N-30D 1 quant_sa.txt [LOGO OF QUANT FUNDS] QUANT FUNDS SEMI-ANNUAL REPORT SEPTEMBER 30, 2001 U.S. EQUITY FUNDS Quant Small Cap Fund Quant Mid Cap Fund Quant Growth and Income Fund INTERNATIONAL EQUITY FUNDS Quant International Equity Fund Quant Emerging Markets Fund Quant Foreign Value Fund -------------------------------------------------------------------------------- [LOGO] Q U A N T F U N D S November 19, 2001 Dear Fellow Shareholder: I am pleased to provide you with the Semi-Annual Report for the Quant Funds for the six-month period from April 1, 2001 through September 30, 2001. We believe that the domestic and international funds continue to offer a compelling solution to meeting your long-term financial goals even considering the significant market volatility that has occurred over the past six months. As the year comes to a close, we continue to believe that each of the funds' portfolios remain well positioned to take advantage of the market opportunities in the upcoming year as well as the remainder of the fiscal year. It has been difficult to predict investor sentiment over the past few weeks; however, using history as our guide, we know that reacting to a short-term event is seldom a prudent approach to attaining long-term investment goals. Just as our portfolio managers stick to a disciplined, consistent investment strategy regardless of short-term market conditions, we urge our shareholders and investment professionals to also stick with their long-term plans. Additionally, our managers will seek to make the most of the turbulent time in the economy to focus on good buying opportunities. Recently, the Trustees of the Quant Funds decided to close and liquidate the Quant International Equity Fund by November 30, 2001 as a result of the reduction in assets in the Fund. Shareholders of the Fund have the option to exchange into another Quant Fund or redeem their shares. One of the funds they may exchange into is the Quant Foreign Value Fund which was opened in May, 1998 as an international, value fund. The Quant Foreign Value Fund's objective is similar to the Quant International Equity Fund, but with a value focus that has proved positive during these trying times and accordingly, would be a comparable fund to exchange into for exposure in developed international markets. Additionally, the Quant Foreign Value Fund's benchmark is the same benchmark used for the Quant International Equity Fund, the Morgan Stanley Europe, Australasia and Far East (EAFE) Index (MSCI EAFE). We are committed to helping you reach your long-term investment goals. Please access our web site at www.QuantFunds.com where we update fund prices as well as fund and benchmark performance daily. Additionally, we are continually posting new press releases and interactive tools for you to use. Remember, as a shareholder of the Quant Funds, you can access your current and historical account balances daily as well as make subsequent purchases online. For potential shareholders, we have an interactive online mutual fund application that makes it simple to open a new Quant Funds account. We believe you will be extremely pleased at how easy it is to open an account with the Quant Funds. We continue to strive to provide value to our shareholders by remaining devoted to our discipline and our long-term view of the market. We are available by phone (1-800-326-2151) or email (info@quantfunds.com) at any time to answer your questions and provide assistance. We encourage you to check our web site weekly at www.QuantFunds.com. Thank you very much and best of luck in your investing endeavors. Sincerely, /s/ Willard L. Umphrey Willard L. Umphrey President 55 Old Bedford Road, Lincoln, MA 01773 o voice 800-326-2151 o fax 781-259-1166 o www.QuantFunds.com o Distributed by U.S. Boston Capital Corp. 1 QUANT FUNDS [LOGO] ------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT SMALL CAP FUND -------------------------------------------------------------------------------- COMMON STOCK--96.1%
Shares Value AIR TRAVEL--0.2% AirTran Holdings Inc. (a) 31,930 $ 135,383 ---------- APPAREL & TEXTILES--1.0% Osh Kosh B'Gosh Inc. 26,945 700,570 ---------- BANKS--1.1% Mercantile Bankshares Corporation 19,220 763,034 ---------- BROADCASTING--1.7% Entercom Communications Corporation (a) 22,805 775,370 Regent Communications Inc. (a) 64,235 386,695 ---------- 1,162,065 ---------- BUSINESS SERVICES--3.4% Henry (Jack) & Associates Inc. 100,950 2,290,555 ---------- CONSTRUCTION & MINING EQIUPMENT--0.3% Grant Prideco Inc. (a) 31,790 193,601 ---------- DOMESTIC OIL--1.0% Devon Energy Corporation (a) 19,660 676,304 ---------- DRUG & HEALTHCARE--22.6% Apria Healthcare Group Inc. (a) 57,410 1,486,919 Beverly Enterprises Inc. (a) 110,025 1,122,255 DaVita Inc. (a) 26,210 533,373 ILEX Oncology Inc. (a) 51,585 1,354,622 Lexicon Genetics Inc. (a) 16,965 128,934 Medicis Pharmaceutical Corporation Inc. (a) 24,280 1,213,514 Mid Atlantic Medical Services Inc. (a) 124,530 2,615,130 NBTY Inc. (a) 53,535 704,521 Onyx Pharmaceuticals Inc. (a) 36,480 128,045 Orthodontic Centers of America Inc. (a) 83,155 2,049,771 Priority Healthcare Corporation (a) 51,845 1,244,280 Schein (Henry) Inc. (a) 23,495 906,907 St. Jude Medical Inc. (a) 19,455 1,331,695 Telik Inc. (a) 42,490 276,185 ---------- 15,096,151 ---------- ELECTRICAL EQUIPMENT--2.6% Amphenol Corporation (a) 24,580 854,155 Cable Design Technologies Corporation (a) 73,307 868,688 ---------- 1,722,843 ---------- FINANCIAL SERVICES--5.6% IndyMac Bancorp Inc. (a) 82,350 2,232,508 Metris Companies 60,860 1,506,285 ---------- 3,738,793 ---------- FOOD & BEVERAGE--4.2% Interstate Bakeries Corporation 75,060 1,914,030 Whole Foods Market Inc. (a) 27,510 864,089 ---------- 2,778,119 ---------- GAS EXPLORATION--3.4% Chesapeake Energy Corporation (a) 253,066 1,429,823 Global Marine Inc. (a) 59,320 830,480 ---------- 2,260,303 ---------- HOUSEHOLD PRODUCTS--2.4% Cost Plus Inc. (a) 45,535 836,023 Tupperware Corporation 37,985 757,421 ---------- 1,593,444 ----------
Shares Value INSURANCE--7.1% Everest Reinsurance Group Ltd. 30,010 $1,941,647 Mutual Risk Management Ltd. 113,110 859,636 RenaissanceRe Holdings 21,905 1,947,573 ---------- 4,748,856 ---------- INTERNATIONAL OIL--0.4% Trico Marine Services Inc. (a) 42,450 251,304 ---------- LIQUOR--1.6% Coors Adolph Company 23,135 1,041,075 ---------- MISCELLANEOUS--3.7% International Speedway Corporation 29,425 1,024,873 United Rentals Inc. (a) 81,750 1,417,545 ---------- 2,442,418 ---------- PETROLEUM SERVICES--0.7% Core Laboratories NV (a) 32,120 413,063 ---------- POLLUTION CONTROL--1.6% Waste Connections Inc. (a) 39,500 1,066,500 ---------- PUBLISHING--3.8% Scholastic Corporation (a) 58,450 2,542,575 ---------- REAL ESTATE--6.4% Arden Realty Inc. 47,700 1,219,689 CarrAmerica Realty Corporation 22,235 666,161 Highwoods Properties Inc. 45,915 1,136,396 SL Green Realty Corporation 39,600 1,248,192 ---------- 4,270,438 ---------- RETAIL TRADE--6.8% Abercrombie & Fitch Company (a) 38,945 685,043 American Eagle Outfitters Inc. (a) 33,580 668,242 BJ's Wholesale Club Inc. (a) 18,905 900,067 Blockbuster Inc. 53,170 1,164,423 Cash America International Inc. 85,280 776,048 Genesco Inc. 21,940 356,525 ---------- 4,550,348 ---------- SOFTWARE--11.4% Activision Inc. (a) 46,710 1,271,446 Borland Software Corporation (a) 63,545 514,714 NVIDIA Corporation (a) 88,430 2,429,172 Peregrine Systems Inc. (a) 66,955 845,642 Steris Corporation (a) 95,725 1,881,954 Ulticom Inc. (a) 77,020 622,322 ---------- 7,565,250 ---------- TECHNOLOGY--1.7% PerkinElmer Inc. 42,424 1,113,206 ---------- TELECOMMUNICATION SERVICES--1.4% Global Crossing Ltd. (a) 94,150 169,470 Montana Power Company 71,180 373,695 Western Wireless Corporation (a) 11,350 383,403 ---------- 926,568 ---------- TOTAL COMMON STOCK (Cost $59,974,148) 64,042,766 ----------
-------------------------------------------------------------------------------- 2 QUANT FUNDS --------------------------------------------------------------------------[LOGO] PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT SMALL CAP FUND--Continued -------------------------------------------------------------------------------- SHORT TERM INVESTMENTS--4.4%
Par Value Value State Street Bank & Trust Repurchase Agreement 1.25%, 10/1/01, (Dated 9/28/01), Collateralized by $1,950,000 U.S. Treasury Bond 10.625%, 8/15/15, Market Value $3,030,000, Repurchase Proceeds $2,966,309 (Cost $2,966,000) $2,966,000 $ 2,966,000 ------------ TOTAL INVESTMENTS--100.5% (Cost $62,940,148) (b) 67,008,766 OTHER ASSETS & LIABILITIES (NET)--(0.5)% (355,295) ------------ NET ASSETS--100% $66,653,471 ============ (a) Non-income producing security. (b) At September 30, 2001, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $62,940,148 was as follows: Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost $12,164,821 Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value (8,096,203) ------------ Net unrealized appreciation $ 4,068,618 ============
The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 3 QUANT FUNDS [LOGO]-------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT MID CAP FUND -------------------------------------------------------------------------------- COMMON STOCK--96.9%
