) - continued
DISTRIBUTIONS FROM CAPITAL GAINS - Distributions from capital gains are
declared by December 31 of the year in which they are earned and are paid by
January 31 of the following year. However, to the extent that the net realized
gains of a Fund can be offset by capital loss carryovers of that Fund, such
gains will not be distributed.
The amounts of dividends from net investment income and distributions
from net realized gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions to shareholders which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or net
distributions in excess of net realized gains. To the extent they exceed net
investment income and net realized gains for tax purposes, they are reported as
distributions of capital.
USE OF ESTIMATES
----------------
Estimates and assumptions are required to be made regarding assets,
liabilities and changes in net assets resulting from operations when financial
statements are prepared. Changes in the economic environment, financial markets
and any other parameters used in determining these estimates could cause actual
results to differ from these amounts.
3. ORGANIZATIONAL EXPENSES
Weiss, Peck & Greer. L.L.C. ("WPG"), the Funds' investment Adviser,
paid the organizational expenses of the Funds in the amount of approximately
$141,000 ($47,000 each for the Long-Term, Medium-Term and Short-Term Funds).
4. EXPENSES
The Trust accounts separately for the assets, liabilities and
operations of each Fund. Direct expenses of a Fund are charged to that Fund
while general Trust expenses are allocated among the Trust's respective Funds.
5. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust, with respect to each Fund, has entered into an Investment
Advisory Agreement with WPG which entitles WPG to receive a fee, which is
accrued daily and paid monthly, at an annual rate of 0.75% of each Fund's
average daily net assets. For the six months ended June 30, 2000, WPG
voluntarily agreed not to impose its entire advisory fee applicable to the
Long-Term Fund, and waived $44,225 and $34,578 from the Medium-Term Fund and
Short-Term Fund, respectively.
Page 17
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
NOTES TO FINANCIAL STATEMENTS - (Unaudited) - continued
WPG has agreed to voluntarily limit each Fund's total operating
expenses, (excluding taxes, brokerage commissions, interest, dividends paid on
securities sold short and extraordinary legal fees and expenses) to 1.75% of the
average daily net assets for the Adviser Class Shares and 1.50% of the average
daily net assets for the Institutional class shares. WPG will reduce its
advisory fee (but not below $0) when the total operating expenses exceed these
limits.
The Trust has entered into an Administration Agreement with WPG. For
its administrative services, WPG is entitled to receive a fee, which is accrued
daily and paid monthly, at an annual rate of 0.09% of each Fund's average daily
net assets. WPG voluntarily agreed not to impose its entire administration
services fee applicable to the Funds for the six months ended June 30, 2000.
The Trust with respect to the Adviser Class of each Fund has adopted a
Distribution Plan pursuant to Rule 12b-1 under the Act. Under the Distribution
Plan, each Fund pays distribution and service fees at an aggregate annual rate
of up to 0.50% of the daily average net assets attributable to the Adviser Class
Shares. Up to 0.25% of this fee is for service fees and is intended to be
compensation for personnel services and/or account maintenance services. The
remaining amount is for distribution fees and is intended to compensate WPG for
its services and expenses associated with serving as principal underwriter of
the Adviser Class. These payments are borne solely by the Adviser Class Shares.
For the six months ended June 30, 2000 payments pursuant to the Distribution
Plan from the Long-Term Fund, Medium-Term Fund and Short-Term Fund amounted to
$19,366, $29,757 and $28,320, respectively. Of these amounts, WPG earned $7,866,
$12,695 and $11,656, respectively.
The Trust with respect to the Institutional Class of each Fund has also
adopted a Service Plan (the "Institutional Service Plan") pursuant to which each
Fund has agreed to pay fiduciaries of retirement plans investing in the Funds a
fee for various services and/or account maintenance services relating to the
Institutional Class Shares. The Institutional Service Plan fee is accrued daily
and paid quarterly at an annual rate of up to 0.25% of the average daily net
asset value attributable to the Institutional Class Shares of each Fund, and is
borne solely by the Institutional Class Shares.
