<PAGE>
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1999
SEMIANNUAL REPORT
April 30, 1999
(Unaudited)
Waterhouse
Dow 30
Fund
........................
Waterhouse Logo
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WATERHOUSE INVESTORS FAMILY OF FUNDS, INC.
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS
DIRECTORS
GEORGE F. STAUDTER
Director of Koger Equity, Inc.
Independent Financial Consultant
RICHARD W. DALRYMPLE
President of Teamwork Mgmt., Inc.
CAROLYN B. LEWIS
President of
The CBL Group
LAWRENCE J. TOAL
Chairman/President/CEO of
Dime Bancorp, Inc.
EXECUTIVE OFFICERS
GEORGE A. RIO*
President, Treasurer
and Chief Financial Officer
CHRISTOPHER J. KELLEY*
Vice President and Secretary
*Affiliated person of the Distributor
WATERHOUSE ASSET MANAGEMENT, INC.
BOARD OF DIRECTORS AND SENIOR OFFICERS
DIRECTORS
LAWRENCE M. WATERHOUSE, JR.
Chairman
Waterhouse Investor Services, Inc.
FRANK J. PETRILLI
President and Chief Executive Officer
Waterhouse Investor Services, Inc.
RICHARD H. NEIMAN
Executive Vice President,
General Counsel and Secretary
Waterhouse Investor Services, Inc.
SENIOR OFFICERS
DAVID A. HARTMAN
Senior Vice President
Chief Investment Officer
B. KEVIN STERNS
Executive Vice President
Chief Financial Officer & Treasurer
MICHELE R. TEICHNER
Senior Vice President
Operations & Compliance
SERVICE PROVIDERS
<TABLE>
<S> <C> <C>
INVESTMENT MANAGER TRANSFER AGENT INDEPENDENT AUDITORS
Waterhouse Asset Management, Inc. National Investor Services Corp. Ernst & Young LLP
100 Wall Street 55 Water Street 787 Seventh Avenue
New York, New York 10005 New York, NY 10041 New York, NY 10019
ADMINISTRATOR & CUSTODIAN LEGAL COUNSEL
SHAREHOLDER SERVICING The Bank of New York Swidler Berlin
Waterhouse Securities, Inc. 90 Washington Street Shereff Friedman, LLP
100 Wall Street New York, NY 10286 919 Third Avenue
New York, NY 10005 New York, NY 10022
Customer Service Department DISTRIBUTOR
(800) 934-4410 Funds Distributor, Inc.
60 State Street
Boston, MA 02109
</TABLE>
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2
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WATERHOUSE DOW 30 FUND
DEAR SHAREHOLDER:
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We are pleased to provide you with the semiannual report for the Waterhouse Dow
30 Fund (the "Fund") for the six months ended April 30, 1999. During this
period, the Dow Jones Industrial AverageSM ("DJIA"SM) performed quite strongly,
rising from 8,592 on October 31, 1998 to 10,789 on April 30,1999. In the
interim, the DJIA roared through the 10,000 level, closing above this milestone
for the first time on March 29, 1999. On a total return basis, which includes
reinvested dividends, the period return for the DJIA was +26.6%. Your Fund had a
total return for the same period of +26.5%, after expenses. Since the investment
objective of the Fund is to match the performance of the DJIA before Fund
expenses, we are pleased with these results. As with any investment, past
performance is no guarantee of future performance and there is no guarantee that
the Fund's investment objective will be achieved in the future. We will continue
to work diligently to achieve the objective of the Fund and to provide to our
shareholders an investment vehicle designed to closely emulate the performance
of the DJIA.
[GRAPHIC]
In the printed version of the document, a line graph appears which depicts
the following plot points:
10/31/98 11/30/98 12/31/98 1/31/99 2/28/99 3/31/99 4/30/99
Dow 30 Fund $10,000. $10,629. $10,723. $10,936. $10,902. $11,477. $12,652.
DJIA Index $10,000. $10,637. $10,727. $10,939. $10,905. $11,483. $12,664.
Note: As with all investments, past performance is no guarantee of future
results. The return is based on a constant investment throughout the
period, includes reinvestment of dividends and reflects a net return to
the shareholders after all expenses, inclusive of fee waivers. Without
this waiver, the Fund's total return would have been lower. It is not
possible to invest in an index.
Performance data quoted represents past performance. The 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.