Shares Value APPAREL & TEXTILES--2.5% Lands' End Inc. (a) 11,860 $ 342,754 ---------- BANKS--4.2% Hibernia Corporation 17,550 286,942 Zions Bancorporation 5,095 273,398 ---------- 560,340 ---------- BUSINESS SERVICES--2.1% Manpower Inc. 10,550 277,782 ---------- CHEMICALS--2.0% Martin Marietta Materials Inc. 6,775 264,970 ---------- COMPUTERS & BUSINESS EQUIPMENT--3.4% Advanced Micro Devices Inc. (a) 14,170 115,485 Citrix Systems Inc. (a) 15,590 308,682 Wind River Systems Inc. (a) 2,845 29,873 ---------- 454,040 ---------- DRUGS & HEALTHCARE--16.1% Forest Labs Inc. (a) 3,860 278,461 Genzyme Corporation (a) 6,910 313,852 Health Management Association (a) 13,055 271,022 Health Net Inc. (a) 17,315 332,794 HEALTHSOUTH Corporation (a) 17,750 288,615 King Pharmaceuticals Inc. (a) 9,896 415,137 Shire Pharmaceuticals Group PLC (a) (c) 6,780 273,234 ---------- 2,173,115 ---------- ELECTRONICS--4.4% American Power Conversion Corporation (a) 14,055 164,162 Applied Micro Circuits Corporation (a) 15,680 109,603 SPX Corporation (a) 3,395 281,446 Vitesse Semiconductor Corporation (a) 4,710 36,503 ---------- 591,714 ---------- FINANCIAL SERVICES--3.5% Metris Companies Inc. 9,250 228,938 Old Republic International Corporation 9,120 239,035 ---------- 467,973 ---------- FOOD & BEVERAGE--3.0% Pepsi Bottling Group Inc. 8,955 412,557 ---------- FOREST PRODUCTS--2.1% Georgia-Pacific Corporation 9,785 281,710 ---------- GAS & PIPELINE UTILITIES--1.8% Kinder Morgan Inc. 4,935 242,851 ---------- GAS EXPLORATION--1.6% Noble Drilling Corporation (a) 9,155 219,720 ---------- HOTELS & RESTAURANTS--6.3% Brinker International Inc. (a) 18,055 426,459 Darden Restaurants Inc. 16,385 430,106 ---------- 856,565 ---------- INSURANCE--12.1% ACE Limited 9,050 261,273 Allmerica Financial Corporation 7,570 339,515 Lincoln National Corporation 6,090 283,977 SAFECO Corporation 12,855 389,892 XL Capital Ltd. 4,480 353,920 ---------- 1,628,577 ----------
Shares Value INVESTMENT COMPANIES--9.0% Bear Stearns Companies Inc. 6,305 $ 315,313 Eaton Vance Corporation 10,245 321,181 Public Storage Inc. 8,330 278,222 Waddell & Reed Financial Inc. 11,380 295,880 ---------- 1,210,596 ---------- PETROLEUM SERVICES--4.5% ENSCO International Inc. 10,965 160,308 Questar Corporation 11,550 233,079 Weatherford International Inc. 8,165 208,289 ---------- 601,676 ---------- RETAIL TRADE--12.3% BJ's Wholesale Club Inc. (a) 7,900 376,119 Circuit City Stores Inc. 18,660 223,920 Coach Inc. (a) 9,340 247,603 Office Depot Inc. (a) 39,290 534,344 Venator Group Inc. (a) 17,875 272,594 ---------- 1,654,580 ---------- SOFTWARE--1.7% Network Appliance Inc. (a) 16,355 111,214 Rational Software Corporation (a) 13,775 119,292 ---------- 230,506 ---------- TELECOMMUNICATION SERVICES--1.1% Montana Power Company 20,105 105,551 Sonus Networks Inc. (a) 13,950 41,850 ---------- 147,401 ---------- UTILITIES--1.3% Constellation Energy Group Inc. 7,395 178,959 ---------- WASTE MANAGEMENT--1.9% Allied Waste Industries Inc. (a) 20,155 256,976 ---------- TOTAL COMMON STOCK (Cost $15,764,859) 13,055,362 ----------
-------------------------------------------------------------------------------- 4 QUANT FUNDS --------------------------------------------------------------------------[LOGO] PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT MID CAP FUND--Continued -------------------------------------------------------------------------------- SHORT TERM INVESTMENTS--1.2%
Par Value Value State Street Bank & Trust Repurchase Agreement 1.25%, 10/1/01, (Dated 9/28/01), Collateralized by $140,000 U.S. Treasury Bond 6.625%, 5/15/07, Market Value $161,299, Repurchase Proceeds $158,016 (Cost $158,000) $158,000 $ 158,000 ----------- TOTAL INVESTMENTS--98.1% (Cost $15,922,859) (b) 13,213,362 OTHER ASSETS & LIABILITIES (NET)-- 1.9% 258,245 ----------- NET ASSETS--100% $13,471,607 =========== (a) Non-income producing security. (b) At September 30, 2001, the unrealized depreciation of investments based on aggregate cost for federal tax purposes of $15,922,859 was as follows: Aggregate gross unrealized appreciation for all in- vestments in which there is an excess of value over tax cost $ 1,221,252 Aggregate gross unrealized depreciation for all in- vestments in which there is an excess of tax cost over value (3,930,749) ----------- Net unrealized depreciation $(2,709,497) =========== (c) ADR--American Depository Receipts
The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 5 QUANT FUNDS [LOGO]-------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT GROWTH AND INCOME FUND -------------------------------------------------------------------------------- COMMON STOCK--97.0%
Shares Value AUTOMOBILES--1.1% Toyota Motor Company (c) 11,300 $ 585,905 --------- BANKS--1.1% Northern Trust Corporation 10,500 551,040 --------- BROADCASTING--2.7% Comcast Corporation (a) 29,700 1,065,339 Univision Communications Inc. (a) 14,200 325,890 --------- 1,391,229 --------- BUSINESS SERVICES--3.5% Automatic Data Processing Inc. 16,000 752,640 International Business Machines 11,800 1,089,140 --------- 1,841,780 --------- COMPUTERS & BUSINESS EQUIPMENT--4.5% Cisco Systems Inc. (a) 45,300 551,754 Dell Computer Corporation (a) 38,600 715,258 QLogic Corporation (a) 16,900 321,100 VeriSign Inc. (a) 17,600 737,440 --------- 2,325,552 --------- DOMESTIC OIL--0.8% Burlington Resources Inc. 12,700 434,467 --------- DRUGS & HEALTHCARE--14.4% Amgen Inc. (a) 25,600 1,504,512 Biogen Inc. (a) 16,600 922,628 Biovail Corporation (a) 25,900 1,201,760 Cardinal Health Inc. 15,000 1,109,250 Elan Corporation PLC (a) (c) 14,000 678,300 Genentech Inc. (a) 20,200 888,800 Pfizer, Inc. 29,400 1,178,940 --------- 7,484,190 --------- ELECTRICAL EQUIPMENT & SERVICES--5.6% General Electric Company 59,600 2,217,120 Mirant Corporation (a) 31,926 699,179 --------- 2,916,299 --------- ELECTRONICS--7.2% Applied Materials Inc. (a) 21,100 600,084 Flextronics International (a) 35,400 585,516 Intel Corporation 48,700 992,993 NTT Docomo Inc. (c) 7,600 513,556 Sony Corporation (a) 14,000 464,800 SPX Corporation (a) 6,800 563,720 --------- 3,720,669 --------- FINANCIAL SERVICES--14.2% Citigroup Inc. 41,666 1,687,473 Federal Home Loan Mortgage Corporation 18,600 1,209,000 FleetBoston Financial Corporation 22,600 830,550 Goldman Sachs Group Inc. 17,605 1,256,117 HSBC Holdings PLC (c) 20,000 1,074,000 Morgan Stanley Dean Witter & Company 28,700 1,330,245 --------- 7,387,385 --------- FOOD & BEVERAGE--4.1% Coca-Cola Company 23,800 1,115,030 PepsiCo Inc. 21,100 1,023,350 --------- 2,138,380 ---------
Shares Value GAS EXPLORATION--0.7% Noble Drilling Corporation (a) 14,400 $ 345,600 --------- HOUSEHOLD PRODUCTS--1.9% Kimberly-Clark Corporation 16,300 1,010,600 --------- INSURANCE--4.9% American International Group Inc. 20,000 1,560,000 Marsh & McLennan Companies Inc. 10,100 976,670 --------- 2,536,670 --------- INTERNATIONAL OIL--2.8% Anadarko Petroleum Corporation 13,100 629,848 BP PLC (c) 16,468 809,732 --------- 1,439,580 --------- LIQUOR--1.5% Anheuser-Busch Companies Inc. 18,400 770,592 --------- MISCELLANEOUS--3.7% Ecolab Inc. 26,200 951,846 Invitrogen Corporation (a) 14,400 946,944 --------- 1,898,790 --------- PETROLEUM SERVICES--3.1% Royal Dutch Petroleum Company (d) 18,800 944,700 Schlumberger Ltd. 14,500 662,650 --------- 1,607,350 --------- RETAIL TRADE--5.7% Home Depot Inc. 34,400 1,319,928 Wal-Mart Stores Inc. 32,700 1,618,650 --------- 2,938,578 --------- SOFTWARE--6.2% Amdocs Limited (a) 24,000 639,600 Brocade Communications Systems Inc. (a) 25,300 354,959 EMC Corporation 32,300 379,525 Microsoft Corporation (a) 35,600 1,821,652 --------- 3,195,736 --------- TELECOMMUNICATION SERVICES--7.3% Alltel Corporation 15,300 886,635 Ericsson (LM) Telephone Company (c) 49,100 171,359 Qwest Communications International Inc. 31,200 521,040 Sprint Corporation (a) 32,300 849,167 Vodafone Group PLC (c) 34,050 747,738 WorldCom Inc. GA--MCI Group 1,508 22,967 WorldCom Inc.--WorldCom Group 37,700 567,008 --------- 3,765,914 ---------
-------------------------------------------------------------------------------- 6 QUANT FUNDS --------------------------------------------------------------------------[LOGO] PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT GROWTH AND INCOME FUND--Continued --------------------------------------------------------------------------------
Value TOTAL COMMON STOCK (Cost $59,979,765) (b) $50,286,306 OTHER ASSETS & LIABILITIES (NET)--3.0% 1,563,265 ----------- NET ASSETS--100% $51,849,571 =========== (a) Non-income producing security. (b) At September 30, 2001, the unrealized depreciation of investments based on aggregate cost for federal tax purposes of $59,979,765 was as follows: Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost $ 3,589,579 Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value (13,283,038) ----------- Net unrealized depreciation $(9,693,459) =========== (c) ADR--American Depository Receipts (d) GDR--Global Depository Receipts
The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 7 QUANT FUNDS [LOGO]-------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------- COMMON STOCK--100.2%
Shares Value CANADA--3.7% Alberta Energy Ltd. 3,300 $ 112,006 Biovail Corporation (a) (c) 5,400 250,560 --------- 362,566 --------- FRANCE--13.9% Alcatel Alsthom (c) 13,800 160,080 Axa 11,688 230,497 BNP Paribas 2,803 229,068 Sanofi Synthelabo 2,600 169,178 Schlumberger Ltd. (c) 4,200 191,940 Suez 7,900 262,413 Total Fina Elf 810 108,728 --------- 1,351,904 --------- GERMANY--2.3% Allianz AG (d) 1,000 225,692 --------- HONG KONG--2.0% Hutchison Whampoa 26,000 192,512 --------- IRELAND--3.1% CRH 6,900 102,353 Elan PLC (a) (c) 4,100 198,645 --------- 300,998 --------- JAPAN--21.7% Canon Inc. 8,000 219,445 Fujitsu 21,000 175,984 Honda Motor Company 7,000 227,246 Matsushita Elc Industries (d) 15,000 183,709 Mitsubishi Tokyo FIN 25 195,034 Nikko Securities (d) 24,000 127,439 Nomura Securities 12,000 156,732 NTT Docomo 22 297,123 Sony Corporation 8,000 294,606 Takeda Chemical Industries 5,000 230,685 --------- 2,108,003 --------- NETHERLANDS--11.3% Ahold (Kon) NV 4,325 120,047 ASML HOLDING NV (a) 12,700 141,234 Ing Groep NV 9,100 243,723 Philips Electronics NV 11,380 220,591 Royal Dutch Petroleum 3,600 180,911 Unilever NV 3,500 189,199 --------- 1,095,705 --------- SINGAPORE--5.6% Chartered Semi Conductors (a) (d) 116,000 203,503 Flextronics Internationals (a) (c) 20,700 342,378 --------- 545,881 --------- SPAIN--5.7% Banco Santander Central Hisp 20,633 158,103 Endesa SA 7,800 121,028 Telefonica SA (a) 24,693 272,808 --------- 551,939 --------- SWEDEN--3.5% Ericsson (LM) Telecommunications 93,700 338,726 ---------