6. SECURITIES TRANSACTIONS
Sale proceeds, cost of securities purchased, (other than short term
investments and options written), total commissions and commissions received by
WPG on such transactions for the six months ended June 30, 2000 were as follows:
PROCEEDS COST OF COMMISSIONS
OF SECURITIES SECURITIES TOTAL RECEIVED
SOLD PURCHASED COMMISSIONS BY WPG
---- --------- ----------- ------
Long-Term $3,562,502 $3,046,292 $2,389 $2,047
Medium-Term 9,886,596 7,769,343 3,883 3,417
Short-Term 35,535,806 16,871,317 6,705 2,728
Page 18
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
NOTES TO FINANCIAL STATEMENTS - (Unaudited) - continued
7. CUSTODIAN FEES
Each Fund has entered into an expense offset arrangement with its
custodian wherein it receives credit toward the reduction of custodian fees
whenever there are uninvested cash balances. The Funds' custodian fee and
related offset for the six months ended June 30, 2000 were as follows:
Custodian Fee Offset Credit
------------- -------------
Long-Term $6,125 $3,538
Medium-Term 8,852 3,431
Short-Term 7,437 3,825
The Funds could have invested its cash balances elsewhere if it had not
agreed to a reduction in fees under the expense offset agreement with its
custodian
8. CAPITAL SHARE TRANSACTIONS
Transaction in shares of the Funds are summarized below:
<TABLE>
<CAPTION>
LONG-TERM
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
ADVISER CLASS SHARES
<S> <C> <C> <C> <C>
Sold .......................... 187,700 $ 1,666,347 284,126 $ 2,596,712
Reinvested from dividends
and distributions ..... 0 0 88,326 764,019
Redeemed ...................... (221,401) (1,956,873) (258,737) (2,386,405)
-------- ---------- -------- ----------
Net increase/(decrease) -
Adviser Class ......... (33,701) ($ 290,526) 113,715 $ 974,326
-------- ---------- -------- ----------
INSTITUTIONAL CLASS SHARES
Sold .......................... 48,875 $ 440,581 83,542 $ 780,974
Reinvested from dividends
and distributions ..... 0 0 23,231 203,734
Redeemed ...................... (147,482) (1,362,661) (66,795) (622,178)
-------- ---------- -------- ----------
Net increase/(decrease) -
Institutional Class ... (98,607) ($ 922,080) 39,978 $ 362,530
-------- ---------- -------- ----------
Net increase/(decrease) in Fund (132,308) ($1,212,606) 153,693 $ 1,336,856
-------- ---------- -------- ----------
</TABLE>
Page 19
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
NOTES TO FINANCIAL STATEMENTS - (Unaudited) - continued
---------------------------------------------------------------------------------------------------------------
MEDIUM-TERM
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
ADVISER CLASS SHARES
<S> <C> <C> <C> <C>
Sold ......................................... 136,885 $ 1,257,187 230,644 $ 2,192,178
Reinvested from dividends
and distributions .................... 0 0 117,747 1,068,630
Redeemed ..................................... (326,741) (2,991,912) (418,915) (4,031,392)
--------- ------------ --------- ------------
Net decrease - Adviser Class ................. (189,856) $ (1,734,725) (70,524) $ (770,584)
--------- ------------ --------- ------------
INSTITUTIONAL CLASS SHARES
Sold ......................................... 45,369 $ 406,258 147,133 $ 1,386,528
Reinvested from dividends
and distributions .................... 0 0 28,550 251,303
Redeemed ..................................... (182,072) (1,662,730) (83,754) (784,087)
--------- ------------ --------- ------------
Net increase/(decrease) -
Institutional Class .................. (136,703) ($ 1,256,472) 91,929 $ 853,744
--------- ------------ --------- ------------
Net increase/(decrease) in Fund .............. (326,559) ($ 2,991,197) 21,405 $ 83,160
--------- ------------ --------- ------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
SHORT-TERM
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
ADVISER CLASS SHARES
Sold ......................................... 86,591 $ 859,471 210,906 $ 2,217,623
Reinvested from dividends
and distributions ........................... 0 0 96,963 964,783
Redeemed ..................................... (375,935) (3,716,122) (583,021) (6,119,476)
--------- ------------ --------- ------------
Net decrease - Adviser Class ................. (289,344) ($ 2,856,651) (275,152) ($ 2,937,070)
--------- ------------ --------- ------------
INSTITUTIONAL CLASS SHARES
Sold ......................................... 99,516 $ 981,689 469,584 $ 4,535,703
Reinvested from dividends
and distributions ........................... 0 0 129,700 1,293,105
Redeemed ..................................... (1,809,240) (18,304,712) (308,892) (2,854,889)
--------- ------------ --------- ------------
Net increase/(decrease) -
Institutional Class .................. (1,709,724) ($17,323,023) 290,392 $ 2,973,919
--------- ------------ --------- ------------
Net increase/(decrease) in Fund .............. (1,999,068) ($20,179,674) 15,240 $ 36,849
--------- ------------ --------- ------------
---------------------------------------------------------------------------------------------------------------
</TABLE>
Page 20
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
NOTES TO FINANCIAL STATEMENTS - (UNAUDITED) - continued
9. SUBSEQUENT EVENT
On April 19, 2000 the board of trustees (the "Trustees") of the
Tomorrow Funds Retirement Trust (the "Trust") voted to liquidate and terminate
the Trust. The Trustees believed that the assets of the funds had fallen below a
level sufficient for the funds to be operated on a cost effective basis. The
liquidation was completed on July 31, 2000.