The price performance of each of the DJIA stocks during the period of October
31, 1998 through April 30, 1999 is shown in the chart below. Partially
reflective of the strong share price performances, Merck & Co., Aluminum Co. of
America, McDonald's, AT&T Corp., and Wal-Mart Stores each executed stock splits
during this period.
<TABLE>
<CAPTION>
Price Price
Appreciation* DJIA Component Appreciation* DJIA Component
- ------------- -------------- ------------- --------------
<S> <C> <C> <C>
59.9% Citigroup 21.7% AT&T Corp.
57.1% Aluminum Co. of America 20.6% General Electric
51.9% United Technologies 19.6% Johnson & Johnson
50.9% AlliedSignal 17.9% Disney (Walt)
47.9% American Express 16.6% Exxon Corp.
43.1% Caterpillar 14.8% International Paper
43.0% J.P. Morgan 11.3% Minnesota Mining & Mfg.
41.0% General Motors 8.3% Boeing Co.
40.9% IBM 6.2% Goodyear Tire
34.7% Union Carbide 5.6% Procter & Gamble
33.3% Wal-Mart Stores 3.9% Merck & Co.
31.1% Hewlett-Packard 2.4% Sears
26.7% McDonalds 0.6% Coca-Cola
22.8% DuPont (E.I.) -3.7% Eastman Kodak
22.4% Chevron -31.4% Philip Morris Cos.
</TABLE>
Note: *Percentages reflect each stock's price appreciation only. They do not
include reinvested dividends. The stocks are listed from the best
performer to the worst over the most recent six month period. Performance
quoted represents past performance and is not a guarantee of future
results.
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3
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The U.S. stock market's robust performance over the most recent six month period
was especially rewarding to equity market participants as it followed a period
of uncertainty and volatility that had existed throughout the third quarter of
1998. The market's health reflected the continued strength of the U.S. economy,
as GDP posted growth of 6.0% in the fourth quarter of 1998 and 4.5% in the first
quarter of 1999. Inflation remains in check and has hovered around 1.6% for the
past several months.
Looking forward to the next six months, the market's direction will likely be
primarily affected by interest rates, inflationary trends, corporate profits and
money investment flows. Additionally, although events in Asia, Latin America and
other emerging markets seem to have settled, another round of disruptions from
these areas cannot be ruled out. In light of today's economic and market
environments, the quality and underlying financial strength of the companies
comprising the DJIA are expected to provide a solid investment foundation for
our shareholders' investments in the Fund.
We welcome additional investments into the Fund, and provide a number of
attractive ways to invest or add to current positions. The minimum initial
investment is $1,000 and $100 for subsequent purchases. For Waterhouse
Securities customers there is no minimum or subsequent investment requirements.
A periodic investment plan is also available which requires a minimum investment
of $100 monthly or $300 quarterly. Keep in mind, however, that periodic
investing neither guarantees a profit nor protects against a loss in a declining
market. You may contact Waterhouse Securities' mutual funds service department
at 800-457-6516 or your local branch office for more information.
Sincerely,
/s/ Lawrence M. Waterhouse, Jr.
---------------------------
Lawrence M. Waterhouse, Jr.
Chairman
Waterhouse Investors Services, Inc.
June 2, 1999
An investment in the Fund is neither FDIC-insured nor guaranteed by the U.S.
Government and is not a deposit or obligation guaranteed by any bank and is
subject to investment risk, including possible loss of the principal amount
invested.
