-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q9nzgmN4r5kb592rSgb2BOFpb35UjENT5Ji3aAHRV9qBd/cYoxHulihC0zjlf0rS K5Pfv3gGSUF1shEsHjkukQ== 0000935069-02-001186.txt : 20021104 0000935069-02-001186.hdr.sgml : 20021104 20021104123000 ACCESSION NUMBER: 0000935069-02-001186 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020831 FILED AS OF DATE: 20021104 EFFECTIVENESS DATE: 20021104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RBB FUND INC CENTRAL INDEX KEY: 0000831114 IRS NUMBER: 510312197 STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05518 FILM NUMBER: 02807764 BUSINESS ADDRESS: STREET 1: 400 BELLEVUE PKWY STE 100 CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 3027911700 MAIL ADDRESS: STREET 1: 400 BELLEVUE PKWY STREET 2: SUITE 152 CITY: WILMINGTON STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: FUND INC /DE/ DATE OF NAME CHANGE: 19600201 N-30D 1 g02-0905_numeric.txt NUMERIC INVESTORS AR 2002 [LOGO OMITTED] n/i numeric investors family of funds [LOGO OMITTED] n/i numeric investors Emerging Growth Fund [LOGO OMITTED] n/i numeric investors Growth Fund [LOGO OMITTED] n/i numeric investors Mid Cap Fund [LOGO OMITTED] n/i numeric investors Small Cap Value Fund Annual Report August 31, 2002 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND ADVISER'S REPORT October 25, 2002 Dear Shareholder: As your Funds' adviser, Numeric Investors L.P.(R) is pleased to report the annual results for the N/I NUMERIC INVESTORS FAMILY OF FUNDS (the "Funds") for the fiscal year ended August 31, 2002. Before we begin our discussion of returns and market conditions, we remind you that one of our funds, the n/i Micro Cap Fund, changed its name to the n/i Emerging Growth Fund at the end of July. This was done to comply with a recent SEC directive that requires that a fund's name precisely describe its investment objective. The Micro Cap Fund changed its name to permit the Fund to continue to also invest in SMALL CAP growth stocks that are larger than "microcap." This name change allows the Fund to continue to pursue the same investment strategy that it has since inception, and to benchmark itself against the Russell 2000 Growth Index. Nothing has changed but the name of the Fund. SUCCESS OF OUR FUNDS The second six months of our funds' fiscal year, extending from March 1, 2002 through August 31, 2002, saw a continuation of the bear market in U.S. equities that began more than two years ago. All four of our funds were able to produce better returns than their benchmarks over this six-month period, but the severely declining markets prevented any of the funds from producing positive ABSOLUTE returns. The table below compares our funds' returns with the returns of their benchmarks over several periods of interest. TOTAL RETURNS
AVERAGE SIX MONTHS SIX MONTHS ONE YEAR FIVE YEARS ANNUAL ENDED ENDED ENDED ENDED RETURN SINCE FEBRUARY 28, 2002 AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002 INCEPTION(3) ----------------- --------------- --------------- --------------- ------------ EMERGING GROWTH FUND 1.41% (8.52)% (7.23)% 7.19% 13.28% Russell 2000 Growth Index (4.56)% (22.49)% (26.02)% (6.70)% (4.53)% GROWTH FUND (0.10)% (13.37)% (13.45)% (0.55)% 4.56% Russell 2500 Growth Index (4.63)% (21.12)% (24.77)% (3.50)% (0.86)% MID CAP FUND 2.98% (11.13)% (8.48)% 4.78% 10.00% S&P 400 Index 2.90% (11.80)% (9.24)% 8.35% 11.65% Russell Mid Cap Index 1.36% (13.01)% (11.82)% 3.99% 7.57% SMALL CAP VALUE FUND 13.65% (0.30)% 13.31% N.A. 18.80% Russell 2000 Value Index 5.85% (10.82)% (5.60)% N.A. 6.97%
1 SIX-MONTH RESULTS The prior table shows that our funds posted modest losses during the second half of the past fiscal year, ranging from just -0.3% for the Small Cap Value Fund to - -13.4% for the Growth Fund. The table also confirms that the market overall was even less hospitable. The benchmarks that apply to our Funds produced losses ranging from -10.8% for the Russell 2000 Value Index to -22.5% for the Russell 2000 Growth Index over this six-month period. You are aware that Numeric tends to focus more on the added value, or excess return, of its funds than on their absolute return. From that perspective, the second half of the past fiscal year was an excellent period for our funds. All of our funds were able to beat their benchmarks, with Emerging Growth, Small Cap Value, Growth and Midcap adding 14.0%, 10.5%, 7.8% and 0.7% respectively. It is sometimes said that "you can't eat alpha," meaning that a POSITIVE excess return is not a complete antidote to a NEGATIVE absolute return. This is true over any period in which you must sell your investment. However for the long haul, we believe that adding value as often as possible, even in down markets, leads to higher ultimate wealth and long-term rates of return. Numeric understands that investors have an option of investing in index funds. We believe that we must add value versus the index to justify your continued business. FULL-YEAR RESULTS For the full fiscal year ended August 31st, the funds' total returns ranged from +13.3% for the Small Cap Value Fund to -13.5% for the Growth Fund, with three of the four funds producing negative total returns. We believe that the range in returns of our funds reflects the market's continued strong bias in favor of value stocks over growth stocks, plus significant positive excess returns for three of our four funds, and the pervasive bear market of the past 2+ years. Compared to the market environment of the last twelve months, the funds' returns were much stronger. Growth stocks were especially hard hit, as evidenced by the - -26.0% and -24.8% returns of the Russell 2000 and 2500 Growth Indices, respectively. Our Emerging Growth and Growth Funds were able to beat these negative twelve-month returns by 18.8% and 11.3% respectively. We regard this as excellent relative performance. Similarly, our Small Cap Value Fund was able to swim against the tide of an ebbing market to produce 18.9% positive excess returns and convert a falling market environment into satisfactory absolute returns. Only our Midcap Fund continued to produce only modest excess returns of +0.8% versus its official S&P Midcap Index. Compared to its true opportunity set, as represented by the Russell Midcap Index, the Fund's excess return of +3.3% was more gratifying to us. MARKET COMMENTARY Throughout the last fiscal year, we remained trapped in a bear market that continued to maul investors. The bear's growl became even fiercer following the terrorist attacks of September 11th last year. By the end of our fiscal year (August 31st), valuation levels had dropped to a level where the forecast earnings yield from stocks (as measured using consensus earnings forecasts applied to the S&P 500) is now much higher than the current yield of the 10-year Treasury Note. For most of the past twenty-plus years, the forecast earnings yield of the market was lower than this Treasury Note, because investors assume that stocks will provide an additional return from growth that is not available from the fixed coupon of a Treasury debt interest. This relationship between the T-Note and the market's earnings yield, sometimes referred to as the Fed Model, suggests that stocks are historically cheap compared to their normal relationship with government debt. At such moments in the past, investors have been rewarded by favoring stocks over bonds. Thus history suggests that despite all the doom and gloom, this may prove to be a good time to invest in U.S. equities. 