Shares Value SWITZERLAND--2.7% UBS AG (d) 5,700 $ 266,263 --------- UNITED KINGDOM--24.7% AstraZeneca 2,400 111,673 Barclays PLC 10,359 284,940 BP Amoco PLC 21,600 178,465 British Telecommunications PLC 19,248 96,211 Cable & Wireless 30,000 123,603 Diageo 22,354 234,811 HAYS 77,200 173,648 HSBC Holdings PLC 29,035 306,057 Lloyds TSB Group PLC 25,135 240,189 Vodafone Group PLC 246,403 543,374 WPP GROUP 14,400 104,792 --------- 2,397,763 --------- TOTAL COMMON STOCK (Cost $14,083,614) (b) 9,737,952 ---------
-------------------------------------------------------------------------------- 8 QUANT FUNDS --------------------------------------------------------------------------[LOGO] PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT INTERNATIONAL EQUITY FUND--Continued -------------------------------------------------------------------------------- SHORT TERM INVESTMENTS--7.7%
Principal Amount Value AIM Liquid Assets Portfolio (e) $356,414 $ 356,414 AIM Treasury Portfolio (e) 120,401 120,401 Alliance Prime (e) 110,847 110,847 Federated Treasury (e) 92 92 PNC Temp Fund (e) 163,859 163,859 ----------- Total Short Term Investments (Cost $751,613) 751,613 ----------- TOTAL INVESTMENTS--108.0% (Cost $14,835,227) 10,489,565 OTHER ASSETS & LIABILITIES (NET)--(8.0)% (773,610) ----------- NET ASSETS--100% $ 9,715,955 =========== (a) Non-income producing security. (b) At September 30, 2001, the unrealized depreciation of investments based on aggregate cost for federal tax purposes of $14,835,227 was as follows: Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost $ 374,417 Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value (4,720,079) ----------- Net unrealized depreciation $(4,345,662) =========== (c) ADR--American Depository Receipts (d) A portion of security is on loan at 9/30/01. (Note 6) (e) Represents investments of securities lending collateral. (Note 6)
SECTOR ALLOCATIONS (as a percentage of Total Common Stock) ---------------------------------------------------------- Basic Materials 1.0% Business Services 1.8% Consumer Basics 11.8% Consumer Cyclicals 5.1% Consumer Durables 2.3% Consumer Non-Durables 7.7% Energy 9.2% Finance 27.4% Technology 21.4% Utilities 12.3% The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 9 QUANT FUNDS [LOGO]-------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT EMERGING MARKETS FUND -------------------------------------------------------------------------------- COMMON STOCK--85.8%
Shares Value ARGENTINA--2.1% BBVA Banco Frances 20,000 $ 59,211 Perez Companc SA 115,708 116,887 Telecom Argentina 20,000 34,207 --------- 210,305 --------- BRAZIL--2.4% Centrais Electrobras 3,030,000 36,297 Compania Souza Cruz 25,000 104,751 Sider Nacional Compania 5,383,000 54,414 Tele Norte Lests 5,000,000 40,965 --------- 236,427 --------- CHILE--3.6% Banco Santander Chile (d) 9,600 170,880 Compania De Telecomunicacion De Chile (d) 4,110 40,483 Empresa Nacional De Electricidad (d) 10,539 91,268 Enersis SA (d) 4,138 50,649 --------- 353,280 --------- CHINA--1.5% Huaneng Power International Inc. (d) 6,600 151,998 --------- CZECHOSLOVAKIA--0.4% Ceske Radiokomunik (e) 6,000 43,500 --------- EGYPT--0.3% Egypt Mobile Phone 2,500 24,547 --------- HONG KONG--6.5% Brilliance China 200,000 29,233 China Merchants Holdings International 75,000 44,233 China Mobile (HK) 45,000 142,798 China Petrolium & Chemical 300,000 41,926 China Resources EN 65,000 56,670 Citic Ka Wah Bank 300,000 74,620 Citic Pacific Ltd. 30,000 56,542 CNOOC Ltd. 60,000 59,619 Cosco Pacific Ltd. 90,000 40,387 Legend Holdings 70,000 26,925 Petrochina Company 250,000 47,439 Sinopec Yizheng Chemical 250,000 25,643 --------- 646,035 --------- HUNGARY--2.5% OTP Bank 4,000 192,803 Richter Gedeon Vegysze 1,000 55,646 --------- 248,449 --------- INDIA--4.9% Infosys Technologies Ltd. (d) 1,000 33,810 Mahanagar Telephone Nigam (e) 30,000 163,500 Ranbaxy Laboratories. Ltd. (e) 4,700 67,445 State Bank of India (e) 9,000 67,680 Videsh Sanchar Nigam Ltd. (d) 12,750 120,870 Wipro Ltd. (d) 1,700 36,040 --------- 489,345 --------- ISRAEL--4.8% Bank Hapoalim 45,000 88,037 Bank Leumi Le Israel 35,000 64,374 Bezeq Israel Telecommunication 150,000 163,915
Shares Value ISRAEL--Continued Check Point Software 1,800 $ 39,636 Teva Pharma Ind 2,000 116,923 --------- 472,885 --------- KOREA, REPUBLIC OF--9.6% Housing & Commercial Bank 2,420 51,963 Kookmin Bank 10,000 123,466 Korea Electric Power 11,600 186,810 Korea Telecom Corporation 2,000 68,098 KT Freetel Company 3,000 64,647 Samsung Electronics 2,200 236,197 Samsung SDI 2,000 65,184 SK Telecom 1,000 159,509 --------- 955,874 --------- MALAYSIA--7.2% British American Tobacco 10,000 91,447 Malakoff Bhd 30,000 71,053 Malayan Bank Bhd 25,000 67,763 Malaysia International Shipping 60,000 107,369 Petronas Dagangan 100,000 98,421 Public Bank Bhd 91,000 62,263 Sime Darby Bhd 90,000 108,947 Telekom Malaysia 18,000 43,579 Tenaga Nasional Bhd 25,000 64,803 --------- 715,645 --------- MEXICO--10.1% America Movil SA 196,800 146,054 Apasco SA 15,000 64,648 Cemex SA Ptg Cert 50,000 203,931 Fomento Econ Mexico 20,000 56,764 Grupo Televisa SA 21,637 30,956 Telefonos De Mexico 196,800 317,967 Wal-Mart De Mexico 95,000 179,754 --------- 1,000,074 --------- PERU--2.1% Cerv Peru Backus & Johnston 227,173 61,323 Minas Buenaventura 7,805 83,491 Minsur SA 80,337 61,137 --------- 205,951 --------- PHILIPPINES--2.1% Ayala Corporation 700,000 74,976 Manila Electric Company 60,000 39,727 Philippine Long Distance 1,600 14,956 San Miguel Corporation 74,540 74,032 --------- 203,691 --------- POLAND--2.3% BRE Bank 7,000 157,270 Polski Koncern Naf 12,000 43,797 Telekomunikacja Poland 10,000 27,728 --------- 228,795 --------- SOUTH AFRICA--10.5% Anglo American Platinum 5,000 166,280 Anglo American 5,000 59,528 Bidvest Group 20,144 95,908
-------------------------------------------------------------------------------- 10 QUANT FUNDS --------------------------------------------------------------------------[LOGO] PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT EMERGING MARKETS FUND--Continued --------------------------------------------------------------------------------
Shares Value SOUTH AFRICA--Continued Impala Platinum 2,000 $ 70,503 Nedcor Ltd. 9,135 133,669 Old Mutual 40,000 66,290 Sanlam 80,000 81,676 Sappi 20,000 172,044 Sasol 15,000 122,382 Standard Bank Inv 20,000 68,507 --------- 1,036,787 --------- TAIWAN--7.5% Asustek Computer Inc. (e) 31,250 97,500 Macronix International Ltd. (d) 7,730 39,197 MSCI Taiwan Index Series (b) (f) 6,800 396,916 Siliconware Precision (d) 34,350 82,852 Taiwan Semiconductor Manufacturing Company Ltd. (d) 7,000 66,430 United Microelectronics Corporation (d) 11,500 61,180 --------- 744,075 --------- THAILAND--3.9% Advanced Information Services 12,000 128,389 Bangkok Bank 70,000 63,722 Banpu Co (warrants exp. 1/14/03) (a) 24,000 1,241 PTT Exploration & Production 80,000 197,797 --------- 391,149 --------- TURKEY--1.5% Sifas 3,689,852 2,258 Tupras 8,375,000 72,025 Turkiye Is Bankasi 7,770,000 40,404 Vestel Elektronik 20,720,000 34,706 --------- 149,393 --------- TOTAL COMMON STOCK (Cost $11,018,833) 8,508,205 --------- PREFERRED STOCK--5.4% BRAZIL--5.4% Banco Bradesco SA 18,000,000 $ 71,448 Banco Itau SA 900,000 57,239 Centrais Electrobras 5,380,000 59,174 Eletropaulo Metropolitana Elet 3,500,000 76,599 Petroleo Brasileiro SA 8,000 153,537 Vale Rio Doce Compania 3,648 72,059 Votorantim Papel E Celulose SA 2,000,000 52,151 --------- TOTAL PREFERRED STOCK (Cost $783,544) 542,207 ---------
SHORT TERM INVESTMENTS--7.6%
Par Value Value State Street Bank & Trust Repurchase Agreement 1.25%, 10/1/01, (Dated 9/28/01), Collateralized by $570,000 U.S. Treasury Bond 8.00%, 11/15/21, Market Value $767,363, Repurchase Proceeds $752,078 (Cost $752,000) $752,000 $752,000 --------
Value TOTAL INVESTMENTS--98.8% (Cost $12,554,377) (c) $ 9,802,412 OTHER ASSETS & LIABILITIES (NET)--1.2% 116,142 ----------- NET ASSETS--100% $ 9,918,554 =========== (a) Non-income producing security. (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. (Note 2) (c) At September 30, 2001, the unrealized depreciation of investments based on aggregate cost for federal tax purposes of $12,554,377 was as follows: Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost $ 761,336 Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value (3,513,301) ----------- Net unrealized depreciation $(2,751,965) =========== (d) ADR--American Depository Receipts (e) GDR--Global Depository Receipts (f) OPAL, Rule 144A stock, issued by Morgan Stanley Capital (Delaware) LLC. An OPAL represents an optimised portfolio of securities designed to track the performance of a specific benchmark index in a single trade. Emerging Markets has the contractual right to exchange the OPAL for the underlining securities, which may not be restricted securities, at any time.
