<PAGE> 1
HOLLAND BALANCED FUND
Annual Report
September 30, 2000
[GRAPHIC OF SHAKING HANDS]
<PAGE> 2
------------------------------------------------
<TABLE>
<S> <C>
CONTENTS
Letter from the President.................... 1
Cumulative Performance....................... 2
Management Discussion of Fund Performance and
Notes to Performance....................... 3
Statement of Net Assets...................... 4
Statement of Operations...................... 7
Statements of Changes in Net Assets.......... 8
Financial Highlights......................... 9
Notes to Financial Statements................ 10
Report of Independent Accountants............ 14
General Information.......................... 15
</TABLE>
<PAGE> 3
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - LETTER FROM THE PRESIDENT
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
[PHOTOGRAPH]
Dear Fellow Shareholder:
I am pleased to report that our
Fund has achieved a return of
14.6%, versus 11.1% for the Lipper
Balanced Fund Index for the twelve
months ended September 30, 2000.
The Fund's aggregate total return
since inception (October 2, 1995
through September 30, 2000) has been 89.8%, versus 82.2% for the Lipper Balanced
Fund Index.
During this volatile twelve-month time frame, our Fund has produced a
satisfactory return with relatively low volatility.
Additionally, our Fund's portfolio turnover has been predictably modest,
resulting in a favorable capital gains tax distribution experience.
Thank you for your continuing support. Please visit our website at
www.thehollandfund.com.
With Bullish Regards,
/s/ Michael F. Holland
Michael F. Holland
President and Founder
1
<PAGE> 4
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - CUMULATIVE PERFORMANCE
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
Set forth below are the cumulative total return figures for the periods
indicated and a graph showing the hypothetical $10,000 investment made in the
Holland Balanced Fund, Standard & Poor's 500 Index, Salomon 10 Year Government
Bond Index, 90 Day US Treasury Bill Rate and the Lipper Balanced Fund Index on
October 2, 1995. The cumulative and annualized total return figures and the
information in the graph represent past performance and are not indicative of
future results. The total returns reflect changes in price of the Fund's shares
and assume that any income dividends and/or capital gain distributions made by
the Fund during the period were reinvested in additional shares of the Fund.
Investment return and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
<TABLE>
<CAPTION>
SALOMON 10 YEAR 90 DAY US
HOLLAND BALANCED LIPPER BALANCED STANDARD & POOR'S GOVERNMENT TREASURY BILL
FUND(a) FUND INDEX(b) 500 INDEX(b) BOND INDEX(b) RATE(b)
---------------- --------------- ----------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
Inception 10000 10000 10000 10000 10000
3/96 10993 10675 11045 10110 10259
9/96 11566 11040 11761 10252 10522
3/97 12582 11703 12955 10412 10790
9/97 14192 13758 16209 11618 11067
3/98 14772 15037 18852 12562 11351
9/98 14537 14442 17402 14153 11628
3/99 16417 16363 22011 13431 11887
9/99 16554 16390 21949 13060 12167
3/00 19373 18076 25643 13757 12500
9/00 18976 18215 24580 14310 12874
</TABLE>
INVESTMENT PERFORMANCE
For the Periods Ended September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN Average 12 Months
Cumulative Since Annualized Since Ended
Inception (10/2/95) Inception (10/2/95) 9/30/00
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOLLAND BALANCED FUND(a) 89.76% 13.68% 14.63%
Lipper Balanced Fund
Index(b) 82.15% 12.78% 11.13%
Standard & Poor's 500
Index(b) 145.80% 19.77% 11.99%
Salomon 10 Year Government
Bond Index(b) 43.10% 7.45% 9.57%
90 Day US Treasury Bill
Rate(b) 28.74% 5.20% 5.81%
</TABLE>
2
<PAGE> 5
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - MANAGEMENT DISCUSSION OF FUND PERFORMANCE
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
Since inception (October 2, 1995 through September 30, 2000), our Fund's total
return has been 89.8% compared to 82.2% for the Lipper Balanced Fund Index. The
past year has seen a continued confluence of low inflation, good economic growth
and good corporate profitability which we expect to continue for some time. This
environment has favored our Fund's "blue chip" equity investments.