2 Conversely there exist three reasons why a prudent investor might remain cautious. First, we remain in the aftermath of the extraordinary Internet and megacap bubbles that ran valuations to irrational levels as recently as three years ago. History suggests that there is normally a fall-out following a financial mania that impacts the stock market and the real economy and could completely overwhelm normal cyclical relationships and patterns. Thus the market could appear cheap and likely to rebound purely on the basis of attractive valuations, but "it's different this time" (to paraphrase bubble-speak), just because we recently experienced the bubble. Second, the market remains concerned about the level and quality of earnings, especially following the accounting revelations of the past year. Our analysis suggests however, that this issue may be fading as third-quarter earnings reports follow closely the historically normal patterns of mild downgrades, on average. Said differently, earnings reports are not so extraordinarily weak as to justify the extraordinarily low price of the market. Third, the market remains concerned about terrorism, Iraq, snipers in our midst and moral lapses by our business and religious leaders. These sour elements have been thoroughly discussed by your favorite pundits so we will not embellish this topic further here, except to assert that these issues collectively restrain animal spirits and can contribute to a cautious and somber market. COMMENTS ON OUR PERFORMANCE As already discussed, three of our four Funds were able to trounce the returns of their benchmarks over the prior six and twelve months and even the fourth fund had a modest victory. It is our belief that the source of our excess returns is always our stock-selection models, because we never time markets or sectors. That last year was so successful from the perspective of RELATIVE returns can only be explained by our models. This leads to the question, "why were the models so successful last year?" We have never been able to explain with any mathematical precision why our process performs well or poorly over a particular period, but we perceive an intuitive relationship that we will share with you. Our models are based on rational investor behavior. Our models identify errors in market pricing that the market should correct. Other models see information in trends in earnings estimates or tell-tales in financial statements that allow us to anticipate where favorable or unfavorable information flow is likely to occur. We perceive that our models are especially effective in cautious, somber market environments where earnings are paramount and speculative frenzies are absent. Conversely our models will fail to add value in speculative environments where earnings don't matter, "it's different this time," and extreme valuation differentials not only fail to correct but widen further. The bear market of the past 2+ years has been a market of increasing skepticism and caution, whether reacting to a business cycle that is struggling or digesting the aftermath of the bubbles. Just because the market has been so cold-blooded and rational, our processes have prospered. Although we caution that the next statement could well be incorrect, we think it unlikely that the U.S. equity market will experience another bubble anytime soon. If the market's tone remains cautious and sober as we expect, we are optimistic that our models' recent efficacy may continue into the future. COMMENTS ON OUR PROCESS Numeric is constantly working to improve its stock-selection process to enhance its informational advantage in the stock market. Two research innovations of the past year deserve mention. One already has been added to the investment process for the growth-oriented Growth and Emerging Growth Funds. We expect to add the second innovation to our Small Cap Value Fund shortly. 3 Numeric has identified a new "information-flow" variable called "Short Interest" that simulations show has successfully selected stocks that tend to produce earnings disappointments and resultant weak stock returns, at least in the past. Short interest measures the amount of a stock's float that has been sold short by investors who are betting that the stock will fall in price either because it is overvalued or because there is something fishy going on in the company that the market doesn't realize yet. Short selling is not for the faint-of-heart however, because a stock sold short could more than double in price, causing the short seller to lose more than 100% of the original investment. Furthermore, short sellers must develop their information with little cooperation from the company, so their insights can be quite original and significant. Our analysis indicates that short interest is evidence, on average, of great conviction and unique research. Our research has shown that Short Interest is an especially effective stock-selection tool among the more speculative, smaller cap companies with the highest growth expectations. Thus Short Interest has been added to the investment process for our Growth and Emerging Growth Funds, to recognize which companies are most heavily shorted, and therefore which our Funds should avoid. The second innovation is our newfound ability to analyze real estate investment trusts (called REITs for short). Because REITs are primarily pools of real estate, quantitative STOCK analysts generally have avoided analyzing them and investing in them. The financial structure of a REIT is very different than a business making a product or providing a service. Our inability to analyze or invest in REITs has created a potential problem for our Small Cap Value Fund because REITs comprise more than ten percent of the Fund's benchmark, the Russell 2000 Value Index. To have no exposure to REITs because we could not analyze them leaves the portfolio underweighted and unable to seek profits from this area. In fact REITs have been among the strongest performing industries in the market for much of the past two years. Fortunately, our underexposure to this segment has not stopped the Fund from generating returns that compare favorably with most other funds in this market segment. Nonetheless we are delighted now to be able to analyze this important segment of the market. We expect to allow the Small Cap Value Fund to begin investing in REITs in the next few months, as soon as our systems are modified to add this new "industry." COMMENTS ON YOUR FUNDS You may have noticed that our Emerging Growth and Small Cap Value Funds have not always been open for new investment when you wanted them to be, especially in the recent past. This is because we are vigilant in limiting our assets under management in each of our strategies so that we can prevent transaction costs from consuming too much of our investment insight. Last spring, money poured into the Small Cap Value Fund as market-timers chased one of the few areas of the market still going up, and our excellent returns relative to other Small Cap Value funds put this fund in the spotlight. That our funds carry no loads made them further attractive to short-term investors. In mid-April, the Fund was closed to all new investment when assets in the Fund and a related institutional portfolio reached the target level. We received a number of calls from disappointed investors who were too late to invest in this winning fund. No sooner had we closed the Fund than the market dropped and many of the short-term investors sold their positions, despite continuing good performance relative to the small cap value benchmark. As a result, we re-opened the Fund to accommodate the demand that had been there so urgently just two months before. Now, several months later, the Fund is close to closing again to new investors as inflows continue. Similarly, the Emerging Growth (then called Microcap) Fund was reopened last spring after some market timers exited the fund, but has since been closed again because of flows into related institutional portfolios. 