SECTOR ALLOCATIONS (as a percentage of Total Common Stock and Preferred Stock) ------------------------------------------------------------- Basic Industries 8.7% Capital Goods 3.3% Consumer Basics 8.0% Consumer Durables 0.3% Consumer Services 1.0% Energy 10.5% Finance 23.9% General Business 10.0% Materials 0.7% Miscellaneous 5.1% Real Estate 0.8% Shelter 3.0% Technology 7.1% Telecommunications 1.6% Utilities 16.0% The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 11 QUANT FUNDS [LOGO]-------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS September 30, 2001 (Unaudited) QUANT FOREIGN VALUE FUND -------------------------------------------------------------------------------- COMMON STOCK--83.6%
Shares Value AUSTRALIA--0.5% Novogen Ltd. (a) 160,000 $ 85,476 ---------- CANADA--4.8% GSI Lumonics Inc. (a) 53,400 363,120 Methanex Corporation (a) 78,000 378,837 ---------- 741,957 ---------- FINLAND--8.2% Kone Corporation OYJ-B 8,140 540,770 Konecranes International 12,400 306,942 Yit-Yhtyma OYJ 42,500 435,117 ---------- 1,282,829 ---------- FRANCE--5.7% Christian Dior 18,740 449,382 STMicroelectronics 20,400 437,763 ---------- 887,145 ---------- GERMANY--1.9% Continental AG 30,600 300,753 ---------- HONG KONG--3.8% Asm Pacific Technology 346,045 401,527 Vtech Holdings Ltd. 691,015 186,054 ---------- 587,581 ---------- IRELAND--2.6% Smurfit (Jefferson) Group 240,000 410,614 ---------- ITALY--2.7% Pirelli SPA 292,500 423,774 ---------- JAPAN--4.1% Arisawa Manufacturing Company Ltd. 6,900 114,315 East Japan Railway 88 530,761 ---------- 645,076 ---------- KOREA, REPUBLIC OF--4.6% Samsung Electronics Ltd. 1,000 107,362 Samsung Electronics Ltd. (c) (d) 4,400 259,160 Samsung SDI 10,700 348,735 ---------- 715,257 ---------- NETHERLANDS--5.3% ABN-AMRO Holdings NV 25,339 417,612 Draka Holdings 10,985 412,372 ---------- 829,984 ---------- SOUTH AFRICA--9.2% Impala Platinum Holdings Ltd. 13,200 465,317 Palabora Mining Company 33,165 129,227 Sanlam Ltd. 350,000 357,335 Sappi Ltd. 55,700 479,142 ---------- 1,431,021 ---------- SPAIN--7.1% Banco Bilbao Vizcaya Argentaria 33,700 346,556 Repsol YPS SA 27,100 389,665 Union Electrica Fenosa 25,100 371,187 ---------- 1,107,408 ---------- THAILAND--3.5% Total Access Communication (a) 363,200 541,168 ----------
Shares Value UNITED KINGDOM--19.6% Barratt Developments PLC 102,000 $ 452,865 Bellway PLC 80,100 460,096 BHP Billiton PLC 133,000 546,995 Countryside Properties PLC 181,000 385,841 Crest Nicholson PLC 179,000 459,419 FKI PLC 178,200 372,667 Persimmon PLC 84,335 374,433 ---------- 3,052,316 ---------- TOTAL COMMON STOCK (Cost $15,957,190) 13,042,359 ---------- SHORT TERM INVESTMENTS--13.1% UNITED STATES Prudential Funding Corporation Commercial Paper 2,048,000 2,048,000 ----------- TOTAL INVESTMENTS--96.7% (Cost $18,005,190) (b) 15,090,359 OTHER ASSETS & LIABILITIES (NET)--3.3% 507,546 ---------- NET ASSETS--100% $15,597,905 =========== (a) Non-income producing security. (b) At September 30, 2001, the unrealized depreciation of investments based on aggregate cost for federal tax purposes of $18,005,190 was as follows: Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost $ 935,262 Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value (3,850,093) ----------- Net unrealized depreciation $(2,914,831) =========== (c) Security exempt from registration under Rule 144A of the Securities Act of 1933. (Note 2) (d) GDR--Global Depository Receipts
SECTOR ALLOCATIONS (as a percentage of Total Common Stock) ---------------------------------------------------------- Basic Industries 18.5% Capital Goods 30.6% Consumer Basics 0.7% Consumer Durables 5.6% Consumer Non-Durables 3.4% Energy 3.0% Finance 8.6% General Business 4.2% Shelter 6.3% Technology 12.2% Transportation 4.1% Utilities 2.8% -------------------------------------------------------------------------------- 12 STATEMENT OF ASSETS AND LIABILITIES September 30, 2001 (Unaudited)
Small Cap Mid Cap Assets: Investments at value (Note 2) * $67,008,766 $ 13,213,362 Foreign currency at value (Cost $12,996 for International Equity, $81,348 for Emerging Markets and $298,226 for Foreign Value) (Note 2) -- -- Cash 1,639 1,103 Dividends, interest and foreign tax reclaims receivable 47,992 2,680 Receivable for investments sold 221,248 553,489 Receivable for loaned securities -- -- Receivable for shares of beneficial interest sold 541 -- Receivable from Manager for reimbursement of expenses (Note 3) -- -- Other assets 17,141 3,841 ----------- ------------ Total assets 67,297,327 13,774,475 ----------- ------------ Liabilities: Collateral for securities loaned (Note 6) -- -- Payable for investments purchased 532,683 276,165 Payable for compensation of Manager (Note 3) 55,964 11,906 Payable for distribution fees (Note 3) 24,233 2,679 Payable to custodian 6,397 5,417 Payable to transfer agent (Note 3) 13,115 2,031 Other accrued expenses 11,464 4,670 ----------- ------------ Total liabilities 643,856 302,868 ----------- ------------ Net assets $66,653,471 $ 13,471,607 =========== ============ Net Assets consist of: Shares of beneficial interest $59,441,826 $ 16,836,979 Undistributed net investment income (loss) (378,317) (98,869) Accumulated net realized gain (loss) on investments and foreign denominated assets, liabilities and currency 3,521,344 (557,006) Unrealized appreciation (depreciation) of investments and foreign denominated assets, liabilities and currency 4,068,618 (2,709,497) ----------- ------------ $66,653,471 $ 13,471,607 ----------- ------------ Investments, at cost $62,940,148 $ 15,922,859 ----------- ------------ Net assets Ordinary Shares $57,756,709 $ 12,104,137 Institutional Shares $ 8,896,762 $ 1,367,470 Shares of beneficial interest outstanding (Unlimited number of shares authorized) Ordinary Shares 3,464,864 1,084,320 Institutional Shares 503,471 118,715 Net asset value and offering price per share ** Ordinary Shares $ 16.67 $ 11.16 Institutional Shares $ 17.67 $ 11.52 * Includes securities on loan of $908,266 for International Equity. (Note 6) ** A deferred sales charge amounting to 1% of the net asset value of the Ordinary Shares redeemed is withheld and paid to the Distributor. No deferred sales charge is withheld from redemptions of the Institutional Shares. In addition, no deferred sales charge is withheld from the Ordinary Shares of Mid Cap purchased after August 1, 1996. Growth and International Income Equity Assets: Investments at value (Note 2) * $ 50,286,306 $ 10,489,565 Foreign currency at value (Cost $12,996 for International Equity, $81,348 for Emerging Markets and $298,226 for Foreign Value) (Note 2) -- 13,007 Cash 1,320,022 -- Dividends, interest and foreign tax reclaims receivable 70,426 48,577 Receivable for investments sold -- -- Receivable for loaned securities -- 179,900 Receivable for shares of beneficial interest sold 240,689 -- Receivable from Manager for reimbursement of expenses (Note 3) -- 1,869 Other assets 19,964 3,570 ------------ ------------ Total assets 51,937,407 10,736,488 ------------ ------------ Liabilities: Collateral for securities loaned (Note 6) -- 931,513 Payable for investments purchased -- 62,384 Payable for compensation of Manager (Note 3) 32,989 8,432 Payable for distribution fees (Note 3) 21,468 4,167 Payable to custodian 5,541 5,976 Payable to transfer agent (Note 3) 13,021 3,757 Other accrued expenses 14,817 4,304 ------------ ------------ Total liabilities 87,836 1,020,533 ------------ ------------ Net assets $ 51,849,571 $ 9,715,955 ============ ============ Net Assets consist of: Shares of beneficial interest $ 60,396,058 $ 15,631,126 Undistributed net investment income (loss) (284,268) (39,468) Accumulated net realized gain (loss) on investments and foreign denominated assets, liabilities and currency 1,431,240 (1,529,550) Unrealized appreciation (depreciation) of investments and foreign denominated assets, liabilities and currency (9,693,459) (4,346,153) ------------ ------------ $ 51,849,571 $ 9,715,955 ------------ ------------ Investments, at cost $ 59,979,765 $ 14,835,227 ------------ ------------ Net assets Ordinary Shares $ 50,597,039 $ 9,643,020 Institutional Shares $ 1,252,532 $ 72,935 Shares of beneficial interest outstanding (Unlimited number of shares authorized) Ordinary Shares 4,225,731 1,580,785 Institutional Shares 102,133 11,920 Net asset value and offering price per share ** Ordinary Shares $ 11.97 $ 6.10 Institutional Shares $ 12.26 $ 6.12 * Includes securities on loan of $908,266 for International Equity. (Note 6) ** A deferred sales charge amounting to 1% of the net asset value of the Ordinary Shares redeemed is withheld and paid to the Distributor. No deferred sales charge is withheld from redemptions of the Institutional Shares. In addition, no deferred sales charge is withheld from the Ordinary Shares of Mid Cap purchased after August 1, 1996. Emerging Foreign Markets Value Assets: Investments at value (Note 2) * $ 9,802,412 $ 15,090,359 Foreign currency at value (Cost $12,996 for International Equity, $81,348 for Emerging Markets and $298,226 for Foreign Value) (Note 2) 80,497 304,037 Cash 1,660 968 Dividends, interest and foreign tax reclaims receivable 60,129 73,839 Receivable for investments sold 1,197 -- Receivable for loaned securities -- -- Receivable for shares of beneficial interest sold -- 160,000 Receivable from Manager for reimbursement of expenses (Note 3) -- -- Other assets 2,926 3,025 ------------ ------------ Total assets 9,948,821 15,632,228 ------------ ------------ Liabilities: Collateral for securities loaned (Note 6) -- -- Payable for investments purchased -- -- Payable for compensation of Manager (Note 3) 6,984 13,141 Payable for distribution fees (Note 3) 3,669 3,171 Payable to custodian 8,677 9,611 Payable to transfer agent (Note 3) 2,593 1,835 Other accrued expenses 8,344 6,565 ------------ ------------ Total liabilities 30,267 34,323 ------------ ------------ Net assets $ 9,918,554 $ 15,597,905 ============ ============ Net Assets consist of: Shares of beneficial interest $ 14,612,802 $ 19,553,149 Undistributed net investment income (loss) 137,125 109,911 Accumulated net realized gain (loss) on investments and foreign denominated assets, liabilities and currency (2,075,872) (1,154,656) Unrealized appreciation (depreciation) of investments and foreign denominated assets, liabilities and currency (2,755,501) (2,910,499) ------------ ------------ $ 9,918,554 $ 15,597,905 ------------ ------------ Investments, at cost $ 12,554,377 $ 18,005,190 ------------ ------------ Net assets Ordinary Shares $ 8,359,583 $ 15,072,888 Institutional Shares $ 1,558,971 $ 525,017 Shares of beneficial interest outstanding (Unlimited number of shares authorized) Ordinary Shares 1,486,967 2,074,490 Institutional Shares 274,526 71,954 Net asset value and offering price per share ** Ordinary Shares $ 5.62 $ 7.27 Institutional Shares $ 5.68 $ 7.30 * Includes securities on loan of $908,266 for International Equity. (Note 6) ** A deferred sales charge amounting to 1% of the net asset value of the Ordinary Shares redeemed is withheld and paid to the Distributor. No deferred sales charge is withheld from redemptions of the Institutional Shares. In addition, no deferred sales charge is withheld from the Ordinary Shares of Mid Cap purchased after August 1, 1996.
The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 13 STATEMENT OF OPERATIONS Six Months Ended September 30, 2001 (Unaudited)
Small Cap Mid Cap Investment Income: Dividends * $ 272,943 $ 42,458 Interest 51,490 15,969 ------------ ------------ Total investment income 324,433 58,427 ------------ ------------ Expenses: Compensation of Manager (Note 3) 370,687 84,345 Distribution fees, Ordinary Shares (Note 3) 161,788 18,975 Custodian fees 22,360 19,450 Transfer agent fees (Note 3): Ordinary Shares 53,757 12,617 Institutional Shares 7,824 1,404 Audit and legal 26,578 6,149 Registration fees 12,468 2,829 Insurance 6,934 1,615 Compensation of Trustees (Note 3) 6,219 1,422 Printing 8,117 1,921 Miscellaneous (Note 3) 26,046 6,569 ------------ ------------ Total expenses before waivers and/or reimbursements, and reductions 702,778 157,296 Waivers and/or reimbursements of expenses (Note 3) -- -- Fees reduced by credits allowed by Custodian (Note 3) (28) -- ------------ ------------ Expenses, net 702,750 157,296 ------------ ------------ Net investment income (loss) (378,317) (98,869) ------------ ------------ Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Foreign Translation: Net realized gain (loss) (Note 2) on: Investments ** 4,298,166 (70,895) Foreign denominated assets, liabilities and currency -- -- Change in unrealized appreciation (depreciation) of: Investments (7,129,755) (2,627,909) Foreign denominated assets, liabilities and currency -- -- ------------ ------------ Net realized and unrealized gain (loss) (2,831,589) (2,698,804) ------------ ------------ Net increase (decrease) in net assets resulting from operations $ (3,209,906) $ (2,797,673) ============ ============ * Dividends are net of foreign withholding taxes of $8,574 for Growth and Income, $10,744 for International Equity, $16,741 for Emerging Markets and $22,611 for Foreign Value. ** Net realized gain (loss) on Investments is net of foreign withholding taxes of $1,195 for Emerging Markets. Growth and International Emerging Income Equity Markets Investment Income: Dividends * $ 231,657 $ 104,760 $ 198,968 Interest -- 4,339 10,322 ------------ ------------ ------------ Total investment income 231,657 109,099 209,290 ------------ ------------ ------------ Expenses: Compensation of Manager (Note 3) 236,438 63,220 46,626 Distribution fees, Ordinary Shares (Note 3) 153,771 31,349 24,370 Custodian fees 20,110 26,575 35,681 Transfer agent fees (Note 3): Ordinary Shares 51,104 10,425 8,101 Institutional Shares 1,285 88 1,587 Audit and legal 22,735 4,639 4,234 Registration fees 10,470 2,103 1,953 Insurance 5,974 1,224 1,110 Compensation of Trustees (Note 3) 5,264 1,064 981 Printing 7,134 1,472 1,315 Miscellaneous (Note 3) 21,450 4,661 4,301 ------------ ------------ ------------ Total expenses before waivers and/or reimbursements, and reductions 535,735 146,820 130,259 Waivers and/or reimbursements of expenses (Note 3) -- (8,173) -- Fees reduced by credits allowed by Custodian (Note 3) (19,810) (4,041) -- ------------ ------------ ------------ Expenses, net 515,925 134,606 130,259 ------------ ------------ ------------ Net investment income (loss) (284,268) (25,507) 79,031 ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Foreign Translation: Net realized gain (loss) (Note 2) on: Investments ** (351,649) (936,124) (496,559) Foreign denominated assets, liabilities and currency -- 4,419 (15,120) Change in unrealized appreciation (depreciation) of: Investments (7,870,472) (1,487,615) (1,244,394) Foreign denominated assets, liabilities and currency -- 4,465 (174) ------------ ------------ ------------ Net realized and unrealized gain (loss) (8,222,121) (2,414,855) (1,756,247) ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ (8,506,389) $ (2,440,362) $ (1,677,216) ============ ============ ============ * Dividends are net of foreign withholding taxes of $8,574 for Growth and Income, $10,744 for International Equity, $16,741 for Emerging Markets and $22,611 for Foreign Value. ** Net realized gain (loss) on Investments is net of foreign withholding taxes of $1,195 for Emerging Markets. Foreign Value Investment Income: Dividends * $ 247,907 Interest 26,616 ------------ Total investment income 274,523 ------------ Expenses: Compensation of Manager (Note 3) 81,729 Distribution fees, Ordinary Shares (Note 3) 19,654 Custodian fees 27,855 Transfer agent fees (Note 3): Ordinary Shares 13,058 Institutional Shares 518 Audit and legal 5,830 Registration fees 2,735 Insurance 1,521 Compensation of Trustees (Note 3) 1,364 Printing 1,780 Miscellaneous (Note 3) 5,797 ------------ Total expenses before waivers and/or reimbursements, and reductions 161,841 Waivers and/or reimbursements of expenses (Note 3) -- Fees reduced by credits allowed by Custodian (Note 3) -- ------------ Expenses, net 161,841 ------------ Net investment income (loss) 112,682 ------------ Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Foreign Translation: Net realized gain (loss) (Note 2) on: Investments ** 38,334 Foreign denominated assets, liabilities and currency (62,149) Change in unrealized appreciation (depreciation) of: Investments (2,996,864) Foreign denominated assets, liabilities and currency 46,940 ------------ Net realized and unrealized gain (loss) (2,973,739) ------------ Net increase (decrease) in net assets resulting from operations $ (2,861,057) ============ * Dividends are net of foreign withholding taxes of $8,574 for Growth and Income, $10,744 for International Equity, $16,741 for Emerging Markets and $22,611 for Foreign Value. ** Net realized gain (loss) on Investments is net of foreign withholding taxes of $1,195 for Emerging Markets.