Our Fund's long-term approach is characterized by minimal trading: This has the
effect of minimizing capital gains tax distributions, a growing mutual fund
industry objective.
--------------------------------------------------------------------------------
NOTES TO PERFORMANCE
--------------------------------------------------------------------------------
(a) Reflects waiver of fees and reimbursement of expenses by investment adviser.
Absent such waiver and reimbursement, the Fund's total return would have
been lower.
(b) The Lipper Balanced Fund Index is an index whose primary objective is to
conserve principal by maintaining at all times a balanced portfolio of both
stocks and bonds. Typically, the stock/bond ratio ranges around 60%/40%. The
Standard & Poor's 500 Index is a capitalization-weighted index of 500 widely
held stocks recognized by investors to be representative of the stock market
in general. The Salomon 10 Year Government Bond Index is a subsector of the
Broad Investment-Grade (BIG) Index. At present, this sector contains U.S.
Treasury securities with at least $1 billion public amount outstanding and
U.S. Agency and supranational issues with at least $100 million outstanding.
All securities in this index have a remaining maturity of at least 10 years
and carry a fixed rate coupon. The 90-Day T-Bill Rate is the average return
on three month U.S. Treasury Bills. These indices are unmanaged and do not
reflect the actual cost of investing in the instruments that comprise each
index.
3
<PAGE> 6
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 2000 Shares Value(+)
----------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-59.3%
BANKS-5.6%
Chase Manhattan Corp. 39,600 $ 1,829,025
J.P. Morgan & Co., Inc. 12,200 1,993,175
-----------
3,822,200
-----------
COMPUTERS-3.6%
International Business Machines Corp. 21,800 2,452,500
-----------
ELECTRONICS-14.7%
Agilent Technologies, Inc.* 27,170 1,329,632
Hewlett-Packard Co. 28,800 2,793,600
Intel Corp. 69,800 2,896,700
Oracle Corp.* 38,000 2,992,500
-----------
10,012,432
-----------
FOOD & BEVERAGES-2.9%
Coca Cola Co. 35,900 1,978,987
-----------
FINANCIAL-4.3%
Merrill Lynch & Co. 44,600 2,943,600
-----------
OIL/GAS-6.4%
Exxon Mobil Corp. 26,300 2,343,988
Schlumberger, Ltd. 24,500 2,016,656
-----------
4,360,644
-----------
PHARMACEUTICALS-7.9%
Johnson & Johnson 28,500 2,677,219
Merck & Co., Inc. 36,200 2,694,637
-----------
5,371,856
-----------
PRODUCER GOODS-6.1%
General Electric Co. 38,100 2,197,894
Minnesota Mining & Manufacturing Co. 21,600 1,968,300
-----------
4,166,194
-----------
RETAIL TRADE-3.4%
Wal-Mart Stores, Inc. 49,000 2,358,125
-----------
SOFTWARE-4.4%
Microsoft Corp.* 50,500 3,045,781
-----------
Total Common Stocks (Cost-$28,853,532) 40,512,319
-----------
</TABLE>
--------------------------------------------------------------------------------
See Notes to the Financial Statements
4
<PAGE> 7
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - STATEMENT OF NET ASSETS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 2000 Principal Value(+)
----------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES-31.2%
United States Treasury Bond, 6.250%
due 8/15/23 $1,500,000 $ 1,527,657
United States Treasury Note, 5.625%
due 11/30/00 1,000,000 998,438
United States Treasury Note, 5.625%
due 2/28/01 1,000,000 997,188
United States Treasury Note, 6.250%
due 2/28/02 2,000,000 2,003,126
United States Treasury Note, 6.000%
due 7/31/02 3,000,000 2,998,125
United States Treasury Note, 6.375%
due 8/15/02 1,000,000 1,005,938
United States Treasury Note, 5.375%
due 6/30/03 2,500,000 2,464,063
United States Treasury Note, 5.250%
due 8/15/03 2,800,000 2,747,500
United States Treasury Note, 5.875%
due 2/15/04 3,500,000 3,494,533
United States Treasury Note, 6.500%
due 5/15/05 3,000,000 3,075,000
-----------
Total U.S. Government Securities
(Cost-$21,201,281) 21,311,568
-----------
REPURCHASE AGREEMENTS-14.0%
State Street Bank and Trust Co. Repurchase
Agreement, 5.250% due 10/2/00 in the
amount of $9,551,177; issued 9/29/00
(Collateralized by $9,565,000, FNMA,
6.600% due 6/7/02 with a market value