4 It remains a continuing challenge for us to provide the liquidity that investors seek while still protecting the interests of our long-term investors who realize that a Numeric fund is best able to add value for them gradually and consistently over time, in bear markets or bull. We recently increased the redemption fee to investors, who exit the funds within a year of their investment, to discourage such investors from investing with us. The redemption fee is paid into the fund to compensate our long-term investors for the cost of providing liquidity to the impatient and opportunistic investors who are timing an investment style or a market. To the extent that you are one of our long-term investors, we believe you should benefit by keeping the hot money crowd away. IN SUMMARY The fiscal year ending August 31, 2002 was a tumultuous period for the markets, beginning with the terrorist attacks and concluding with continued weakness in the markets and (perhaps) the economy. Looking back a decade from now, we expect that investors will conclude that today's market represented good value and that investors will be pleased (or will wish) that they were invested in the market at the present time. Also looking back, we intend that investors in N/I NUMERIC INVESTORS FAMILY OF FUNDS will conclude that Numeric managed these funds in the best interest of their shareholders. Hopefully our investors also will observe that substantial value had been added along the way. We cannot guarantee any of these outcomes of course, but we will do our best to make it happen. Thank you for your patronage last year. Sincerely, /S/ L. B. Wheeler Langdon B. Wheeler, CFA President & Chief Investment Officer Numeric Investors L.P.(R) 5 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") Comparison of Change in Value of $10,000 Investment in N/I NUMERIC INVESTORS Emerging Growth Fund(1)(2) vs. Russell 2000 Growth Index [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS: Emerging Growth Fund Russell 2000 Growth Index 6/3/96 $10,000.00 $10,000.00 8/31/96 $ 9,725.00 $ 8,815.78 11/30/96 $11,392.00 $ 9,116.86 2/28/97 $11,426.00 $ 8,951.58 5/31/97 $12,194.00 $ 9,459.02 8/31/97 $15,405.00 $10,588.80 11/30/97 $15,547.00 $10,490.90 2/28/98 $16,354.00 $11,272.10 5/31/98 $16,188.60 $10,958.10 8/31/98 $12,209.80 $ 7,803.93 11/30/98 $16,225.30 $ 9,745.00 2/28/99 $16,109.00 $10,089.00 5/31/99 $17,588.80 $11,372.80 8/31/99 $19,058.10 $11,167.80 11/30/99 $20,974.70 $12,908.80 2/29/00 $27,971.00 $18,544.10 5/31/00 $24,620.10 $13,612.10 8/31/00 $29,429.10 $15,531.90 11/30/00 $22,517.80 $11,099.70 2/28/01 $22,942.30 $10,987.00 5/31/01 $24,382.90 $11,470.50 8/31/01 $23,496.00 $10,105.00 11/30/01 $23,034.60 $10,065.20 2/28/02 $23,828.20 $ 9,644.14 5/31/02 $25,378.60 $ 9,655.97 8/31/02 $21,797.90 $ 7,475.47 --------------------------------------------- Emerging Growth Fund $21,798 Russell 2000 Growth Index $ 7,475 --------------------------------------------- - ------------------------------------------------------------------------------- Total Returns AVERAGE ANNUAL ------------------------------ ONE YEAR ENDED FIVE YEARS ENDED SINCE AUGUST 31, 2002 AUGUST 31, 2002 INCEPTION(3) --------------- ---------------- ------------ Emerging Growth Fund (7.23)% 7.19% 13.28% Russell 2000 Growth Index (26.02)% (6.70)% (4.53)% - -------------------------------------------------------------------------------- - ----------------------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the index is unmanaged, does not incur expenses and is not available for investment. (2) Numeric Investors L.P.(R) waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, as necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. (3) For the period June 3, 1996 (commencement of operations) through August 31, 2002. 6 [LOGO OMITTED] n/i numeric investors family of funds GROWTH FUND Comparison of Change in Value of $10,000 Investment in N/I NUMERIC INVESTORS Growth Fund(1)(2) vs. Russell 2500 Growth Index [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS: Growth Fund Russell 2500 Growth Index 6/3/96 $10,000.00 $10,000.00 8/31/96 $ 9,867.00 $ 9,144.23 11/30/96 $10,925.00 $ 9,672.72 2/28/97 $10,575.00 $ 9,572.28 5/31/97 $11,384.00 $10,059.70 8/31/97 $13,585.00 $11,326.70 11/30/97 $13,402.00 $11,195.70 2/28/98 $13,754.00 $11,953.80 5/31/98 $13,111.50 $11,707.00 8/31/98 $ 9,640.78 $ 8,434.27 11/30/98 $11,931.00 $10,490.00 2/28/99 $12,040.00 $10,872.50 5/31/99 $13,385.20 $12,413.50 8/31/99 $14,731.00 $12,738.50 11/30/99 $16,998.70 $15,044.10 2/29/00 $23,591.20 $22,342.20 5/31/00 $20,132.70 $16,929.20 8/31/00 $24,027.40 $19,890.30 11/30/00 $16,929.40 $14,128.40 2/28/01 $15,982.40 $13,511.00 5/31/01 $16,579.80 $14,248.80 8/31/01 $15,269.00 $12,599.30 11/30/01 $15,079.10 $12,683.20 2/28/02 $15,254.00 $12,016.00 5/31/02 $15,807.60 $11,920.20 8/31/02 $13,214.30 $ 9,477.83 --------------------------------------------- Growth Fund $13,214 Russell 2500 Growth Index $ 9,478 --------------------------------------------- - ------------------------------------------------------------------------------- Total Returns AVERAGE ANNUAL ------------------------------ ONE YEAR ENDED FIVE YEARS ENDED SINCE AUGUST 31, 2002 AUGUST 31, 2002 INCEPTION(3) --------------- ---------------- ------------ Growth Fund (13.45)% (0.55)% 4.56% Russell 2500 Growth Index (24.77)% (3.50)% (0.86)% - -------------------------------------------------------------------------------- - ----------------------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the index is unmanaged, does not incur expenses and is not available for investment. (2) Numeric Investors L.P.(R) waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, as necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. (3) For the period June 3, 1996 (commencement of operations) through August 31, 2002. 