The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 14 STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
------------ Small Cap ------------ Six Months ended Year ended September 30, 2001 March 31, 2001 Increase (Decrease) in Net Assets: Operations: Net investment income (loss) $ (378,317) $ (700,086) Net realized gain (loss) on investments, foreign denominated assets, liabilities, currency and written options 4,298,166 2,435,173 Unrealized appreciation (depreciation) of investments and foreign denominated assets, liabilities and currency (7,129,755) (16,975,525) ------------ -------------- Net increase (decrease) in net assets resulting from operations (3,209,906) (15,240,438) Distributions to shareholders from: Net investment income Ordinary Shares -- -- Institutional Shares -- -- Distributions in excess of net investment income Ordinary Shares -- -- Institutional Shares -- -- Net realized gains Ordinary Shares -- (7,744,426) Institutional Shares -- (646,095) Distributions in excess of net realized gains Ordinary Shares -- (1,027,527) Institutional Shares -- (85,724) ------------ -------------- -- (9,503,772) ------------ -------------- Fund share transactions, net (Note 10) 1,286,373 12,531,519 ------------ -------------- Increase (decrease) in net assets (1,923,533) (12,212,691) Net assets beginning of year 68,577,004 80,789,695 ------------ -------------- Net assets end of year * $ 66,653,471 $ 68,577,004 ============ ============== * Includes undistributed net investment income (loss) of $ (378,317) $ -- ------------- Mid Cap ------------ Growth and Income Six Months ended Year ended Six Months ended September 30, 2001 March 31, 2001 September 30, 2001 Increase (Decrease) in Net Assets: Operations: Net investment income (loss) $ (98,869) $ (185,044) $ (284,268) Net realized gain (loss) on investments, foreign denominated assets, liabilities, currency and written options (70,895) 573,060 (351,649) Unrealized appreciation (depreciation) of investments and foreign denominated assets, liabilities and currency (2,627,909) (7,097,153) (7,870,472) ------------ ------------ -------------- Net increase (decrease) in net assets resulting from operations (2,797,673) (6,709,137) (8,506,389) Distributions to shareholders from: Net investment income Ordinary Shares -- -- -- Institutional Shares -- -- -- Distributions in excess of net investment income Ordinary Shares -- -- -- Institutional Shares -- -- -- Net realized gains Ordinary Shares -- (3,420,909) -- Institutional Shares -- (173,143) -- Distributions in excess of net realized gains Ordinary Shares -- (312,561) -- Institutional Shares -- (15,820) -- ------------ ------------ -------------- -- (3,922,433) -- ------------ ------------ -------------- Fund share transactions, net (Note 10) (604,822) 6,598,642 (1,747,786) ------------ ------------ -------------- Increase (decrease) in net assets (3,402,495) (4,032,928) (10,254,175) Net assets beginning of year 16,874,102 20,907,030 62,103,746 ------------ ------------ -------------- Net assets end of year * $ 13,471,607 $ 16,874,102 $ 51,849,571 ============ ============ ============== * Includes undistributed net investment income (loss) of $ (98,869) $ -- $ (284,268) Growth and Income Year ended March 31, 2001 Increase (Decrease) in Net Assets: Operations: Net investment income (loss) $ (872,928) Net realized gain (loss) on investments, foreign denominated assets, liabilities, currency and written options 2,130,696 Unrealized appreciation (depreciation) of investments and foreign denominated assets, liabilities and currency (35,620,481) -------------- Net increase (decrease) in net assets resulting from operations (34,362,713) Distributions to shareholders from: Net investment income Ordinary Shares -- Institutional Shares -- Distributions in excess of net investment income Ordinary Shares -- Institutional Shares -- Net realized gains Ordinary Shares (12,377,008) Institutional Shares (352,094) Distributions in excess of net realized gains Ordinary Shares -- Institutional Shares -- -------------- (12,729,102) -------------- Fund share transactions, net (Note 10) 10,364,625 -------------- Increase (decrease) in net assets (36,727,190) Net assets beginning of year 98,830,936 -------------- Net assets end of year * $ 62,103,746 ============== * Includes undistributed net investment income (loss) of $ --
The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 15 STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)--Continued
------- International Equity ------ Six Months ended Year ended September 30, 2001 March 31, 2001 Increase (Decrease) in Net Assets: Operations: Net investment income (loss) $ (25,507) $ (66,507) Net realized gain (loss) on investments, foreign denominated assets, liabilities, currency and written options (931,705) (423,969) Unrealized appreciation (depreciation) of investments and foreign denominated assets, liabilities and currency (1,483,150) (5,435,351) ------------- ------------ Net increase (decrease) in net assets resulting from operations (2,440,362) (5,925,827) Distributions to shareholders from: Net investment income Ordinary Shares -- -- Institutional Shares -- -- Distributions in excess of net investment income Ordinary Shares -- (142,092) Institutional Shares -- (1,837) Net realized gains Ordinary Shares -- (751,818) Institutional Shares -- (7,078) Distributions in excess of net realized gains Ordinary Shares -- (423,958) Institutional Shares -- (3,991) ------------- ------------ -- (1,330,774) ------------- ------------ Fund share transactions, net (Note 10) (1,146,433) 896,729 ------------- ------------ Increase (decrease) in net assets (3,586,795) (6,359,872) Net assets beginning of year 13,302,750 19,662,622 ------------- ------------ Net assets end of year * $ 9,715,955 $ 13,302,750 ============= ============ * Includes undistributed net investment income (loss) of $ (25,507) $ (13,961) --------- Emerging Markets -------- --Foreign Value-- Six Months ended Year ended Six Months ended September 30, 2001 March 31, 2001 September 30, 2001 Increase (Decrease) in Net Assets: Operations: Net investment income (loss) $ 79,031 $ 91,407 $ 112,682 Net realized gain (loss) on investments, foreign denominated assets, liabilities, currency and written options (511,679) 596,311 (23,815) Unrealized appreciation (depreciation) of investments and foreign denominated assets, liabilities and currency (1,244,568) (5,405,224) (2,949,924) ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations (1,677,216) (4,717,506) (2,861,057) Distributions to shareholders from: Net investment income Ordinary Shares -- -- -- Institutional Shares -- (12,840) -- Distributions in excess of net investment income Ordinary Shares -- -- -- Institutional Shares -- -- -- Net realized gains Ordinary Shares -- -- -- Institutional Shares -- -- -- Distributions in excess of net realized gains Ordinary Shares -- -- -- Institutional Shares -- -- -- ------------- ------------ ------------ -- (12,840) -- ------------- ------------ ------------ Fund share transactions, net (Note 10) 62,607 700,538 3,433,168 ------------- ------------ ------------ Increase (decrease) in net assets (1,614,609) (4,029,808) 572,111 Net assets beginning of year 11,533,163 15,562,971 15,025,794 ------------- ------------ ------------ Net assets end of year * $ 9,918,554 $ 11,533,163 $ 15,597,905 ============= ============ ============ * Includes undistributed net investment income (loss) of $ 79,031 $ 58,094 $ 112,682 Foreign Value Year ended March 31, 2001 Increase (Decrease) in Net Assets: Operations: Net investment income (loss) $ 167,338 Net realized gain (loss) on investments, foreign denominated assets, liabilities, currency and written options (804,053) Unrealized appreciation (depreciation) of investments and foreign denominated assets, liabilities and currency (131,525) ----------- Net increase (decrease) in net assets resulting from operations (768,240) Distributions to shareholders from: Net investment income Ordinary Shares (1,189) Institutional Shares (71) Distributions in excess of net investment income Ordinary Shares -- Institutional Shares -- Net realized gains Ordinary Shares -- Institutional Shares -- Distributions in excess of net realized gains Ordinary Shares -- Institutional Shares -- ----------- (1,260) ----------- Fund share transactions, net (Note 10) 996,556 ----------- Increase (decrease) in net assets 227,056 Net assets beginning of year 14,798,738 ----------- Net assets end of year * $15,025,794 =========== * Includes undistributed net investment income (loss) of $ (2,771)
The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 16 FINANCIAL HIGHLIGHTS (For a share outstanding throughout each period)
Income from -------- Investment Operations(a) -------- Net Asset Net Net Realized Value at Investment and Unrealized Total from Beginning Income Gain (Loss) Investment of Period (Loss)(b)(c) on Securities Operations Small Cap Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $17.46 (0.10) (0.69) (0.79) Year Ended March 31, 2001 $24.82 (0.22) (4.18) (4.40) Year Ended March 31, 2000 $14.60 (0.24) 10.46 10.22 Year Ended March 31, 1999 $17.80 (0.15) (3.05) (3.20) Year Ended March 31, 1998 $15.04 (0.23) 5.60 5.37 Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $18.46 (0.06) (0.73) (0.79) Year Ended March 31, 2001 $25.92 (0.10) (4.40) (4.50) Year Ended March 31, 2000 $15.17 (0.15) 10.90 10.75 Year Ended March 31, 1999 $18.40 (0.08) (3.15) (3.23) Year Ended March 31, 1998 $15.55 (0.15) 5.79 5.64 Mid Cap Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $13.45 (0.08) (2.21) (2.29) Year Ended March 31, 2001 $24.68 (0.20) (6.54) (6.74) Year Ended March 31, 2000 $15.46 (0.19) 10.74 10.55 Year Ended March 31, 1999 $16.05 (0.11) (0.09) (0.20) Year Ended March 31, 1998 $13.44 (0.08) 6.06 5.98 Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $13.86 (0.07) (2.27) (2.34) Year Ended March 31, 2001 $25.21 (0.14) (6.72) (6.86) Year Ended March 31, 2000 $15.65 (0.19) 11.08 10.89 Year Ended March 31, 1999 $16.24 (0.10) (0.10) (0.20) Year Ended March 31, 1998 $13.55 (0.06) 6.12 6.06 Growth and Income Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $13.95 (0.07) (1.91) (1.98) Year Ended March 31, 2001 $25.88 (0.22) (8.34) (8.56) Year Ended March 31, 2000 $21.26 (0.25) 10.21 9.96 Year Ended March 31, 1999 $20.85 (0.08) 2.82 2.74 Year Ended March 31, 1998 $15.22 0.00 7.61 7.61 Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $14.25 (0.03) (1.96) (1.99) Year Ended March 31, 2001 $26.22 (0.12) (8.48) (8.60) Year Ended March 31, 2000 $21.37 (0.14) 10.33 10.19 Year Ended March 31, 1999 $20.84 0.03 2.83 2.86 Year Ended March 31, 1998 $15.24 0.10 7.60 7.70 International Equity Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $ 7.57 (0.02) (1.45) (1.47) Year Ended March 31, 2001 $12.00 (0.04) (3.55) (3.59) Year Ended March 31, 2000 $11.37 (0.04) 1.50 1.46 Year Ended March 31, 1999 $11.97 0.01 (0.58) (0.57) Year Ended March 31, 1998 $11.03 0.07 1.30 1.37 -------------- Distributions -------------- Dividends Distributions from Net from Net Asset Investment Realized Total Value End Total Income Capital Gains Distributions of Period Return(d) Small Cap Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $16.67 (4.52)% Year Ended March 31, 2001 -- (2.96)(g) (2.96) $17.46 (18.49)% Year Ended March 31, 2000 -- -- -- $24.82 70.00% Year Ended March 31, 1999 -- -- -- $14.60 (17.98)% Year Ended March 31, 1998 (0.16) (2.45)(h) (2.61) $17.80 37.79% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $17.67 (4.28)% Year Ended March 31, 2001 -- (2.96)(g) (2.96) $18.46 (18.07)% Year