of $9,739,485) (Cost-$9,547,000) 9,547,000 9,547,000
-----------
Total Investments-104.5%
(Cost-$59,601,813) 71,370,887
-----------
LIABILITIES IN EXCESS OF OTHER
ASSETS-(4.5%) (3,073,331)
-----------
NET ASSETS-100%
Applicable to 3,972,787 outstanding $0.01
par value shares (authorized
1,000,000,000) $68,297,556
===========
Net asset value, offering price and
redemption price per share $ 17.19
===========
</TABLE>
5
<PAGE> 8
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - STATEMENT OF NET ASSETS (concluded)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 2000
---------------------------------------------------------------------
<S> <C>
COMPONENTS OF NET ASSETS AS OF SEPTEMBER 30, 2000
Capital stock at par value ($0.01) $ 39,728
Capital stock in excess of par value 56,048,484
Undistributed net investment income 228,187
Accumulated net realized gain on investments 212,083
Net unrealized appreciation on investments 11,769,074
-----------
Net Assets $68,297,556
===========
</TABLE>
--------------------------------------------------------------------------------
See Notes to the Financial Statements
+See Note 2 to the Financial Statements
FNMA Federal National Mortgage Association
*Non-income producing
6
<PAGE> 9
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended September 30, 2000
---------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest $ 1,262,943
Dividends 357,624
-----------
Total investment income 1,620,567
-----------
EXPENSES
Investment advisory fees (Note 3) 410,424
Administration and custody fees (Note 4) 113,393
Shareholder account maintenance 82,984
Legal fees 57,055
Shareholder reports 36,681
Amortization of organizational costs 33,731
Audit fees 29,137
Directors fees 27,890
Registration fees 27,024
Insurance expense 26,662
Miscellaneous expense 8,708
-----------
Total operating expenses 853,689
Waiver of investment advisory fees (Note 2) (32,015)
-----------
Net expenses 821,674
-----------
Net investment income 798,893
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments 212,083
Net change in unrealized appreciation on investments 5,108,770
-----------
Net realized and unrealized gain on investments 5,320,853
-----------
Net increase in net assets resulting from
operations $ 6,119,746
===========
</TABLE>
--------------------------------------------------------------------------------
See Notes to the Financial Statements
7
<PAGE> 10
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Year Ended 9/30/00 9/30/99
----------------------------------------------------------------------
<S> <C> <C>
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS
Net investment income $ 798,893 $ 651,200
Net realized gain on investments 212,083 162,221
Net change in unrealized appreciation
on investments 5,108,770 3,459,093
----------- -----------
Net increase in net assets resulting from
operations 6,119,746 4,272,514
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net investment income (795,281) (710,954)
Net realized gain on investments (162,221) (180,379)
----------- -----------
Total dividends and distributions (957,502) (891,333)
----------- -----------
CAPITAL SHARE TRANSACTIONS, NET (NOTE 7) 17,791,540 11,921,132
----------- -----------
Total increase in net assets 22,953,784 15,302,313
NET ASSETS
Beginning of Period 45,343,772 30,041,459
----------- -----------
End of Period $68,297,556 $45,343,772
=========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME,
END OF PERIOD $ 228,187 $ 190,844
=========== ===========
</TABLE>
--------------------------------------------------------------------------------
See Notes to the Financial Statements
8
<PAGE> 11
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Year Ended Period
For a capital share outstanding ---------------------------------------- 10/2/95*
throughout the period 9/30/00 9/30/99 9/30/98 9/30/97 to 9/30/96
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of
period $ 15.27 $ 13.74 $ 13.70 $ 11.39 $ 10.00
------- ------- ------- ------- ----------
INCREASE/DECREASES FROM
INVESTMENT OPERATIONS
Net investment income 0.24 0.23 0.28 0.26 0.23
Net realized and unrealized