7 [LOGO OMITTED] n/i numeric investors family of funds MID CAP FUND Comparison of Change in Value of $10,000 Investment in N/I NUMERIC INVESTORS Mid Cap Fund(1)(2) vs. S&P MidCap 400 Index [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS: Mid Cap Fund S&P MidCap 400 Index 6/3/96 $10,000.00 $10,000.00 8/31/96 $ 9,633.00 $ 9,713.02 11/30/96 $11,158.00 $10,738.20 2/28/97 $11,334.00 $11,061.90 5/31/97 $12,397.00 $11,814.80 8/31/97 $14,364.00 $13,333.30 11/30/97 $14,732.00 $13,687.60 2/28/98 $16,232.00 $15,103.50 5/31/98 $16,684.70 $15,350.20 8/31/98 $13,076.40 $12,084.40 11/30/98 $15,492.00 $15,108.60 2/28/99 $16,127.80 $15,421.30 5/31/99 $18,002.70 $17,177.30 8/31/99 $18,518.00 $17,105.10 11/30/99 $19,355.20 $18,336.10 2/29/00 $20,491.50 $20,198.70 5/31/00 $21,665.30 $20,862.10 8/31/00 $24,000.40 $23,903.20 11/30/00 $20,722.90 $21,204.10 2/28/01 $20,783.10 $22,011.40 5/31/01 $21,521.10 $23,149.80 8/31/01 $19,819.30 $21,970.10 11/30/01 $19,243.10 $21,583.90 2/28/02 $20,408.90 $22,609.20 5/31/02 $21,181.10 $23,705.70 8/31/02 $18,137.90 $19,935.00 ------------------------------------------ Mid Cap Fund $18,138 S&P MidCap 400 Index $19,935 ------------------------------------------ - -------------------------------------------------------------------------------- Total Returns AVERAGE ANNUAL --------------------------------- ONE YEAR ENDED FIVE YEARS ENDED SINCE AUGUST 31, 2002 AUGUST 31, 2002 INCEPTION(3) --------------- ---------------- ------------ Mid Cap Fund (8.48)% 4.78% 10.00% S&P MidCap 400 Index (9.24)% 8.35% 11.65% - -------------------------------------------------------------------------------- - ----------------------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the index is unmanaged, does not incur expenses and is not available for investment. (2) Numeric Investors L.P.(R) waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, as necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. (3) For the period June 3, 1996 (commencement of operations) through August 31, 2002. 8 [LOGO OMITTED] n/i numeric investors family of funds SMALL CAP VALUE FUND Comparison of Change in Value of $10,000 Investment in N/I NUMERIC INVESTORS Small Cap Value Fund(1)(2) vs. Russell 2000 Value Index [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS: Small Cap Value Fund Russell 2000 Value Index 11/30/98 $10,000.00 $10,000.00 2/28/99 $ 9,383.33 $ 9,391.36 5/31/99 $10,866.70 $10,555.00 8/31/99 $10,716.70 $10,287.40 11/30/99 $10,044.40 $9,931.40 2/29/00 $ 9,353.96 $10,577.20 5/31/00 $10,772.70 $10,526.00 8/31/00 $12,210.30 $11,694.50 11/30/00 $12,503.30 $11,351.10 2/28/01 $14,560.00 $12,899.90 5/31/01 $15,975.90 $13,622.00 8/31/01 $16,846.40 $13,804.30 11/30/01 $16,688.30 $13,506.70 2/28/02 $19,145.20 $14,613.20 5/31/02 $21,568.00 $15,721.80 8/31/02 $19,088.50 $12,877.00 -------------------------------------------------- Small Cap Value Fund $19,089 Russell 2000 Value Index $12,877 -------------------------------------------------- - ------------------------------------------------------------------------------- Total Returns ONE YEAR ENDED AVERAGE AUGUST 31, 2002 ANNUAL(3) --------------- --------- Small Cap Value Fund 13.31% 18.80% Russell 2000 Value Index (5.60)% 6.97% - ------------------------------------------------------------------------------- - ----------------------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the index is unmanaged, does not incur expenses and is not available for investment. (2) Numeric Investors L.P.(R) waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, as necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. (3) For the period November 30, 1998 (commencement of operations) through August 31, 2002. 9 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") PORTFOLIO OF INVESTMENTS AUGUST 31, 2002 - -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- COMMON STOCKS--96.2% ADVERTISING--0.3% 4,100 Arbitron Inc.* .................................. $ 135,300 10,400 ValueVision Media, Inc., Class A* ............... 147,992 ----------- 283,292 ----------- AEROSPACE & DEFENSE--0.4% 7,900 BE Aerospace, Inc.* ............................. 62,805 15,100 MTC Technologies, Inc.* ......................... 317,100 ----------- 379,905 ----------- AIRLINES--1.0% 18,800 Atlantic Coast Airlines Holdings, Inc.* ......... 232,744 55,700 ExpressJet Holdings, Inc.* ...................... 637,765 7,400 SkyWest, Inc. ................................... 115,351 ----------- 985,860 ----------- APPAREL--0.7% 51,700 Phillips-Van Heusen Corp. ....................... 646,250 ----------- AUTOMOBILE PARTS & EQUIPMENT--1.2% 27,120 ArvinMeritor, Inc. .............................. 634,337 4,200 Oshkosh Truck Corp. ............................. 236,670 9,100 Spartan Motors, Inc. ............................ 98,280 9,200 Stoneridge, Inc.* ............................... 156,400 ----------- 1,125,687 ----------- BANKS--2.5% 1,500 Cathay Bancorp, Inc. ............................ 64,200 27,227 First BanCorp ................................... 1,124,475 13,400 Irwin Financial Corp. ........................... 243,880 11,400 Pacific Capital Bancorp ......................... 304,722 28,035 R&G Financial Corp., Class B .................... 661,065 ----------- 2,398,342 ----------- BIOTECH--1.0% 7,100 Adolor Corp.* ................................... 102,879 2,400 Atrix Laboratories, Inc.* ....................... 42,000 5,049 Martek Biosciences Corp.* ....................... 90,882 3,267 Neurocrine Biosciences, Inc.* ................... 116,599 8,888 Scios Inc.* ..................................... 213,845 9,667 Texas Biotechnology Corp.* ...................... 24,651 4,439 Transkaryotic Therapies, Inc.* .................. 153,767 4,526 Trimeris, Inc.* ................................. 205,933 ----------- 950,556 ----------- - -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- BUILDING SUPPLIES--1.5% 50,440 Building Materials Holding Corp.* ............... $ 683,966 19,000 Genlyte Group Inc., (The)* ...................... 734,350 ----------- 1,418,316 ----------- CHEMICALS - SPECIALTY--0.9% 42,200 MacDermid, Inc. ................................. 871,008 ----------- COMMERCIAL SERVICES--0.8% 29,600 Coinstar, Inc.* ................................. 799,200 ----------- COMPUTER NETWORKING PRODUCTS--1.4% 46,800 NetScreen Technologies, Inc.* ................... 558,324 41,700 SafeNet, Inc.* .................................. 761,025 ----------- 1,319,349 ----------- COMPUTER PERIPHERALS--2.7% 53,200 Iomega Corp.* ................................... 644,784 111,300 Pinnacle Systems, Inc.* ......................... 1,049,559 105,700 Sonic Solutions* ................................ 887,880 ----------- 2,582,223 ----------- COMPUTER SERVICES--0.8% 35,000 Anteon International Corp.* ..................... 796,250 ----------- COMPUTER SOFTWARE--2.6% 12,200 Hyperion Solutions Corp.* ....................... 276,940 46,500 Inter-Tel, Inc. ................................. 1,105,770 46,500 Take-Two Interactive Software, Inc.* ............ 1,167,150 ----------- 2,549,860 ----------- CONSUMER PRODUCTS--1.8% 17,700 Angelica Corp. .................................. 294,705 57,900 Applica Inc. .................................... 383,298 11,200 Blyth, Inc. ..................................... 331,184 8,200 Dial Corp. (The) ................................ 165,722 20,900 Helen of Troy Ltd.* ............................. 249,964 9,900 Russ Berrie and Co., Inc. ....................... 332,838 ----------- 1,757,711 ----------- DATA PROCESSING--1.1% 35,700 FileNET Corp.* .................................. 484,806 41,300 PracticeWorks, Inc.* ............................ 627,760 ----------- 1,112,566 ----------- ELECTRICAL EQUIPMENT--0.8% 9,800 A.O. Smith Corp. ................................ 298,410 23,800 Littelfuse, Inc.