Ended March 31, 2000 -- -- -- $25.92 70.86% Year Ended March 31, 1999 -- -- -- $15.17 (17.55)% Year Ended March 31, 1998 (0.34) (2.45)(h) (2.79) $18.40 38.44% Mid Cap Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $11.16 (17.03)% Year Ended March 31, 2001 -- (4.49)(i) (4.49) $13.45 (29.51)% Year Ended March 31, 2000 -- (1.33) (1.33) $24.68 71.41% Year Ended March 31, 1999 -- (0.39) (0.39) $15.46 (1.08)% Year Ended March 31, 1998 -- (3.37) (3.37) $16.05 46.76% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $11.52 (16.88)% Year Ended March 31, 2001 -- (4.49)(i) (4.49) $13.86 (29.35)% Year Ended March 31, 2000 -- (1.33) (1.33) $25.21 72.81% Year Ended March 31, 1999 -- (0.39) (0.39) $15.65 (1.07)% Year Ended March 31, 1998 -- (3.37) (3.37) $16.24 47.01% Growth and Income Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $11.97 (14.19)% Year Ended March 31, 2001 -- (3.37) (3.37) $13.95 (35.20)% Year Ended March 31, 2000 -- (5.34) (5.34) $25.88 51.46% Year Ended March 31, 1999 -- (2.33) (2.33) $21.26 13.67% Year Ended March 31, 1998 (0.05) (1.93) (1.98) $20.85 51.52% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $12.26 (13.97)% Year Ended March 31, 2001 -- (3.37) (3.37) $14.25 (34.89)% Year Ended March 31, 2000 -- (5.34) (5.34) $26.22 52.32% Year Ended March 31, 1999 -- (2.33) (2.33) $21.37 14.27% Year Ended March 31, 1998 (0.17) (1.93) (2.10) $20.84 52.18% International Equity Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $ 6.10 (19.42)% Year Ended March 31, 2001 (0.09)(j) (0.75)(k) (0.84) $ 7.57 (30.96)% Year Ended March 31, 2000 (0.34)(j) (0.49) (0.83) $12.00 12.93% Year Ended March 31, 1999 (0.03)(j) -- (0.03) $11.37 (4.78)% Year Ended March 31, 1998 (0.17)(j) (0.26)(l) (0.43) $11.97 12.95% ---------------- Ratios and Supplemental Data ---------------- Ratio of Expenses to Average ------- Net Assets(e)(f) ------- Net Assets Net Investment End of Including Income (Loss) Period Excluding Custody to Average Net Portfolio (000's) Credits Gross Credits Assets(c)(e) Turnover(e) Small Cap Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $57,757 1.97% 1.97% 1.97% (1.09)% 74.00% Year Ended March 31, 2001 $60,320 1.92% 1.92% 1.92% (0.98)% 76.00% Year Ended March 31, 2000 $74,289 1.97% 1.97% 1.96% (1.30)% 145.00% Year Ended March 31, 1999 $47,605 1.94% 1.94% 1.94% (0.99)% 113.00% Year Ended March 31, 1998 $66,876 1.90% 1.96% 1.89% (1.33)% 135.00% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $ 8,897 1.47% 1.47% 1.47% (0.59)% 74.00% Year Ended March 31, 2001 $ 8,257 1.42% 1.42% 1.42% (0.44)% 76.00% Year Ended March 31, 2000 $ 6,501 1.47% 1.47% 1.46% (0.80)% 145.00% Year Ended March 31, 1999 $ 4,680 1.44% 1.44% 1.44% (0.49)% 113.00% Year Ended March 31, 1998 $ 6,286 1.41% 1.47% 1.40% (0.86)% 135.00% Mid Cap Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $12,104 1.90% 1.90% 1.90% (1.20)% 80.00% Year Ended March 31, 2001 $15,214 1.79% 1.83% 1.79% (1.02)% 75.00% Year Ended March 31, 2000 $19,921 1.67% 1.92% 1.67% (1.03)% 153.00% Year Ended March 31, 1999 $12,617 1.65% 1.87% 1.65% (0.72)% 168.00% Year Ended March 31, 1998 $15,484 1.57% 1.97% 1.57% (0.52)% 128.00% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $ 1,367 1.65% 1.65% 1.65% (0.95)% 80.00% Year Ended March 31, 2001 $ 1,660 1.58% 1.58% 1.58% (0.76)% 75.00% Year Ended March 31, 2000 $ 986 1.67% 1.67% 1.67% (1.04)% 153.00% Year Ended March 31, 1999 $ 557 1.62% 1.62% 1.62% (0.69)% 168.00% Year Ended March 31, 1998 $ 823 1.40% 1.72% 1.40% (0.35)% 128.00% Growth and Income Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $50,597 1.72% 1.72% 1.65% (0.92)% 5.00% Year Ended March 31, 2001 $60,587 1.66% 1.66% 1.64% (1.05)% 64.00% Year Ended March 31, 2000 $96,477 1.70% 1.70% 1.66% (1.08)% 78.00% Year Ended March 31, 1999 $70,874 1.67% 1.67% 1.62% (0.36)% 97.00% Year Ended March 31, 1998 $66,397 1.69% 1.69% 1.65% (0.01)% 72.00% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $ 1,253 1.22% 1.22% 1.15% (0.42)% 5.00% Year Ended March 31, 2001 $ 1,517 1.16% 1.16% 1.14% (0.56)% 64.00% Year Ended March 31, 2000 $ 2,354 1.20% 1.20% 1.16% (0.60)% 78.00% Year Ended March 31, 1999 $ 4,607 1.17% 1.17% 1.12% 0.14% 97.00% Year Ended March 31, 1998 $ 3,724 1.19% 1.19% 1.14% 0.50% 72.00% International Equity Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $ 9,643 2.20% 2.33% 2.14% (0.41)% 41.00% Year Ended March 31, 2001 $13,212 2.19% 2.25% 2.08% (0.40)% 108.00% Year Ended March 31, 2000 $19,491 2.18% 2.30% 2.13% (0.35)% 78.00% Year Ended March 31, 1999 $21,956 2.11% 2.11% 2.08% 0.12% 128.00% Year Ended March 31, 1998 $32,182 2.18% 2.18% 2.03% 0.62% 61.00%
The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 17 FINANCIAL HIGHLIGHTS--Continued (For a share outstanding throughout each period)
Income from -------- Investment Operations(a) -------- Net Asset Net Net Realized Value at Investment and Unrealized Total from Beginning Income Gain (Loss) Investment of Period (Loss)(b)(c) on Securities Operations International Equity--Continued Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $ 7.59 0.00 (1.47) (1.47) Year Ended March 31, 2001 $12.00 0.01 (3.54) (3.53) Year Ended March 31, 2000 $11.39 0.02 1.49 1.51 Year Ended March 31, 1999 $11.95 0.06 (0.58) (0.52) Year Ended March 31, 1998 $11.10 0.14 1.28 1.42 Emerging Markets Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $ 6.57 0.04 (0.99) (0.95) Year Ended March 31, 2001 $ 9.39 0.05 (2.87) (2.82) Year Ended March 31, 2000 $ 6.59 (0.01) 2.83 2.82 Year Ended March 31, 1999 $ 7.70 0.07 (1.11) (1.04) Year Ended March 31, 1998 $ 9.24 (0.04) (1.50) (1.54) Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $ 6.62 0.06 (1.00) (0.94) Year Ended March 31, 2001 $ 9.48 0.09 (2.91) (2.82) Year Ended March 31, 2000 $ 6.64 0.04 2.85 2.89 Year Ended March 31, 1999 $ 7.76 0.09 (1.11) (1.02) Year Ended March 31, 1998 $ 9.27 0.02 (1.53) (1.51) Foreign Value Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $ 8.66 0.06 (1.45) (1.39) Year Ended March 31, 2001 $ 9.05 0.10 (0.49) (0.39) Year Ended March 31, 2000 $ 8.36 0.04 0.97 1.01 May 15, 1998* to March 31, 1999 $10.00 0.02 (1.64) (1.62) Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $ 8.68 0.07 (1.45) (1.38) Year Ended March 31, 2001 $ 9.06 0.14 (0.52) (0.38) Year Ended March 31, 2000 $ 8.37 0.12 0.91 1.03 December 18, 1998* to March 31, 1999 $ 8.43 0.06 (0.12) (0.06) -------------- Distributions --------------- Dividends Distributions from Net from Net Asset Investment Realized Total Value End Total Income Capital Gains Distributions of Period Return(d) International Equity--Continued Institutional Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $ 6.12 (19.37)% Year Ended March 31, 2001 (0.13)(j) (0.75)(k) (0.88) $ 7.59 (30.54)% Year Ended March 31, 2000 (0.41)(j) (0.49) (0.90) $12.00 13.33% Year Ended March 31, 1999 (0.04)(j) -- (0.04) $11.39 (4.34)% Year Ended March 31, 1998 (0.31)(j) (0.26)(l) (0.57) $11.95 13.50% Emerging Markets Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $ 5.62 (14.46)% Year Ended March 31, 2001 -- -- -- $ 6.57 (30.03)% Year Ended March 31, 2000 (0.02)(m) -- (0.02) $ 9.39 42.73% Year Ended March 31, 1999 (0.07)(n) -- (0.07) $ 6.59 (13.40)% Year Ended March 31, 1998 -- -- -- $ 7.70 (16.67)% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $ 5.68 (14.20)% Year Ended March 31, 2001 (0.04) -- (0.04) $ 6.62 (29.70)% Year Ended March 31, 2000 (0.05)(m) -- (0.05) $ 9.48 43.55% Year Ended March 31, 1999 (0.10)(n) -- (0.10) $ 6.64 (12.93)% Year Ended March 31, 1998 -- -- -- $ 7.76 (16.29)% Foreign Value Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $ 7.27 (16.05)% Year Ended March 31, 2001 0.00 -- 0.00 $ 8.66 (4.30)% Year Ended March 31, 2000 (0.32)(o) -- (0.32) $ 9.05 12.17% May 15, 1998* to March 31, 1999 (0.02)(o) -- (0.02) $ 8.36 (16.16)% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) -- -- -- $ 7.30 (15.90)% Year Ended March 31, 2001 (0.00) -- (0.00) $ 8.68 (4.18)% Year Ended March 31, 2000 (0.34)(o) -- (0.34) $ 9.06 12.37% December 18, 1998* to March 31, 1999 -- -- -- $ 8.37 (0.71)% ---------------- Ratios and Supplemental Data ----------------- Ratio of Expenses to Average ------- Net Assets(e)(f) ------- Net Assets Net Investment End of Including Income (Loss) Period Excluding Custody to Average Net Portfolio (000's) Credits Gross Credits Assets(c)(e) Turnover(e) International Equity--Continued Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $ 73 1.70% 1.83% 1.64% 0.05% 41.00% Year Ended March 31, 2001 $ 90 1.69% 1.75% 1.58% 0.07% 108.00% Year Ended March 31, 2000 $ 172 1.68% 1.80% 1.63% 0.14% 78.00% Year Ended March 31, 1999 $ 1,895 1.61% 1.61% 1.58% 0.62% 128.00% Year Ended March 31, 1998 $ 1,728 1.68% 1.69% 1.54% 1.19% 61.00% Emerging Markets Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $ 8,360 2.32% 2.32% 2.32% 1.28% 61.00% Year Ended March 31, 2001 $ 9,598 2.30% 2.30% 2.30% 0.62% 42.00% Year Ended March 31, 2000 $12,767 2.33% 2.33% 2.33% (0.07)% 31.00% Year Ended March 31, 1999 $ 8,442 2.32% 2.58% 2.24% 1.03% 49.00% Year Ended March 31, 1998 $ 9,241 2.69% 2.69% 2.57% (0.43)% 52.00% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $ 1,559 1.82% 1.82% 1.82% 1.78% 61.00% Year Ended March 31, 2001 $ 1,935 1.80% 1.80% 1.80% 1.10% 42.00% Year Ended March 31, 2000 $ 2,796 1.83% 1.83% 1.83% 0.52% 31.00% Year Ended March 31, 1999 $ 1,447 1.82% 2.08% 1.74% 1.36% 49.00% Year Ended March 31, 1998 $ 1,002 2.19% 2.19% 2.07% 0.24% 52.00% Foreign Value Ordinary Shares Six Months Ended September 30, 2001 (Unaudited) $15,073 2.00% 2.00% 2.00% 1.37% 14.00% Year Ended March 31, 2001 $14,410 1.96% 1.97% 1.96% 1.12% 45.00% Year Ended March 31, 2000 $13,595 1.90% 2.06% 1.90% 0.40% 30.00% May 15, 1998* to March 31, 1999 $ 7,478 1.99% 2.13% 1.90% 0.19% 22.00% Institutional Shares Six Months Ended September 30, 2001 (Unaudited) $ 525 1.74% 1.74% 1.74% 1.65% 14.00% Year Ended March 31, 2001 $ 616 1.71% 1.72% 1.71% 1.53% 45.00% Year Ended March 31, 2000 $ 1,204 1.61% 1.77% 1.61% 1.67% 30.00% December 18, 1998* to March 31, 1999 $ 401 1.72% 1.86% 1.70% 0.75% 22.00%