gain on investments 2.00 1.66 0.05 2.30 1.33
------- ------- ------- ------- ----------
Total from investment
operations 2.24 1.89 0.33 2.56 1.56
------- ------- ------- ------- ----------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM:
Net investment income (0.26) (0.28) (0.29) (0.25) (0.17)
Net realized gain on
investments (0.06) (0.08) -- (0.00)(#) --
------- ------- ------- ------- ----------
Total dividends and
distributions (0.32) (0.36) (0.29) (0.25) (0.17)
------- ------- ------- ------- ----------
Net asset value, end of period $ 17.19 $ 15.27 $ 13.74 $ 13.70 $ 11.39
======= ======= ======= ======= ==========
TOTAL RETURN(a) 14.63% 13.87% 2.43% 22.71% 15.65%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's) $68,298 $45,344 $30,041 $26,788 $ 7,606
Ratio of expenses to average
net assets after fee waivers
and reimbursement of other
expenses(b) 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of expenses to average
net assets before fee waivers
and reimbursement of other
expenses(b) 1.56% 1.62% 1.83% 2.55% 4.81%
Ratio of net investment income
to average net assets after
fee waivers and reimbursement
of other expenses(b) 1.46% 1.59% 2.05% 2.31% 2.36%
Ratio of net investment income
to average net assets before
fee waivers and reimbursement
of other expenses(b) 1.40% 1.47% 1.72% 0.31% 0.96%
Portfolio turnover 17.99% 15.76% 16.49% 5.07% 5.04%
</TABLE>
--------------------------------------------------------------------------------
See Notes to the Financial Statements
<TABLE>
<S> <C>
(a) Total return would have been lower had certain expenses not
been waived or reimbursed. Periods less than one year are
not annualized.
(b) Annualized for periods less than one year.
# Rounds to less than $0.01
* Commencement of Investment Operations
</TABLE>
9
<PAGE> 12
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
1. ORGANIZATION
The Holland Series Fund, Inc. (the "Company") was organized as a Maryland
corporation on June 26, 1995 and is registered under the Investment Company Act
of 1940, as amended, as an open-end, management investment company. The Company
currently has one portfolio, the Holland Balanced Fund (the "Fund").
Investment Objective
The Fund is designed to provide investors with a convenient and professionally
managed vehicle for seeking a high total investment return. Total investment
return is the aggregate of dividend and interest income and realized and
unrealized capital gains/losses on investments. The Fund seeks to achieve its
objective through a combined portfolio of equity and investment grade
fixed-income securities.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
Securities
Securities transactions are accounted for as of the trade date. Interest income
and expenses are recorded on an accrual basis. The Fund amortizes discount or
premium using the yield-to-maturity method on a daily basis, except for
securities having a maturity date of sixty days or less at the time of
acquisition which are amortized on a straight-line basis. Dividend income is
recorded on the ex-dividend date. The Fund uses the specific identification
method for determining gain or loss on sales of securities.
Income Tax
There is no provision for federal income or excise tax since the Fund continues
to qualify as a regulated investment company ("RIC") and intends to comply with
the requirements of Subchapter M of the Internal Revenue Code applicable to RICs
and to distribute substantially all of its taxable income and realized gains.
Valuation
Securities traded on an exchange are valued at their last sales price on that
exchange. Securities for which over-the-counter market quotations are available
are valued at the latest bid price. Debt securities purchased with sixty days or
less remaining to maturity are valued at amortized cost which approximates fair
value.
Expenses
Holland & Company L.L.C. (the "Investment Adviser") has agreed to voluntarily
waive its fee and to reimburse the Fund for expenses exceeding 1.50% of average
daily net assets. During the year ended September 30, 2000, the Investment
Adviser voluntarily waived $32,015 of advisory fees.