* ............................... 477,904 ----------- 776,314 ----------- The accompanying notes are an integral part of the financial statements. 10 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 - -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- ELECTRONIC COMPONENTS & ACCESSORIES--6.4% 24,200 AMETEK, Inc. .................................... $ 832,480 29,100 Artisan Components, Inc.* ....................... 266,847 34,100 Benchmark Electronics, Inc.* .................... 866,140 44,800 California Micro Devices Corp.* ................. 300,160 42,300 DSP Group, Inc.* ................................ 768,168 47,300 Exar Corp.* ..................................... 703,824 25,100 InVision Technologies, Inc.* .................... 856,663 54,700 OmniVision Technologies, Inc.* .................. 492,300 32,400 OSI Systems, Inc.* .............................. 569,916 20,800 Rogers Corp.* ................................... 572,000 ----------- 6,228,498 ----------- ELECTRONIC MEASUREMENTS - INSTRUMENTS--0.5% 33,800 Itron, Inc.* .................................... 456,638 1,300 MTS Systems Corp. ............................... 15,054 3,900 OpticNet Inc.*/** ............................... -- ----------- 471,692 ----------- ENERGY--1.0% 72,800 Headwaters Inc.* ................................ 975,520 ----------- FINANCIAL SERVICES--2.6% 57,800 American Home Mortgage Holdings, Inc. ........... 689,554 29,355 IndyMac Bancorp, Inc.* .......................... 669,294 31,600 New Century Financial Corp. ..................... 971,384 9,800 WFS Financial Inc.* ............................. 188,160 ----------- 2,518,392 ----------- FOOD & AGRICULTURE--2.5% 5,700 Chiquita Brands International, Inc.* ............ 93,195 86,000 Del Monte Foods Co.* ............................ 909,020 26,083 Fresh Del Monte Produce Inc. .................... 708,154 18,500 Performance Food Group Co.* ..................... 641,025 6,400 Sanderson Farms, Inc. ........................... 113,280 ----------- 2,464,674 ----------- HAZARDOUS WASTE MANAGEMENT--0.8% 12,700 Clean Harbors, Inc.* ............................ 127,761 22,284 Stericycle, Inc.* ............................... 691,695 ----------- 819,456 ----------- HEALTH CARE--2.1% 26,400 AMERIGROUP Corp.* ............................... 791,736 23,500 Curative Health Services, Inc.* ................. 325,240 5,300 Genesis Health Ventures, Inc.* .................. 79,765 42,348 Sierra Health Services, Inc.* ................... 818,163 ----------- 2,014,904 ----------- - -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- HOSPITALS--1.9% 33,600 Pediatrix Medical Group, Inc.* .................. $ 1,128,624 23,600 United Surgical Partners International, Inc.* ... 681,332 ----------- 1,809,956 ----------- HOTELS & MOTELS--0.8% 31,670 Choice Hotels International, Inc.* .............. 734,427 ----------- INSURANCE - HEALTH & LIFE--0.6% 33,800 UICI* ........................................... 598,260 ----------- INSURANCE - PROPERTY & CASUALTY--1.9% 34,800 American National Financial, Inc. ............... 514,692 28,300 Arch Capital Group Ltd.* ........................ 792,683 10,900 LandAmerica Financial Group, Inc. ............... 394,580 6,600 PXRE Group Ltd. ................................. 153,450 ----------- 1,855,405 ----------- INTERNET CONTENT--1.8% 32,300 Neoforma, Inc.* ................................. 291,346 51,800 NetFlix Inc.* ................................... 679,098 69,900 United Online, Inc.* ............................ 804,549 ----------- 1,774,993 ----------- LEISURE & ENTERTAINMENT--2.3% 21,278 Action Performance Companies, Inc.* ............. 688,769 39,400 GTECH Holdings Corp.* ........................... 754,510 21,700 Multimedia Games, Inc.* ......................... 461,125 14,980 Racing Champions Ertl Corp.* .................... 293,009 ----------- 2,197,413 ----------- MANUFACTURING--4.4% 29,700 Albany International Corp., Class A ............. 650,430 16,000 Briggs & Stratton Corp. ......................... 628,000 9,200 Carlisle Companies Inc. ......................... 412,160 6,900 Federal Signal Corp. ............................ 143,382 31,000 Jarden Corp.* ................................... 844,750 8,000 Matthews International Corp., Class A ........... 194,000 22,900 Shaw Group Inc. (The)* .......................... 383,575 8,300 Valmont Industries, Inc. ........................ 203,350 62,520 Walter Industries, Inc. ......................... 806,508 ----------- 4,266,155 ----------- MEDICAL & MEDICAL SERVICES--0.4% 31,700 Prime Medical Services, Inc.* ................... 339,190 ----------- MEDICAL INSTRUMENTS & SUPPLIES--7.7% 30,800 ALARIS Medical, Inc.* ........................... 199,584 47,200 Alliance Imaging, Inc.* ......................... 578,200 20,300 Biosite Inc.* ................................... 405,188 The accompanying notes are an integral part of the financial statements. 11 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ MEDICAL INSTRUMENTS & SUPPLIES--(CONTINUED) 36,900 CONMED Corp.* ................................... $ 701,838 14,391 Henry Schein, Inc.* ............................. 719,118 6,900 IDEXX Laboratories, Inc.* ....................... 200,721 4,656 Landauer, Inc. .................................. 152,298 25,410 Mentor Corp. .................................... 840,054 44,739 Merit Medical Systems, Inc.* .................... 771,748 34,900 Respironics, Inc.* .............................. 1,182,761 37,200 SangStat Medical Corp.* ......................... 677,412 44,674 STERIS Corp.* ................................... 1,019,461 ---------- 7,448,383 ---------- MULTIMEDIA/PUBLISHING--0.4% 32,100 Regent Communications, Inc.* .................... 170,130 35,100 Spanish Broadcasting System, Inc., Class A* ..... 248,157 ---------- 418,287 ---------- OFFICE & BUSINESS EQUIPMENT--0.3% 12,500 Global Imaging Systems, Inc.* ................... 245,125 ---------- OIL & GAS EQUIPMENT & SERVICES--1.8% 20,100 Hydril Co.* ..................................... 547,725 18,620 Oceaneering International, Inc.* ................ 460,473 72,700 Oil States International, Inc.* ................. 782,979 ---------- 1,791,177 ---------- OIL & GAS FIELD EXPLORATION--1.7% 21,700 Houston Exploration Co. (The)* .................. 642,320 24,675 Patina Oil & Gas Corp. .......................... 687,199 13,800 Plains Resources Inc.* .......................... 334,098 ---------- 1,663,617 ---------- OIL REFINING--0.4% 14,600 Holly Corp. ..................................... 250,390 47,400 Tesoro Petroleum Corp.* ......................... 171,588 ---------- 421,978 ---------- PHARMACEUTICALS--3.7% 8,208 American Pharmaceutical Partners, Inc.* ......... 124,844 78,200 Endo Pharmaceuticals Holdings Inc.* ............. 747,592 30,200 Eon Labs, Inc.* ................................. 550,908 43,600 Isis Pharmaceuticals, Inc.* ..................... 441,232 52,700 Noven Pharmaceuticals, Inc.* .................... 680,884 38,200 Pharmaceutical Resources, Inc.* ................. 998,930 ---------- 3,544,390 ---------- PRINTING--0.7% 18,800 Banta Corp. ..................................... 705,752 ---------- - ----------------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------------- RESIDENTIAL CONSTRUCTION--1.0% 19,992 M/I Schottenstein Homes, Inc. ................... $ 687,725 800 NVR, Inc.