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4
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---------------------------------------
TABLE OF CONTENTS
---------------------------------------
Schedule of Investments............................... 6
Statement of Assets and Liabilities................... 7
Statement of Operations............................... 8
Statements of Changes in Net Assets................... 9
Financial Highlights..................................10
Notes to Financial Statements.........................11
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5
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WATERHOUSE DOW 30 FUND
SCHEDULE OF INVESTMENTS
April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
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<S> <C> <C>
COMMON STOCKS
AlliedSignal Inc. 50,610 $ 2,973,337
Alcoa Inc. 50,610 3,150,472
American Express Co. 50,610 6,614,094
AT&T Corp. 50,610 2,555,805
The Boeing Co. 50,610 2,056,031
Caterpillar Inc. 50,610 3,258,019
Chevron Corp. 50,610 5,048,347
Citigroup Inc. 50,610 3,808,403
The Coca-Cola Co. 50,610 3,441,480
E.I. du Pont de Nemours and Co. 50,610 3,574,331
Eastman Kodak Co. 50,610 3,776,771
Exxon Corp. 50,610 4,203,793
General Electric Co. 50,610 5,339,355
General Motors Corp. 50,610 4,501,127
The Goodyear Tire & Rubber Co. 50,610 2,894,259
Hewlett-Packard Co. 50,610 3,991,864
International Business Machines Corp. 50,610 10,586,979
International Paper Co. 50,610 2,698,146
J.P. Morgan & Co., Inc. 50,610 6,819,698
Johnson & Johnson 50,610 4,934,475
McDonald's Corp. 50,610 2,144,599
Merck & Co., Inc. 50,610 3,555,353
Minnesota Mining & Manufacturing Co. 50,610 4,504,290
Philip Morris Cos. Inc. 50,610 1,774,513
The Procter & Gamble Co. 50,610 4,747,851
Sears, Roebuck and Co. 50,610 2,328,060
Union Carbide Corp. 50,610 2,625,394
United Technologies Corp. 50,610 7,332,124
Wal-Mart Stores, Inc. 50,610 2,328,060
The Walt Disney Co. 50,610 1,606,868
------------
TOTAL COMMON STOCKS (COST $99,645,169)--100.0% 119,173,898
------------
OTHER (COST $376,449)--0.1%
DiamondsSM Trust, Series 1 4,350 469,528
------------
REPURCHASE AGREEMENTS--0.9%
Salomon Smith Barney, Inc. (Par Value & Cost $1,124,000)
*dated 4/30/99, due 5/3/99, in the amount of $1,124,461
*fully collateralized by $1,140,208 U.S. Government
securities, value $1,146,481 1,124,000
------------
TOTAL INVESTMENTS (COST $101,145,618)--101.0% 120,767,426
OTHER ASSETS AND LIABILITIES, NET--(1.0%) (1,184,857)
------------
NET ASSETS--100.0% $119,582,569
============
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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6
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WATERHOUSE DOW 30 FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (cost $101,145,619) $120,767,426
Cash 783
Dividends receivable 64,252
Receivable for capital shares sold 995,301
Receivable for investment securities sold 15,047
Due from adviser 45,010
Other assets 880
------------
TOTAL ASSETS 121,888,699
LIABILITIES
Payable for investment securities purchased 2,116,146
Payable for capital shares redeemed 118,864
Other accrued expenses 71,120
------------
TOTAL LIABILITIES 2,306,130
------------
NET ASSETS $119,582,569
============
Net assets consist of:
Paid-in capital $ 99,121,708
Accumulated net investment loss (661)
Accumulated net realized gains from security transactions 839,715
Net unrealized appreciation on investments 19,621,807
------------
Net assets, at value $119,582,569
============
Shares outstanding ($.0001 par value common stock, 10
billion shares authorized) 11,084,254
============
Net asset value, redemption price and offering price per
share (Note 2) $ 10.79
============
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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7
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WATERHOUSE DOW 30 FUND
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividend income $ 699,918
Interest income 11,061
------------
Total Investment Income 710,979
------------
EXPENSES
Shareholder servicing fees (Note 3) 106,925
Investment management fees (Note 3) 85,540
Transfer agent fees (Note 3) 21,386
Shareholder reports and mailing 50,000
Professional fees 31,778
Registration fees 25,852
Custody fees (Note 2) 6,819
Directors' fees and expenses 2,813
Other expenses 17,392
------------
TOTAL EXPENSES 348,505
Fees waived/expenses reimbursed by the
Investment Manager and its affiliates (Note 3) (241,593)
------------
NET EXPENSES 106,912
------------
NET INVESTMENT INCOME 604,067
------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 907,873
Net change in unrealized appreciation/depreciation on
investments 19,787,524
------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 20,695,397
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 21,299,464
============
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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8
<PAGE>
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WATERHOUSE DOW 30 FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998*
-------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 604,067 $ 247,604
Net realized gains (losses) from security
transactions 907,873 (68,158)
Net change in unrealized appreciation/depreciation
on investments 19,787,524 (165,717)
-------------- ------------
Net increase in net assets from operations 21,299,464 13,729
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (603,989) (247,604)
In excess of net investment income -- (739)
-------------- ------------
Total distributions to shareholders (603,989) (248,343)
-------------- ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 65,430,366 70,986,821
Shares issued in reinvestment of dividends 603,989 248,343
Payments for shares redeemed (29,358,315) (8,789,496)
-------------- ------------
Net increase in net assets from capital share
transactions 36,676,040 62,445,668
-------------- ------------
TOTAL INCREASE IN NET ASSETS 57,371,515 62,211,054
NET ASSETS:
Beginning of period 62,211,054 --
-------------- ------------
End of period $ 119,582,569 $ 62,211,054
============== ============
CAPITAL STOCK TRANSACTIONS:
Shares sold 6,857,192 8,264,395
Shares issued for dividends reinvested 63,680 30,046
Shares redeemed 3,078,758 (1,052,301)
-------------- ------------
Net increase in shares outstanding 3,842,114 7,242,140
Shares outstanding, beginning of the period 7,242,140 --
-------------- ------------
Shares outstanding, end of the period 11,084,254 7,242,140
============== ============
<FN>
*The Fund commenced operations on March 31, 1998.