* Commencement of Operations (a) Per share numbers have been calculated using the average shares method. (b) Reflects expense waivers/reimbursements and reductions in effect during the period. See Note 3 to the Financial Statements. (c) Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets reflect net investment income prior to certain reclassifications for federal income or excise taxes. (d) Total Return does not include the one time deferred sales charge of 1% for the Ordinary Shares. Effective August 1, 1996 Mid Cap Ordinary Shares are no longer subject to the deferred sales charge of 1%. The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. See Note 3 to the financial statements. (e) Periods less than one year are annualized. (f) Ratio of expenses to average net assets shows: Excluding Credits (total expenses less fees waivers and reimbursements by the investment advisor, if any). Gross (total expenses not taking into account fee waivers and reimbursements by the investment advisor or custody earnings credits, if any). Including Credits (expenses less fee waivers and reimbursements by the investment advisor and reduced by custody earnings credits, if any). (g) Distributions from realized capital gains include distributions in excess of realized capital gains of $0.35 per share. (h) Distributions from realized capital gains include distributions in excess of realized capital gains of $0.03 per share. (i) Distributions from realized capital gains include distributions in excess of realized capital gains of $0.38 per share. (j) Distributions from net investment income includes distributions in excess of current net income of $0.09, $0.34, $0.01 and $0.06 per share for Ordinary Shares, and $0.13, $0.41, $0.01 and $0.11 per share for Institutional Shares during the fiscal years ended March 31, 2001, 2000, 1999 and 1998, respectively. (k) Distributions from realized capital gains include distributions in excess of realized capital gains of $0.27 per share. (l) Distributions from realized capital gains include distributions in excess of realized capital gains of $0.05 per share. (m) Distributions from net investment income includes distributions in excess of current net investment income of $0.02 per share for Ordinary Shares and $0.05 per share for Institutional Shares. (n) Distributions from net investment income includes a return of capital of $0.02 per share for Ordinary Shares and $0.03 per share for Institutional Shares. (o) Distribution from net investment income includes distributions in excess of current net investment income of $0.02 and $0.01 for Ordinary Shares, and $0.02 and $ (-) for Institutional Shares for the years ended March 31, 2000 and 1999, respectively. The accompanying notes are an integral part of these financial statements. -------------------------------------------------------------------------------- 18 QUANT FUNDS --------------------------------------------------------------------------[LOGO] NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. Organization of the Trust. The Quantitative Group of Funds (the "Trust") is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. The Trust currently has six series (individually a "Fund" and collectively the "Funds") each with a distinct investment objective: Quant Small Cap, Quant Mid Cap, Quant Growth and Income, Quant International Equity, Quant Emerging Markets, and Quant Foreign Value. The Quant Small Cap Fund ("Small Cap") seeks maximum long-term capital appreciation by investing primarily in common stocks of companies with smaller market capitalizations or larger companies with higher than average expected earnings growth rates. The Quant Mid Cap Fund ("Mid Cap") seeks long-term growth of capital by investing primarily in common stock of companies with medium market capitalizations. The Quant Growth and Income Fund ("Growth and Income") seeks long-term growth of capital and income by investing primarily in common stocks of larger companies having substantial equity capital that are currently paying dividends. The Quant International Equity Fund ("International Equity") seeks long-term capital growth and income by investing primarily in foreign securities. Generally, the Fund invests in Western Europe, Australia, and the larger capital markets in the Far East. The Quant Emerging Markets Fund ("Emerging Markets") seeks long-term growth of capital by investing in securities of foreign issuers located in emerging markets. The Quant Foreign Value Fund ("Foreign Value") seeks long-term capital growth and income by investing in a diversified portfolio consisting primarily of foreign securities. Generally, the Fund invests in Western Europe, Australia, and the larger capital markets in the Far East. The Fund may also invest in emerging markets. 2. Significant Accounting Policies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with generally accepted accounting principles for investment companies, which require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates. Security Valuation. Portfolio securities are valued each business day at the last reported sale price up to 4:00 p.m. on the principal exchange or market on which they are traded. If there is no such reported sale, the securities generally are valued at the mean between the last reported bid and asked prices. For certain securities, where no such sales have been reported, the Fund may value such securities at the last reported bid price. In the event that there is information suggesting that valuation of such securities based upon bid and/or asked prices may not be accurate, a fund may value such securities in good faith at fair value in accordance with procedures established by the Funds' Trustees (the "Trustees"), which may include a determination to value such securities at the last reported sales price. Short-term investments that mature in 60 days or less are valued at amortized cost. Securities quoted in foreign currencies are translated into U.S. dollars based upon the prevailing exchange rate on each business day. Other assets and securities for which no quotations are readily available are valued at fair value as determined in good faith using procedures approved by the Trustees. Security Transactions and Related Investment Income. Security transactions are accounted for on the trade date (the date the order to buy or sell is executed). Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon as the Funds are informed of the ex-dividend date. Interest income is recorded on the accrual basis. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis. Each Fund's investment income and realized and unrealized gains and losses are allocated among classes based upon the daily relative net assets. Repurchase Agreements. The Funds' custodian takes possession through the federal book-entry system of securities collateralizing repurchase agreements. Collateral is marked-to-market daily to ensure that the market value of the underlying assets remains sufficient to protect the Funds. The Funds may experience costs and delays in liquidating the collateral if the issuer defaults or enters into bankruptcy. Foreign Currency Transactions. All monetary items denominated in foreign currencies are translated into U.S. dollars based on the prevailing exchange rate at the close of each business day. Income and expenses denominated in foreign currencies are translated at the prevailing rates of exchange when accrued or incurred. Reported net realized gains and losses on foreign currency transactions represent net gains and losses from currency gains and losses realized between the trade and settlement dates on investment transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually -------------------------------------------------------------------------------- 19 QUANT FUNDS [LOGO]-------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued received. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statement of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments. Expenses. The majority of the expenses of the Funds are attributed to the individual Funds for which they are incurred. Expenses that are not attributed to a specific Fund are allocated in proportion to the respective net assets of the Funds. Expenses allocable to a Fund are borne pro rata by the holders of both classes of shares of such Fund, except that 12b-1 Plan expenses will not be borne by the holders of Institutional Shares and each class has its own transfer agency fee. 3. Management Fee, Advisory Contracts and Other Affiliate Transactions. The Funds have entered into a Management Agreement with Quantitative Investment Advisors, Inc. (the "Manager"). Compensation of the Manager, for management and administration of the Funds, including selection and monitoring of the portfolio advisors, is paid monthly based on the average daily net asset value of each Fund for the month. The annual rate of such fees is 1.00% of the average daily net asset value of Small Cap, Mid Cap, International Equity and Foreign Value; 0.75% of the average daily net asset value of the Growth and Income Fund; and 0.80% of the average daily net asset value of Emerging Markets. Under the Management Agreement, the Manager has agreed to reduce its compensation, and if necessary, assume expenses, with respect to Small Cap, Growth and Income, and International Equity to the extent that the total expenses of any of these Funds individually exceed 2% of average net asset value for any fiscal year. The Distribution Agreement calls for the distributor, U.S. Boston Capital Corporation (the "Distributor") to reduce its fee similarly after the Manager's fee has been eliminated. The Manager has also voluntarily agreed to waive fees or assume certain operating expenses of Emerging Markets in order to reduce the total expenses of this Fund to no more than 2.25% of its average net assets. Fund expenses subject to this limitation are exclusive of brokerage, interest, taxes and extraordinary expenses, which include incremental custody costs associated with international securities. Expenses are calculated gross of custody credits, if applicable. For the six months ended September 30, 2001, the fees waived or expenses reimbursed by the Manager amounted to $8,173 for International Equity. The aggregate management fees, net of fees waived or reimbursed by the Manager amounted to $874,872. The Manager has entered into advisory contracts with the following sub advisors (collectively the "Advisors") to provide investment advisory services to the following Funds: Columbia Partners, L.L.C., Investment Management (Small Cap, Mid Cap), SSgA Funds Management, Inc. (Growth and Income, International Equity), Independence Investment LLC. (Emerging Markets), and Polaris Capital Management, Inc. (Foreign Value). For services rendered, the Manager pays to the Advisor of a Fund a fee generally based on a percentage of the average daily net asset value of the Fund. The fee for each Fund is determined separately. The fees paid by the Manager to the Advisors of the Funds are as follows: Small Cap--0.50% of average daily total net assets; Mid Cap and Emerging Markets--0.40% of average daily total net assets; Growth and Income--0.375% of the first $20 million and 0.30% of amounts in excess of $20 million of average daily total net assets, with an annual minimum of $25,000; International Equity--0.50% of the first $30 million, 0.40% of amounts in excess of $30 million but less than $100 million and 0.35% of amounts in excess of $100 million of average daily total net assets, with an annual minimum of $75,000; and Foreign Value--0.35% of the first $35 million, 0.40% of amounts in excess of $35 million but less than $200 million and 0.50% for assets in excess of $200 million of average daily total net assets. The Funds have entered into a Distribution Agreement with the Distributor. For its services under the Distribution Agreement, the Distributor receives a monthly fee at the annual rate of (i) 0.50% of the average net asset value of Ordinary Shareholder accounts of Small Cap, Growth and Income, International Equity and Emerging Markets and (ii) 0.25% of the average net asset value of Ordinary Shareholder accounts of Mid Cap and Foreign Value open during the period the plan is in effect. Prior to August 1, 1996, the annual rate for Mid Cap accounts was 0.50%. Holders of Institutional Shares bear no portion of the 12b-1 Plan expenses of the Funds and are not entitled to vote on matters involving the 12b-1 Plan. During the six months ended September 30, 2001, the aggregate fees paid by the Funds pursuant to such Distribution Agreement, net of fees waived by the Distributor, amounted to $409,907. A deferred sales charge amounting to 1% of the net asset value of Ordinary Shares redeemed of Small Cap, Growth and Income, International Equity, Emerging Markets and Foreign Value is withheld from the redemption proceeds and paid to the Distributor. The deferred sales charge is also imposed on redemptions of Ordinary Shares of Mid Cap purchased prior to August 1, 1996. The deferred sales charge is not imposed on redemptions of Institutional Shares and certain other transactions. The Funds have been advised that during the six months ended September 30, 2001, such fees earned by the Distributor were $68,948. -------------------------------------------------------------------------------- 20 QUANT FUNDS --------------------------------------------------------------------------[LOGO] NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued Transfer agent functions are provided to the Funds by Quantitative Institutional Services, a division of the Manager (the "Transfer Agent") pursuant to a Transfer Agent Agreement. The Agreement provides for base fees that are payable to the Transfer Agent at an annual rate of 0.16% of the aggregate average daily net asset value of each class of shares of each Fund and for reimbursement of out of pocket expenses. During the six months ended September 30, 2001, the aggregate fees, paid by the Funds pursuant to such agreements amounted to $161,768. The Transfer Agent also provides the Fund with other services consisting of in-house legal services, preparation and review of semi-annual and annual reports and EDGAR administration services. These services are provided as additional services agreed to by the Trustees under the provisions of the Transfer Agent and Services Agreement. During the six months ended September 30, 2001, the aggregate fees paid by the Funds pursuant to such agreement amounted to $56,700. Custody and fund accounting services are provided by State Street Kansas City. Custody credits generated by interest earned on uninvested cash balances maintained by the Funds are used to offset custodial expenses of the Funds. Each Trustee receives an annual Trustee's fee of $4,000 allocated to each Fund in proportion to the respective net assets of the Funds. 