* ...................................... 237,200 ---------- 924,925 ---------- RESTAURANTS--0.1% 3,100 Papa John's International, Inc.* ................ 93,744 ---------- RETAIL - AUTOMOBILES--0.8% 65,100 Asbury Automotive Group Inc.* ................... 810,495 ---------- RETAIL - DISCOUNT--0.8% 45,100 Tuesday Morning Corp.* .......................... 742,346 ---------- RETAIL - SPECIALTY--7.6% 54,200 Charming Shoppes, Inc.* ......................... 371,812 35,600 GameStop Corp.* ................................. 740,480 21,000 Gymboree Corp. (The)* ........................... 334,110 31,300 J. Jill Group Inc.* ............................. 784,065 27,500 Jo-Ann Stores, Inc., Class A* ................... 825,000 1,800 Mothers Work, Inc.* ............................. 62,820 48,000 Movie Gallery, Inc.* ............................ 666,240 30,800 NBTY, Inc.* ..................................... 468,776 1,900 Payless ShoeSource, Inc.* ....................... 100,510 35,200 Regis Corp. ..................................... 899,712 8,600 REX Stores Corp.* ............................... 88,580 8,200 School Specialty, Inc.* ......................... 193,438 46,200 ShopKo Stores, Inc.* ............................ 663,432 3,700 Urban Outfitters, Inc.* ......................... 95,793 17,300 World Fuel Services Corp. ....................... 331,468 36,500 Yankee Candle Co., Inc. (The)* .................. 701,530 ---------- 7,327,766 ---------- SAVINGS & LOAN ASSOCIATIONS--4.4% 32,000 American Capital Strategies, Ltd. ............... 697,920 5,700 Community First Bankshares, Inc. ................ 155,154 3,700 Dime Community Bancshares ....................... 95,830 23,900 Doral Financial Corp. ........................... 1,013,121 32,000 Flagstar Bancorp, Inc. .......................... 734,400 7,000 Hudson United Bancorp ........................... 202,160 38,400 Westcorp ........................................ 778,368 20,100 WSFS Financial Corp. ............................ 621,090 ---------- 4,298,043 ---------- SCHOOLS--2.0% 33,800 Corinthian Colleges, Inc.* ...................... 1,259,050 24,300 University of Phoenix Online* ................... 699,354 ---------- 1,958,404 ---------- The accompanying notes are an integral part of the financial statements. 12 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 2002 - ------------------------------------------------------------------------------ PRINCIPAL VALUE AMOUNT (000'S) (NOTE 1) - ------------------------------------------------------------------------------ SEMICONDUCTORS--4.0% 19,200 Asyst Technologies, Inc.* ....................... $ 172,224 19,300 CoorsTek, Inc.* ................................. 414,950 57,200 ESS Technology, Inc.* ........................... 683,540 50,100 FSI International, Inc.* ........................ 220,440 87,500 Kopin Corp.* .................................... 543,375 113,800 MEMC Electronic Materials, Inc.* ................ 415,370 37,600 Mykrolis Corp.* ................................. 272,976 10,300 RadiSys Corp.* .................................. 74,160 30,000 Silicon Laboratories Inc.* ...................... 677,700 28,450 Zoran Corp.* .................................... 374,687 ----------- 3,849,422 ----------- SERVICES - EMPLOYMENT AGENCIES--1.9% 28,200 CDI Corp.* ...................................... 767,040 58,800 Labor Ready, Inc.* .............................. 399,840 32,532 Right Management Consultants, Inc.* ............. 710,824 ----------- 1,877,704 ----------- SERVICES - MANAGEMENT CONSULTING--0.4% 20,800 Kroll Inc.* ..................................... 393,328 ----------- TELECOMMUNICATIONS EQUIPMENT & SERVICES--2.6% 99,400 Arris Group Inc.* ............................... 383,684 20,200 Commonwealth Telephone Enterprises, Inc.* ....... 772,650 26,400 Plantronics, Inc.* .............................. 484,704 22,200 Powerwave Technologies, Inc.* ................... 137,640 74,800 Tekelec* ........................................ 734,461 ----------- 2,513,139 ----------- TOBACCO--1.1% 15,500 DIMON Inc. ...................................... 102,455 53,060 Standard Commercial Corp. ....................... 1,011,324 ----------- 1,113,779 ----------- TRANSPORTATION--1.0% 14,600 Celadon Group, Inc.* ............................ 151,110 10,000 Covenant Transport, Inc., Class A* .............. 180,300 12,600 Landstar System, Inc.* .......................... 638,190 ----------- 969,600 ----------- UTILITIES--0.3% 7,000 UGI Corp. ....................................... 246,050 ----------- Total Common Stocks (Cost $92,694,756) ............................ 93,179,078 ----------- - ------------------------------------------------------------------------------ PRINCIPAL VALUE AMOUNT (000'S) (NOTE 1) - ------------------------------------------------------------------------------ REPURCHASE AGREEMENT--4.6% $ 4,473 Bear, Stearns & Co., Inc. (Agreement dated 08/30/02 to be repurchased at $4,474,324) 1.82%, 09/03/02 (Cost $4,473,419) (Note 6) .................... $ 4,473,419 ----------- Total Investments-- 100.8% (Cost $97,168,175) ............................ 97,652,497 ----------- Liabilities in Excess of Other Assets -- (0.8)% .............................. (787,386) Net Assets -- 100.0% ............................ $96,865,111 =========== - ----------- * Non-income producing. ** Security was delisted on March 13, 2001 and is currently fair valued. The accompanying notes are an integral part of the financial statements. 13 [LOGO OMITTED] n/i numeric investors family of funds GROWTH FUND PORTFOLIO OF INVESTMENTS AUGUST 31, 2002 - ----------------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------------- COMMON STOCKS--95.8% ADVERTISING--0.1% 700 Arbitron Inc.* .................................. $ 23,100 ----------- AEROSPACE & DEFENSE--1.0% 2,700 BE Aerospace, Inc.* ............................. 21,465 1,400 Engineered Support Systems, Inc. ................ 76,301 10,400 Precision Castparts Corp. ....................... 236,912 ----------- 334,678 ----------- AIRLINES--1.0% 4,700 Atlantic Coast Airlines Holdings, Inc.* ......... 58,186 17,200 ExpressJet Holdings, Inc.* ...................... 196,940 4,600 SkyWest, Inc. ................................... 71,705 ----------- 326,831 ----------- APPAREL--2.4% 7,400 Jones Apparel Group, Inc.* ...................... 267,066 9,900 Kellwood Co. .................................... 246,708 7,400 Phillips-Van Heusen Corp. ....................... 92,500 10,900 Russell Corp. ................................... 174,182 3,000 Tommy Hilfiger Corp.* ........................... 36,000 ----------- 816,456 ----------- AUTOMOBILE PARTS & EQUIPMENT--1.8% 12,000 ArvinMeritor, Inc. .............................. 280,680 11,200 Dura Automotive Systems, Inc.* .................. 153,440 1,600 Oshkosh Truck Corp. ............................. 90,160 5,300 Tenneco Automotive Inc.* ........................ 32,224 5,300 Tower Automotive, Inc.* ......................... 42,241 ----------- 598,745 ----------- BANKS--0.1% 2,000 Pacific Capital Bancorp ......................... 53,460 ----------- BIOTECH--2.2% 1,100 Affymetrix, Inc.* ............................... 19,811 3,800 Alkermes, Inc.