</FN>
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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9
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WATERHOUSE DOW 30 FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for the period indicated. This information has been
derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998*
-------------- ------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 8.59 $ 8.78
-------------- ------------
INVESTMENT OPERATIONS
Net investment income 0.07 0.08
Net realized and unrealized gains (losses) on
investments 2.20 (0.19)
-------------- ------------
TOTAL FROM INVESTMENT OPERATIONS 2.27 (0.11)
Distributions from net investment income (0.07) (0.08)
-------------- ------------
Net asset value, end of period $ 10.79 $ 8.59
============== ============
RATIOS
Ratio of net expenses to average net assets 0.25%(A) 0.25%(A)
Ratio of net investment income to average net assets 1.41%(A) 1.48%(A)
Decrease reflected in above expense ratio due to
waivers/reimbursements by the Investment Manager
and its affiliates (Note 3) 0.56%(A) 0.55%(A)
SUPPLEMENTAL DATA
Portfolio turnover rate 27%(A) 8%(A)
Total investment return 26.52%(B) (1.19%)(B)
Net assets, end of period $ 119,582,569 $ 62,211,054
============== ============
Average net assets $ 86,561,468 $ 28,460,853
============== ============
<FN>
* The Fund commenced operations on March 31, 1998.
(A) Annualized.
(B) Total investment return is calculated assuming a purchase of
shares on the first day and a sale on the last day of the
period reported and includes reinvestment of dividends.
</FN>
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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10
<PAGE>
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WATERHOUSE DOW 30 FUND
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 1999 (UNAUDITED)
NOTE 1 -- ORGANIZATION
Waterhouse Investors Family of Funds, Inc. (the "Company") was organized as a
Maryland corporation on August 16, 1995. On December 18, 1997, Waterhouse
Investors Cash Management Fund, Inc. changed its name to Waterhouse Investors
Family of Funds, Inc. The Company is registered as an open-end management
investment company with the Securities and Exchange Commission under the
Investment Company Act of 1940, as amended (the "Act"). Shares of the Company
are registered under the Securities Act of 1933, as amended. The Company
currently has four investment portfolios: the Waterhouse Dow 30 Fund (the
"Fund") (formerly named "Waterhouse Investors Dow Jones Industrial AverageSM
Index Fund"), the Money Market Portfolio, the U.S. Government Portfolio and the
Municipal Portfolio (collectively, the "Portfolios"). The assets of each
Portfolio are segregated and accounted for separately. The investment objective
of the Fund is to seek to track the total return of the Dow Jones Industrial
AverageSM before Fund expenses. The Fund commenced operations on March 31, 1998.
These financial statements relate to the Fund, a non-diversified portfolio.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Fund's significant accounting policies:
Share Valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The offering price and redemption price per share
are equal to the net asset value per share.
Securities Valuation -- The Fund's portfolio securities are valued as of the
close of business of the regular session of the New York Stock Exchange
(normally 4:00 p.m., Eastern Time). Securities that are traded over-the-counter
are valued at the last sales price, if available, otherwise, at the last quoted
bid price. Securities traded on a national stock exchange are valued based upon
the closing price on the principal exchange where the security is traded.
Repurchase Agreements -- The Fund may enter into repurchase agreements with
financial institutions deemed to be creditworthy by the Fund's Investment
Manager, subject to the seller's agreement to repurchase and the Fund's
agreement to resell such securities at a mutually agreed upon price. Securities
purchased subject to repurchase agreements are deposited with the Fund's
custodian and, pursuant to the terms of the repurchase agreement, 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.
Investment Income -- Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date. Under the terms of the custody agreement, the
Fund receives net earnings credits based on available cash balances left on
deposit. Income earned under this arrangement is included in interest income.