4. Federal Income Taxes. It is the policy of the Funds to distribute all of their taxable income within the prescribed time and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Therefore, no Federal income tax provision is required. At March 31, 2001 International Equity had a capital loss carry-over amounting to $146,743 which will expire on March 31, 2009. Emerging Markets had a capital loss carry-over amounting to $1,350,118 which will expire on March 31, 2007. Foreign Value had a capital loss carry-over amounting to $318,752 of which $241,046 will expire on March 31, 2007 and $77,706 will expire on March 31, 2008. Small Cap, Mid Cap, International Equity, Emerging Markets and Foreign Value also had post October loss deferrals amounting to $649,935, $482,585, $437,264, $214,075 and $812,089, respectively. International Equity, Emerging Markets and Foreign Value had post October currency loss deferrals amounting to $13,960, $7,608 and $2,771, respectively. To the extent that these losses are used to offset any future capital gains realized during the carryover period, no capital gains tax liabilities will be incurred by the Funds for gains realized and not distributed. 5. Purchases and Sales. During the six months ended September 30, 2001, purchases of investment securities other than U.S. Government obligations and short-term investments, for Small Cap, Mid Cap, Growth and Income, International Equity, Emerging Markets and Foreign Value were $28,562,594, $8,236,228, $5,748,401, $2,527,769, $3,540,250 and $3,476,178, respectively. Sales of such securities for the Funds were $25,531,066, $6,216,301, $1,508,643, $3,324,632, $3,250,532, and $993,660, respectively. 6. Securities Loans. As of September 30, 2001, International Equity loaned common stocks having a value of $908,570. For such loans the Fund received cash collateral which was invested in short term instruments with a market value of $751,613 and a letter of credit from Morgan Stanley Dean Witter with a value of $179,900. The loans are collateralized at all times with cash, securities or letters of credit with a market value at least equal to the market value of the securities on loan. Security lending income of $3,976 collected by State Street was recorded in interest income on the Statement of Operations. 7. Contingent Liability. The Trust insures itself and all Funds under a policy with ICI Mutual Insurance Company. The annual premium is allocated among the Funds and the Transfer Agent. Additionally, the Funds have committed up to 300% of the annual premium, one third of which was provided in cash, with each Fund's pro rata portion recorded as an asset. The remainder is secured with an irrevocable letter of credit. 8. Shares of Beneficial Interest. The following schedule shows the number of shareholders each owning 5% or more of a class of shares of a Fund and the total percentage of the class held by such shareholders. 5% or Greater Shareholders --------------------------- Fund Number % of class Held Small Cap Inst. 7 75% Mid Cap Ord. 1 7% Mid Cap Inst. 4 82% Growth and Income Inst. 4 72% International Equity Inst. 3 100% Emerging Markets Inst. 2 98% Foreign Value Ord. 1 5% Foreign Value Inst. 4 100% -------------------------------------------------------------------------------- 21 QUANT FUNDS [LOGO]-------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued 9. Concentration of Risk. The relatively large investments of Emerging Markets in Latin American and Southeast Asian countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and the income they generate, as well as the Fund's ability to repatriate such amounts. -------------------------------------------------------------------------------- 22 QUANT FUNDS --------------------------------------------------------------------------[LOGO] NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued 10. Transactions in Shares of Beneficial Interest. Transactions in shares of beneficial interest were as follows:
Six Months Ended Year Ended September 30, 2001 March 31, 2001 ------------------------------- ------------------------------ Shares Dollars Shares Dollars Small Cap Ordinary Shares: Shares sold 162,331 $ 3,003,892 211,498 $ 4,456,197 Shares issued in reinvestment of distributions -- -- 449,046 8,379,192 Shares redeemed (152,288) (2,873,596) (199,364) (4,276,299) -------- ----------- -------- ----------- Net change 10,043 130,296 461,180 8,559,090 ======== ----------- ======== ----------- Institutional Shares: Shares sold 59,052 1,209,891 177,342 3,627,710 Shares issued in reinvestment of distributions -- -- 35,893 707,098 Shares redeemed (2,838) (53,814) (16,786) (362,379) -------- ----------- -------- ----------- Net change 56,214 1,156,077 196,449 3,972,429 ======== ----------- ======== ----------- Total net change for fund $ 1,286,373 $12,531,519 =========== =========== Mid Cap Ordinary Shares: Shares sold 48,819 $ 663,357 202,210 $ 3,899,386 Shares issued in reinvestment of distributions -- -- 240,347 3,674,899 Shares redeemed (95,596) (1,252,166) (118,753) (2,343,640) -------- ----------- -------- ----------- Net change (46,777) (588,809) 323,804 5,230,645 ======== ----------- ======== ----------- Institutional Shares: Shares sold 1,382 18,397 70,247 1,213,628 Shares issued in reinvestment of distributions -- -- 12,005 188,963 Shares redeemed (2,448) (34,410) (1,579) (34,594) -------- ----------- -------- ----------- Net change (1,066) (16,013) 80,673 1,367,997 ======== ----------- ======== ----------- Total net change for fund $ (604,822) $ 6,598,642 =========== =========== Growth and Income Ordinary Shares: Shares sold 195,555 $ 2,720,089 330,164 $ 6,642,876 Shares issued in reinvestment of distributions -- -- 651,232 10,862,548 Shares redeemed (314,550) (4,406,913) (364,122) (7,523,400) -------- ----------- -------- ----------- Net change (118,995) (1,686,824) 617,274 9,982,024 ======== ----------- ======== ----------- Institutional Shares: Shares sold 1,813 25,497 77,482 1,919,410 Shares issued in reinvestment of distributions -- -- 20,402 347,245 Shares redeemed (6,131) (86,459) (81,215) (1,884,054) -------- ----------- -------- ----------- Net change (4,318) (60,962) 16,669 382,601 ======== ----------- ======== ----------- Total net change for fund $(1,747,786) $10,364,625 =========== ===========
-------------------------------------------------------------------------------- 23 QUANT FUNDS [LOGO]-------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued
Six Months Ended Year Ended September 30, 2001 March 31, 2001 ------------------------------- ------------------------------ Shares Dollars Shares Dollars International Equity Ordinary Shares: Shares sold 50,432 $ 365,043 190,058 $ 1,886,728 Shares issued in reinvestment of distributions -- -- 131,456 1,175,215 Shares redeemed (214,354) (1,514,813) (201,034) (2,147,269) -------- ----------- -------- ----------- Net change (163,922) (1,149,770) 120,480 914,674 ======== ----------- ======== ----------- Institutional Shares: Shares sold 43,243 336,000 544 5,540 Shares issued in reinvestment of distributions -- -- 1,444 12,906 Shares redeemed (43,229) (332,663) (4,406) (36,391) -------- ----------- -------- ----------- Net change 14 3,337 (2,418) (17,945) ======== ----------- ======== ----------- Total net change for fund $(1,146,433) $ 896,729 =========== =========== Emerging Markets Ordinary Shares: Shares sold 61,828 $ 408,388 173,241 $ 1,288,046 Shares issued in reinvestment of distributions -- -- -- -- Shares redeemed (35,725) (231,180) (72,421) (560,674) -------- ----------- -------- ----------- Net change 26,103 177,208 100,820 727,372 ======== ----------- ======== ----------- Institutional Shares: Shares sold 257 1,679 1,196 8,749 Shares issued in reinvestment of distributions -- -- 354 2,329 Shares redeemed (18,036) (116,280) (4,285) (37,912) -------- ----------- -------- ----------- Net change (17,779) (114,601) (2,735) (26,834) ======== ----------- ======== ----------- Total net change for fund $ 62,607 $ 700,538 =========== =========== Foreign Value Ordinary Shares: Shares sold 425,104 $ 3,565,240 348,665 $ 3,175,479 Shares issued in reinvestment of distributions -- -- 141 1,185 Shares redeemed (15,334) (138,066) (185,900) (1,624,978) -------- ----------- -------- ----------- Net change 409,770 3,427,174 162,906 1,551,686 ======== ----------- ======== ----------- Institutional Shares: Shares sold 1,627 11,994 2,750 23,473 Shares issued in reinvestment of distributions -- -- 8 71 Shares redeemed (645) (6,000) (64,704) (578,674) -------- ----------- -------- ----------- Net change 982 5,994 (61,946) (555,130) ======== ----------- ======== ----------- Total net change for fund $ 3,433,168 $ 996,556 =========== ===========
11. Subsequent Events. On October 10, 2001, the Trustees voted to terminate International Equity by November 30, 2001. -------------------------------------------------------------------------------- 24 QUANT FUNDS 55 Old Bedford Road Lincoln, MA 01773 1-800-326-2151 www.QuantFunds.com Manager Quantitative Advisors 55 Old Bedford Road Lincoln, MA 01773 Advisors Independence Investment LLC Columbia Partners, LLC, Investment Management 53 State Street 1775 Pennsylvania Avenue, N.W. Boston, MA 02109 Washington, D.C. 20006 Polaris Capital Management, Inc. SSgA Funds Management, Inc. 125 Summer Street One International Place Boston, MA 02110 Boston, MA 02110 Distributor U.S. Boston Capital Corporation 55 Old Bedford Road Lincoln, MA 01773 Custodian State Street Kansas City 801 Pennsylvania Avenue Kansas City, MO 64105 Transfer Agent Quantitative Advisors 55 Old Bedford Road Lincoln, MA 01773 Independent Accountants PricewaterhouseCoopers LLP 1055 Broadway, 10th Floor Kansas City, MO 64105 [LOGO] QUANT FUNDS 55 Old Bedford Road Lincoln, MA 01773 voice 800-326-2151 fax 781-259-1166 www.QuantFunds.com Distributed by U.S. Boston Capital Corp. Member NASD, SIPC.