* ................................. 31,198 900 Atrix Laboratories, Inc.* ....................... 15,750 1,700 Cephalon, Inc.* ................................. 73,950 2,600 Charles River Laboratories International, Inc.* 102,830 2,500 CuraGen Corp.* .................................. 14,525 2,000 Diversa Corp.* .................................. 18,000 2,200 Enzon, Inc.* .................................... 48,400 1,500 ICOS Corp.* ..................................... 36,420 2,300 Invitrogen Corp.* ............................... 81,880 1,400 Myriad Genetics, Inc.* .......................... 24,038 500 Neurocrine Biosciences, Inc.* ................... 17,845 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ BIOTECH--(CONTINUED) 1,300 OSI Pharmaceuticals, Inc.* ...................... $ 20,384 2,300 Scios Inc.* ..................................... 55,338 1,600 Transkaryotic Therapies, Inc.* .................. 55,424 1,200 Trimeris, Inc.* ................................. 54,600 3,416 Vertex Pharmaceuticals Inc.* .................... 67,978 ----------- 738,371 ----------- BUILDING SUPPLIES--0.5% 2,900 Genlyte Group Inc., (The)* ...................... 112,085 1,400 York International Corp. ........................ 44,660 ----------- 156,745 ----------- CHEMICALS - SPECIALTY--0.2% 3,200 MacDermid, Inc. ................................. 66,048 ----------- COMMERCIAL SERVICES--0.5% 6,600 Coinstar, Inc.* ................................. 178,200 ----------- COMPUTER NETWORKING PRODUCTS--0.3% 8,600 NetScreen Technologies, Inc.* ................... 102,598 ----------- COMPUTER PERIPHERALS--2.1% 16,100 Iomega Corp.* ................................... 195,132 32,800 Pinnacle Systems, Inc.* ......................... 309,304 26,100 Sonic Solutions* ................................ 219,240 ----------- 723,676 ----------- COMPUTER SERVICES--0.6% 8,800 Anteon International Corp.* ..................... 200,200 ----------- COMPUTER SOFTWARE--5.9% 12,300 Activision, Inc.* ............................... 342,801 3,600 Electronic Arts Inc.* ........................... 227,736 1,500 Hyperion Solutions Corp.* ....................... 34,050 13,100 Inter-Tel, Inc. ................................. 311,518 5,592 McAfee.com Corp.* ............................... 93,107 7,900 Symantec Corp.* ................................. 225,940 7,900 Synopsys, Inc.* ................................. 340,885 17,100 Take-Two Interactive Software, Inc.* ............ 429,210 ----------- 2,005,247 ----------- CONSUMER PRODUCTS--2.0% 6,100 Applica Inc. .................................... 40,382 6,200 Black & Decker Corp. (The) ...................... 278,194 4,100 Blyth, Inc. ..................................... 121,237 3,600 Department 56, Inc.* ............................ 46,044 3,400 Dial Corp. (The) ................................ 68,714 11,100 Playtex Products, Inc.* ......................... 121,545 ----------- 676,116 ----------- The accompanying notes are an integral part of the financial statements. 14 [LOGO OMITTED] n/i numeric investors family of funds GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 - ----------------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------------- DATA PROCESSING--0.6% 5,000 FileNET Corp.* .................................. $ 67,900 2,800 Global Payments Inc. ............................ 78,008 3,200 PracticeWorks, Inc.* ............................ 48,640 ----------- 194,548 ----------- ELECTRICAL EQUIPMENT--0.3% 2,300 A.O. Smith Corp. ................................ 70,035 1,600 Littelfuse, Inc.* ............................... 32,128 ----------- 102,163 ----------- ELECTRONIC COMPONENTS & ACCESSORIES--5.8% 9,100 AMETEK, Inc. .................................... 313,040 8,100 Arrow Electronics, Inc.* ........................ 131,949 12,000 Benchmark Electronics, Inc.* .................... 304,800 11,000 DSP Group, Inc.* ................................ 199,760 14,200 Exar Corp.* ..................................... 211,296 9,400 InVision Technologies, Inc.* .................... 320,822 14,300 Marvell Technology Group Ltd.* .................. 272,558 10,100 OmniVision Technologies, Inc.* .................. 90,900 7,900 OSI Systems, Inc.* .............................. 138,961 ----------- 1,984,086 ----------- ELECTRONIC MEASUREMENTS - INSTRUMENTS--0.4% 11,000 Itron, Inc.* .................................... 148,610 ----------- ENERGY--0.7% 18,500 Headwaters Inc.* ................................ 247,900 ----------- FINANCIAL SERVICES--2.2% 5,200 American Home Mortgage Holdings, Inc. ........... 62,036 1,200 H&R Block, Inc. ................................. 58,680 9,800 IndyMac Bancorp, Inc.* .......................... 223,440 13,500 New Century Financial Corp. ..................... 414,990 ----------- 759,146 ----------- FOOD & AGRICULTURE--2.7% 9,700 Del Monte Foods Co.* ............................ 102,529 12,000 Fresh Del Monte Produce Inc. .................... 325,800 8,300 Performance Food Group Co.* ..................... 287,595 8,900 Ralcorp Holdings, Inc.* ......................... 211,108 ----------- 927,032 ----------- HAZARDOUS WASTE MANAGEMENT--0.9% 4,200 Clean Harbors, Inc.* ............................ 42,251 8,144 Stericycle, Inc.* ............................... 252,790 ----------- 295,041 ----------- - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ HEALTH CARE--2.8% 5,400 AMERIGROUP Corp.* ............................... $ 161,946 3,000 Curative Health Services, Inc.* ................. 41,520 5,700 Mid Atlantic Medical Services, Inc.* ............ 205,827 4,400 Oxford Health Plans, Inc.* ...................... 178,420 13,000 Sierra Health Services, Inc.* ................... 251,160 2,300 Weight Watchers International, Inc.* ............ 109,135 ----------- 948,008 ----------- HOSPITALS--1.1% 9,300 Pediatrix Medical Group, Inc.* .................. 312,387 1,700 United Surgical Partners International, Inc.* ... 49,079 ----------- 361,466 ----------- HOTELS & MOTELS--0.3% 4,900 Choice Hotels International, Inc.* .............. 113,631 ----------- INSURANCE - HEALTH & LIFE--0.7% 5,300 AmerUs Group Co. ................................ 169,547 3,600 UICI* ........................................... 63,720 ----------- 233,267 ----------- INSURANCE - PROPERTY & CASUALTY--1.6% 4,600 Everest Re Group, Ltd. .......................... 249,320 2,100 LandAmerica Financial Group, Inc. ............... 76,020 6,750 W. R. Berkley Corp. ............................. 227,205 ----------- 552,545 ----------- INTERNET CONTENT--1.3% 1,000 Hotels.Com, Class A* ............................ 41,640 13,200 NetFlix Inc.* ................................... 173,052 19,500 United Online, Inc.* ............................ 224,445 ----------- 439,137 ----------- INVESTMENT MANAGEMENT--0.6% 4,800 BlackRock, Inc.* ................................ 212,400 ----------- LEISURE & ENTERTAINMENT--2.0% 6,450 Action Performance Companies, Inc.* ............. 208,787 3,900 Aztar Corp.* .................................... 55,770 13,800 GTECH Holdings Corp.* ........................... 264,270 3,600 Multimedia Games, Inc.* ......................... 76,500 900 Polaris Industries Inc. ......................... 66,015 ----------- 671,342 ----------- MACHINERY--0.1% 1,800 Terex Corp. ..................................... 