Dividends and Distributions to Shareholders
The Fund distributes dividends quarterly and capital gains annually.
Distributions from net short-term capital gains and net long-term capital gains,
if any, will typically be declared and paid in December, but the Fund may make
distributions
10
<PAGE> 13
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
on a more frequent basis to comply with the distribution requirements of the
Internal Revenue Code. To the extent that a net realized capital gain can be
reduced by a capital loss carryover, such gain will not be distributed.
Dividends and distributions to shareholders are recorded on the ex-date of the
dividend or the distribution. Distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from those amounts determined under generally
accepted accounting principles. These book/tax differences are either temporary
or permanent in nature. To the extent these differences are permanent in nature,
such amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions that exceed net investment income or net realized
capital gains for financial reporting purposes, but not for tax purposes, are
reported as dividends in excess of net investment income or distributions in
excess of net realized gains on investments. To the extent they exceed net
investment income or net realized gains for tax purposes, they are reported as
distributions of capital.
3. INVESTMENT ADVISORY AGREEMENT
The Company's Board of Directors has approved an investment advisory agreement
with the Investment Adviser. For its services as investment adviser, the Company
pays the Investment Adviser a monthly fee at an annual rate of 0.75% of the
Fund's average daily net assets. Currently, the Investment Adviser is
voluntarily waiving a portion of its fee. The Investment Adviser is controlled
by Michael F. Holland, its managing member and owner of 99% interest in the
Investment Adviser.
As of September 30, 2000, Michael F. Holland and affiliates owned 93,841 shares
(2% of the shares outstanding) of the Fund.
4. ACCOUNTING, CUSTODY AND
ADMINISTRATION AGREEMENTS
Pursuant to its Administration Agreement effective June 1, 1999, State Street
Bank and Trust Company ("State Street") provides, or arranges for the provision
of certain administrative and accounting services for the Company, including
maintaining the books and records of the Company, and preparing certain reports
and other documents required by federal and/or state laws and regulations. For
these services, the Company pays State Street a fee at the annual rate of 0.10%
of the Fund's average daily net assets up to $100 million, 0.08% of the next
$100 million, and 0.06% of those assets in excess of $200 million, subject to
certain minimum requirements, and reimbursement for out-of-pocket expenses
pursuant to the Administration Agreement. Pursuant to the Administration
Agreement, the Administrator will be paid a minimum fee of $5,000 per month for
the first year of services provided to the Company, and a minimum fee of $7,000
per month thereafter unless waived by the Administrator. State Street also
serves as the Fund's custodian and accounting agent. Fees paid for custody and
accounting services
11
<PAGE> 14
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
4. ACCOUNTING, CUSTODY AND
ADMINISTRATION AGREEMENTS (continued)
rendered by State Street are based upon assets of the Fund and on transactions
entered into by the Fund during the period and are included in the
administration and custody fees in the Statement of Operations.
5. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities, other than short-term investments,
for the year ended September 30, 2000 aggregated $27,606,334 and $8,852,837
respectively.
The components of net unrealized appreciation/(depreciation) of investments
based on federal tax cost at September 30, 2000 for the Fund were as follows:
<TABLE>
<CAPTION>
-----------------------------------------------------------------
Cost for Federal
Appreciation Depreciation Net Appreciation Tax Purposes
-----------------------------------------------------------------
<S> <C> <C> <C>
$12,621,041 $(851,967) $11,769,074 $59,601,813
</TABLE>
6. REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements under which a bank or securities
firm that is a primary or reporting dealer in U.S. Government securities agrees,
upon entering into a contract, to sell U.S. Government securities to the Fund
and repurchase such securities from the Fund at a mutually agreed upon price and
date. The Fund will engage in repurchase transactions with parties selected by
the Investment Adviser on the basis of such party's creditworthiness. The
collateral on repurchase agreements must have an aggregate market value greater
than or equal to the repurchase price plus accrued interest at all times. If the
value of the underlying securities falls below the value of the repurchase price
plus accrued interest, the Fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the Fund maintains
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller. However, in the event of default or
bankruptcy by the counterparty to the agreement, realization and/or retention of
the collateral may be subject to legal proceedings.