Page 21
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Financial Highlights
<TABLE>
<CAPTION>
$ PER SHARE
NET RATIO OF
NET REALIZED TOTAL DIVIDENDS DISTRI- NET
ASSET AND INCOME FROM BUTIONS ASSET TOTAL
VALUE AT NET UNREALIZED FROM NET FROM TOTAL VALUE AT NET
BEGINNING INVESTMENT GAINS INVESTMENT INVESTMENT CAPITAL DISTRI- END OF TOTAL ASSETS
OF PERIOD INCOME SECURITIES OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN (000'S
--------- ------ --------------------- ------ ----- ------- ------ ------ ------
LONG-TERM RETIREMENT
ADVISER SHARES
For the six months ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
June 30, 2000# $8.99 0.02 0.17 0.19 0.00 0.00 0.00 $9.18 2.11% $7,947
For the year ended
December 31, 1999 9.10 0.04 0.79 0.83 (0.05) (0.89) (0.94) 8.99 9.53 8,086
For the year ended
December 31, 1998 7.98 0.10 1.14 1.24 (0.07) (0.05) (0.12) 9.10 15.58 7,150
For the year ended
December 31, 1997 6.98 0.09 1.62 1.71 (0.08) (0.63) (0.71) 7.98 24.50 4,194
For the period March 7, 1996*
through December 31, 1996 6.50 0.04 0.55 0.59 (0.06) (0.05) (0.11) 6.98 9.08 978
INSTITUTIONAL SHARES
For the six months ended
June 30, 2000# 9.12 0.07 0.13 0.20 0.00 0.00 0.00 9.32 2.19 1,157
For the year ended
December 31, 1999 9.23 0.08 0.81 0.89 (0.11) (0.89) (1.00) 9.12 10.07 2,031
For the year ended
December 31, 1998 8.07 0.13 1.17 1.30 (0.09) (0.05) (0.14) 9.23 16.16 1,687
For the year ended
December 31, 1997 7.05 0.06 1.69 1.75 (0.10) (0.63) (0.73) 8.07 24.84 1,088
For the period April 2, 1996*
through December 31, 1996 6.51 0.04 0.55 0.59 0.00 (0.05) (0.05) 7.05 9.03 282
MEDIUM-TERM RETIREMENT
Adviser Shares
For the six months ended
June 30, 2000# 9.29 0.08 0.09 0.17 0.00 0.00 0.00 9.46 1.83 11,830
For the year ended
December 31, 1999 9.68 0.17 0.23 0.40 (0.16) (0.63) (0.79) 9.29 4.32 13,383
For the year ended
December 31, 1998 8.85 0.18 1.22 1.40 (0.15) (0.42) (0.57) 9.68 15.94 14,617
For the year ended
December 31, 1997 8.07 0.13 1.40 1.53 (0.13) (0.62) (0.75) 8.85 18.96 11,987
For the period March 7, 1996*
through December 31, 1996 7.50 0.04 0.63 0.67 (0.03) (0.07) (0.10) 8.07 8.89 3,416
INSTITUTIONAL SHARES
For the six months ended
June 30, 2000# 9.02 0.10 0.09 0.19 0.00 0.00 0.00 9.21 2.11 1,811
For the year ended
December 31, 1999 9.43 0.19 0.24 0.43 (0.21) (0.63) (0.84) 9.02 4.77 3,008
For the year ended
December 31, 1998 8.63 0.22 1.18 1.40 (0.18) (0.42) (0.60) 9.43 16.36 2,276
For the year ended
December 31, 1997 7.86 0.24 1.29 1.53 (0.15) (0.61) (0.76) 8.63 19.48 1,165
For the period April 2, 1996*
through December 31, 1996 7.53 0.10 0.55 0.65 (0.25) (0.07) (0.32) 7.86 8.54 265
</TABLE>
<TABLE>
<CAPTION>
RATIOS
RATIO INFORMATION
ASSUMING NO FEE WAIVERS,
REIMBURSEMENTS OR
CUSTODY FEE
RATIO OF EARNINGS CREDIT RECEIVED
RATIO OF NET ------------------------
EXPENSES INCOME TO RATIO OF RATIO OF
TO AVERAGE AVERAGE PORTFOLIO EXPENSES NET INCOME
NET NET TURNOVER TO AVERAGE TO AVERAGE