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11
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WATERHOUSE DOW 30 FUND
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 1999 (UNAUDITED)
(CONTINUED)
Distributions to Shareholders -- Dividends arising from net investment income,
if any, are declared daily and paid monthly. Net realized short-term capital
gains, if any, may be distributed during the year and net realized long-term
capital gains, if any, are distributed at least once each year. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations.
Securities Transactions -- Securities transactions are accounted for on the
trade date. Realized gain and loss from securities transactions are recorded on
a specific identification basis.
Expenses -- Expenses directly attributable to the Fund are charged to the Fund's
operations. Expenses which are applicable to the Fund and the other Portfolios
of the Company are allocated on a pro rata basis.
Use of Estimates -- The Fund's financial statements are prepared in accordance
with generally accepted accounting principles, which may require the use of
management estimates and assumptions. Actual results could differ from these
estimates.
Federal Income Taxes -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which the Fund so
qualifies, and distributes at least 90% of its taxable net income, the Fund (not
the shareholders) will be relieved of federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
NOTE 3 -- INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS
WITH AFFILIATES OF THE INVESTMENT MANAGER
Under the terms of an Investment Management Agreement with Waterhouse Asset
Management, Inc. (the "Investment Manager"), an indirect wholly owned subsidiary
of The Toronto-Dominion Bank, for the investment management services furnished
to the Fund, the Fund pays the Investment Manager an annual investment
management fee, equal to .20 of 1% of the average daily net assets of the Fund.
The Investment Manager currently anticipates that it will limit the Fund's
overall expense ratio to no more than 0.25%. For the six months ended April 30,
1999, the Investment Manager voluntarily waived its entire investment management
fee of $85,540 and reimbursed the Fund $65,535 for other operating expenses.
Waterhouse Securities, Inc. ("Waterhouse Securities"), an affiliate of the
Investment Manager, has been retained under an Administration Agreement to
perform certain administrative services for the Fund. For the administrative
services rendered to the Fund, the Investment Manager (not the Fund) pays
Waterhouse Securities a monthly fee at an annual rate of .10 of 1% of the Fund's
average daily net assets.
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12
<PAGE>
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WATERHOUSE DOW 30 FUND
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 1999 (UNAUDITED)
(CONTINUED)
Waterhouse Securities has been retained under a Shareholder Services Agreement
to perform certain shareholder services necessary for the operation of the Fund.
The shareholder service plan adopted by the Fund provides that the Fund pay
Waterhouse Securities a monthly fee at an annual rate of up to .25 of 1% of
average daily net assets. For the six months ended April 30, 1999, Waterhouse
Securities voluntarily waived $70,978 of its shareholder servicing fee for the
Fund.
The Fund has entered into a Transfer Agency and Dividend Disbursing Agency
Agreement with National Investor Services Corp. (the "Transfer Agent"), an
affiliate of the Investment Manager, to perform transfer and dividend disbursing
agency related services. For such services, the Fund pays the Transfer Agent a
monthly fee at an annual rate of .05 of 1% of average daily net assets. For the
six months ended April 30, 1999, the Transfer Agent voluntarily waived $19,540
of its transfer agent fee for the Fund.
Each Director who is not an "interested person" ("independent Director") as
defined in the Act, who serves on the Board of Directors of one or more
portfolios in the "Fund Complex" (which includes the Company and National
Investors Cash Management Fund, Inc.), receives:
1. a base annual retainer of $12,000, payable quarterly.
2. a supplemental annual retainer of $5,000, if serving on the Board of
Directors of more than one company in the Fund Complex, and
3. a meeting fee of $2,000 for each meeting attended.
Compensation is allocated between the companies and among the respective
portfolios.
The Fund placed all of its portfolio transactions with Waterhouse Securities.
There were no commissions paid to Waterhouse Securities for the period.
NOTE 4 -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investment securities, other
than short-term investments, amounted to $48,186,907 and $11,461,974
respectively, for the six months ended April 30, 1999.
At April 30, 1999, net unrealized appreciation for Federal income tax purposes
aggregated $19,621,807, consisting of $21,291,827 gross unrealized appreciation
and $1,670,020 gross unrealized depreciation.
This Report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.
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13
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Waterhouse Logo
WHERE INVESTORS WHO EXPECT VALUE FEEL RIGHT AT HOME
Over 160 Branches Nationwide
National Headquarters: 100 Wall Street, New York, NY
Member NYSE * SIPC Waterhouse Securities is a subsidiary of
The Toronto-Dominion Bank whose stock is listed on the NYSE (symbol: TD).
- -------------------------------------------------------------------------------