12
<PAGE> 15
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - NOTES TO FINANCIAL STATEMENTS (concluded)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
7. CAPITAL SHARE TRANSACTIONS
As of September 30, 2000, there were 1,000,000,000 shares of $.01 par value
capital stock authorized. Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
Year Ended Year Ended
9/30/00 9/30/99
-----------------------------------------------------------------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Sold............ 1,392,775 $ 24,407,590 1,162,789 $ 17,656,300
Shares Reinvested...... 51,071 861,000 55,096 830,190
---------- ------------ --------- ------------
1,443,846 25,268,590 1,217,885 18,486,490
Shares Redeemed........ (440,514) (7,477,050) (434,879) (6,565,358)
---------- ------------ --------- ------------
NET INCREASE........... 1,003,332 $ 17,791,540 783,006 $ 11,921,132
========== ============ ========= ============
-----------------------------------------------------------------------------
</TABLE>
8. SUBSEQUENT EVENT -- CHANGE IN TRANSFER AGENT
At the Company's May 2, 2000 board meeting, the Directors appointed ALPS Mutual
Fund Services, Inc. to act as the Fund's transfer agent effective October 1,
2000.
Prior to October 1, 2000, Unified Fund Advisors, Inc. provided transfer agency
services to the Fund.
13
<PAGE> 16
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
To the Board of Directors
and Shareholders of
Holland Balanced Fund
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Holland Balanced Fund (the "Fund") at September 30, 2000, the results of its
operations for the year then ended, the changes its net assets for each of the
two years in the period then ended and the financial highlights for each of the
periods presented, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 2000 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
November 2, 2000
14
<PAGE> 17
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
Holland Balanced Fund - GENERAL INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
TAX INFORMATION
The following tax information represents year-end disclosures of various
benefits passed through to shareholders.
The amount of long-term capital gain paid was $162,221.
Of the distributions made by the Fund, 42.5% represent the amount of
distribution which qualifies for the dividends received deduction available to
corporate shareholders.
The above figures may differ from those cited elsewhere in this report due to
differences in the calculations of income and capital gains for Securities and
Exchange Commission (book) purposes and Internal Revenue Service (tax) purposes.
15
<PAGE> 18
[This page is left blank intentionally]
<PAGE> 19
Holland Series Fund, Inc.
--------------------------------------------------------------------------------
BOARD OF DIRECTORS
Michael F. Holland*
Director and President
Chairman,
Holland & Company L.L.C.
Sheldon S. Gordon
Director
Chairman,
Union Bancaire Privee International
Holdings, Inc.
Herbert S. Winokur, Jr.
Director
Chairman and
Chief Executive Officer,
Capricorn Holdings, Inc.,
and
Managing General Partner,
Capricorn Investors, L.P.,
Capricorn Investors II, L.P.,
Capricorn Investors III, L.P.
Desmond G. FitzGerald
Director
Chairman,
North American Properties Group
Jeff C. Tarr
Director
Chairman,
Junction Advisors
ADVISER
Holland & Company L.L.C.
375 Park Avenue
New York, NY 10152
email [email protected]
website www.thehollandfund.com
FUND ADMINISTRATOR,
CUSTODIAN AND FUND
ACCOUNTING AGENT
State Street Bank and Trust Co.
225 Franklin Street
Boston, MA 02110
DISTRIBUTOR, TRANSFER
AGENT AND DIVIDEND
DISBURSING AGENT
ALPS Mutual Fund Services,
Member NASD
370 17th Street, Suite 3100
Denver, CO 80202
LEGAL COUNSEL
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, NY 10017
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
*interested person as defined in the Investment Company Act of 1940
<PAGE> 20
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Holland & Company L.L.C.
375 Park Avenue
New York, New York 10152
Phone 800-30-HOLLAND
Email [email protected]
Website www.thehollandfund.com
This report has been prepared for the
Holland Balanced Fund's Shareholders
and may be distributed to others only
if preceded or accompanied by a prospectus.