ASSETS ASSETS RATE NET ASSETS NET ASSETS
------ ------ ---- ---------- ----------
<S> <C> <C> <C> <C> <C>
ADVISER SHARES
For the six months ended
June 30, 2000# 1.75%+ 0.49%+ 65.29%+ 2.89%+ -0.65%+
For the year ended
December 31, 1999 1.75 0.57 104.49 2.89 -0.57
For the year ended
December 31, 1998 1.75 1.17 60.96 3.25 -0.33
For the year ended
December 31, 1997 1.75 1.30 66.64 5.61 -2.56
For the period March 7, 1996*
through December 31, 1996 1.75+ 1.63+ 25.09 45.36+ -41.98+
INSTITUTIONAL SHARES
For the six months ended
June 30, 2000# 1.41+ 0.82+ 65.29+ 3.54+ -1.31+
For the year ended
December 31, 1999 1.29 1.03 104.49 3.46 -1.13
For the year ended
December 31, 1998 1.27 1.64 60.96 4.09 -1.18
For the year ended
December 31, 1997 1.45 1.67 66.64 7.52 -4.40
For the period April 2, 1996*
through December 31, 1996 1.50+ 1.97+ 25.09 40.49+ -37.02+
MEDIUM-TERM RETIREMENT
Adviser Shares
For the six months ended
June 30, 2000# 1.75+ 1.48+ 107.69+ 2.43+ 0.80+
For the year ended
December 31, 1999 1.75 1.63 208.58 2.21 1.17
For the year ended
December 31, 1998 1.75 1.89 155.74 2.23 1.41
For the year ended
December 31, 1997 1.75 1.80 90.67 2.92 0.63
For the period March 7, 1996*
through December 31, 1996 1.75+ 1.73+ 22.56 15.88+ -12.40+
INSTITUTIONAL SHARES
For the six months ended
June 30, 2000# 1.31+ 1.93+ 107.69+ 2.67+ 0.57+
For the year ended
December 31, 1999 1.31 2.10 208.58 2.54 0.87
For the year ended
December 31, 1998 1.28 2.38 155.74 2.79 0.87
For the year ended
December 31, 1997 1.39 2.33 90.67 4.41 -0.69
For the period April 2, 1996*
through December 31, 1996 1.50+ 1.96+ 22.56 20.86+ -17.40+
</TABLE>
Page 22
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Financial Highlights
<TABLE>
<CAPTION>
$ PER SHARE
NET RATIO OF
NET REALIZED TOTAL DIVIDENDS DISTRI- NET
ASSET AND INCOME FROM BUTIONS ASSET TOTAL
VALUE AT NET UNREALIZED FROM NET FROM TOTAL VALUE AT NET
BEGINNING INVESTMENT GAINS INVESTMENT INVESTMENT CAPITAL DISTRI- END OF TOTAL ASSETS
OF PERIOD INCOME SECURITIES OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN (000'S
--------- ------ --------------------- ------ ----- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHORT-TERM RETIREMENT
ADVISER SHARES
For the six months ended
June 30, 2000# 9.99 0.19 (0.03) 0.16 0.00 0.00 0.00 10.15 1.60 10,879
For the year ended
December 31, 1999 10.49 0.33 (0.11) 0.22 (0.29) (0.43) (0.72) 9.99 2.12 13,590
For the year ended
December 31, 1998 9.78 0.30 0.89 1.19 (0.26) (0.22) (0.48) 10.49 12.22 17,157
For the year ended
December 31, 1997 9.16 0.22 1.47 1.69 (0.20) (0.87) (1.07) 9.78 18.46 13,786
For the period March 7, 1996*
through December 31, 1996 8.50 0.06 0.72 0.78 (0.06) (0.06) (0.12) 9.16 8.54 4,459
INSTITUTIONAL SHARES
For the six months ended
June 30, 2000# 10.01 0.36 (0.16) 0.20 0.00 0.00 0.00 10.21 2.00 1,117
For the year ended
December 31, 1999 10.54 0.31 (0.06) 0.25 (0.35) (0.43) (0.78) 10.01 2.40 18,207
For the year ended
December 31, 1998 9.82 0.34 0.90 1.24 (0.30) (0.22) (0.52) 10.54 12.68 16,108
For the year ended
December 31, 1997 9.21 0.17 1.55 1.72 (0.24) (0.87) (1.11) 9.82 18.69 1,823
For the period April 2, 1996*
through December 31, 1996 8.51 0.00 0.70 0.70 0.00 0.00 0.00 9.21 8.23 304
</TABLE>
<TABLE>
<CAPTION>
RATIOS
RATIO INFORMATION
ASSUMING NO FEE WAIVERS,
REIMBURSEMENTS OR
CUSTODY FEE
RATIO OF EARNINGS CREDIT RECEIVED
RATIO OF NET ------------------------
EXPENSES INCOME TO RATIO OF RATIO OF
TO AVERAGE AVERAGE PORTFOLIO EXPENSES NET INCOME
NET NET TURNOVER TO AVERAGE TO AVERAGE
ASSETS ASSETS RATE NET ASSETS NET ASSETS
------ ------ ---- ---------- ----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM RETIREMENT
ADVISER SHARES
For the six months ended
June 30, 2000# 1.75+ 3.03+ 173.49+ 2.32+ 2.46+
For the year ended
December 31, 1999 1.75 2.87 286.76 1.92 2.70
For the year ended
December 31, 1998 1.75 3.00 263.77 1.96 2.79
For the year ended
December 31, 1997 1.75 2.41 145.44 2.65 1.51
For the period March 7, 1996*
through December 31, 1996 1.75+ 2.08+ 14.16 15.68+ -11.85+
INSTITUTIONAL SHARES
For the six months ended
June 30, 2000# 1.46+ 3.32+ 173.49+ 1.82+ 2.96+
For the year ended
December 31, 1999 1.46 3.18 286.76 1.62 3.02
For the year ended
December 31, 1998 1.45 3.31 263.77 1.64 3.12
For the year ended
December 31, 1997 1.44 2.87 145.44 4.01 0.30
For the period April 2, 1996*
through December 31, 1996 1.50+ 2.31+ 14.16 19.10+ -15.29+
<FN>
+ Annualized
* Commencement of operations.
# Unaudited.
</FN>
</TABLE>
Page 23
<PAGE>
TomorrowFunds
------------------
R E T I R E M E N T T R U S T
A Lifecycle Retirement Program
----------------------------------------
ONE NEW YORK PLAZA, NEW YORK, NY 10004
(800) 223-3332
INDEPENDENT TRUSTEES AND MEMBERS
OF AUDIT COMMITTEE
Raymond R. Herrmann, Jr.
Lawrence J. Israel
Graham E. Jones
OFFICERS
ROGER J. WEISS
Chairman of the Board, President and Trustee
RONALD M. HOFFNER
Executive Vice President and Treasurer
JOSEPH J. REARDON
Vice President and Secretary
DANIEL CARDELL
Vice President
DANIEL S. VANDIVORT
Vice President
STEVEN M. PIRES
Assistant Vice President
INVESTMENT ADVISER
Weiss, Peck & Greer, L.L.C.
One New York Plaza
New York, NY 10004
CUSTODIAN
Boston Safe Deposit and Trust Company
One Exchange Place
Boston, MA 02109
DIVIDEND DISBURSING AND
TRANSFER AGENT
PFPC Inc.
P.O. Box 60448
King of Prussia, PA 19406-0448
LEGAL COUNSEL
Hale and Dorr
60 State Street
Boston, MA 02109
INDEPENDENT AUDITORS
KPMG LLP
345 Park Avenue
New York, NY 10154
This report is submitted for the general information of shareholders and is not
authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus. Nothing herein is to be considered an
offer of sale or solicitation of an offer to buy shares of the Tomorrow Funds
Retirement Trust. Such offering is made only by prospectus, which includes
details as to offering and other material information.