35,370 ----------- The accompanying notes are an integral part of the financial statements. 15 [LOGO OMITTED] n/i numeric investors family of funds GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ MANUFACTURING--4.3% 8,400 Albany International Corp., Class A ............. $ 183,960 5,700 Briggs & Stratton Corp. ......................... 223,725 3,000 Carlisle Companies Inc. ......................... 134,400 1,700 Federal Signal Corp. ............................ 35,326 14,100 Intermet Corp. .................................. 135,219 10,400 Jarden Corp.* ................................... 283,400 6,900 La-Z-Boy Inc. ................................... 170,775 1,300 Matthews International Corp., Class A ........... 31,525 11,900 Shaw Group Inc. (The)* .......................... 199,325 6,100 Walter Industries, Inc. ......................... 78,690 ----------- 1,476,345 ----------- MEDICAL & MEDICAL SERVICES--0.3% 3,000 Kindred Healthcare, Inc.* ....................... 112,380 ----------- MEDICAL INSTRUMENTS & SUPPLIES--9.2% 5,900 Biosite Inc.* ................................... 117,764 3,900 CONMED Corp.* ................................... 74,178 6,900 DENTSPLY International Inc. ..................... 273,723 12,300 Fisher Scientific International Inc.* ........... 353,748 7,000 Henry Schein, Inc.* ............................. 349,790 4,620 Mentor Corp. .................................... 152,737 12,075 Merit Medical Systems, Inc.* .................... 208,294 10,300 Respironics, Inc.* .............................. 349,067 8,900 SangStat Medical Corp.* ......................... 162,069 6,600 St. Jude Medical, Inc.* ......................... 245,586 17,400 STERIS Corp.* ................................... 397,068 10,400 Varian Medical Systems, Inc.* ................... 442,312 ----------- 3,126,336 ----------- METALS--0.2% 9,600 USEC Inc. ....................................... 72,480 ----------- MULTIMEDIA/PUBLISHING--0.9% 6,700 Spanish Broadcasting System, Inc., Class A* ..... 47,369 7,500 Westwood One, Inc.* ............................. 261,975 ----------- 309,344 ----------- OFFICE & BUSINESS EQUIPMENT--1.0% 3,400 Global Imaging Systems, Inc.* ................... 66,674 8,800 Ingram Micro Inc., Class A* ..................... 120,120 4,800 Tech Data Corp.* ................................ 158,736 ----------- 345,530 ----------- OIL & GAS EQUIPMENT & SERVICES--2.3% 2,800 Hydril Co.* ..................................... 76,300 2,300 Kinder Morgan, Inc. ............................. 94,737 7,558 Oceaneering International, Inc.* ................ 186,909 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ OIL & GAS EQUIPMENT & SERVICES--(CONTINUED) 2,400 Tidewater Inc. .................................. $ 68,400 19,400 Varco International, Inc.* ...................... 342,022 ----------- 768,368 ----------- OIL & GAS FIELD EXPLORATION--1.7% 4,400 Houston Exploration Co. (The)* .................. 130,240 1,100 Newfield Exploration Co.* ....................... 37,290 9,850 Patina Oil & Gas Corp. .......................... 274,323 2,700 Plains Resources Inc.* .......................... 65,367 2,200 Pogo Producing Co. .............................. 72,270 ----------- 579,490 ----------- PAPER & ALLIED PRODUCTS--0.3% 14,600 Louisiana-Pacific Corp.* ........................ 113,150 ----------- PHARMACEUTICALS--3.0% 4,600 Barr Laboratories, Inc.* ........................ 325,266 7,700 Isis Pharmaceuticals, Inc.* ..................... 77,924 3,800 Mylan Laboratories Inc. ......................... 124,070 14,200 Noven Pharmaceuticals, Inc.* .................... 183,464 12,100 Pharmaceutical Resources, Inc.* ................. 316,415 ----------- 1,027,139 ----------- PRINTING--0.4% 3,500 Banta Corp. ..................................... 131,390 ----------- RESIDENTIAL CONSTRUCTION--1.6% 2,100 Lennar Corp. .................................... 110,880 4,500 M/I Schottenstein Homes, Inc. ................... 154,800 900 NVR, Inc.* ...................................... 266,850 ----------- 532,530 ----------- RESTAURANTS--0.1% 1,600 Lone Star Steakhouse & Saloon, Inc. ............. 31,968 ----------- RETAIL - AUTOMOBILES--0.4% 9,900 Asbury Automotive Group Inc.* ................... 123,255 ----------- RETAIL - DISCOUNT--1.1% 9,900 Big Lots, Inc.* ................................. 166,815 11,900 Tuesday Morning Corp.* .......................... 195,874 ----------- 362,689 ----------- RETAIL - SPECIALTY--7.4% 8,200 GameStop Corp.* ................................. 170,560 2,600 Gymboree Corp. (The)* ........................... 41,366 8,100 J. Jill Group Inc.* ............................. 202,905 7,900 Jo-Ann Stores, Inc., Class A* ................... 237,000 15,800 Movie Gallery, Inc.* ............................ 219,304 The accompanying notes are an integral part of the financial statements. 16 [LOGO OMITTED] n/i numeric investors family of funds GROWTH FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ RETAIL - SPECIALTY--(CONTINUED) 700 Payless ShoeSource, Inc.* ....................... $ 37,030 9,600 PETsMART, Inc.* ................................. 160,416 10,000 Reebok International Ltd.* ...................... 244,600 10,500 Regis Corp. ..................................... 268,380 8,600 Ross Stores, Inc. ............................... 310,546 10,900 Saks Inc.* ...................................... 115,758 2,400 School Specialty, Inc.* ......................... 56,616 14,900 ShopKo Stores, Inc.* ............................ 213,964 2,500 Staples, Inc.* .................................. 34,750 10,100 Yankee Candle Co., Inc. (The)* .................. 194,122 ----------- 2,507,317 ----------- SAVINGS & LOAN ASSOCIATIONS--5.9% 7,800 American Capital Strategies, Ltd. ............... 170,118 9,400 Doral Financial Corp. ........................... 398,466 4,400 FirstFed Financial Corp.* ....................... 124,300 11,900 Flagstar Bancorp, Inc. .......................... 273,105 4,200 Greater Bay Bancorp ............................. 105,840 6,700 GreenPoint Financial Corp. ...................... 341,700 4,600 Hudson United Bancorp ........................... 132,848 2,300 New York Community Bancorp, Inc. ................ 71,783 1,200 Provident Financial Group, Inc. ................. 34,752 8,400 Webster Financial Corp. ......................... 320,376 2,000 Westcorp ........................................ 40,540 ----------- 2,013,828 ----------- SCHOOLS--2.2% 4,500 Career Education Corp.* ......................... 200,655 10,100 Corinthian Colleges, Inc.* ...................... 376,225 5,633 University of Phoenix Online* ................... 162,118 ----------- 738,998 ----------- SEMICONDUCTORS--2.2% 2,800 Asyst Technologies, Inc.* ....................... 25,116 20,400 ESS Technology, Inc.* ........................... 243,780 4,437 Intersil Corp., Class A* ........................ 75,074 14,500 Kopin Corp.* .................................... 90,045 4,600 Mykrolis Corp.* ................................. 33,396 5,600 Oak Technology, Inc.* ........................... 24,472 5,100 Silicon Laboratories Inc.* ...................... 115,209 11,350 Zoran Corp.* .................................... 149,480 ----------- 756,572 ----------- SERVICES - EMPLOYMENT AGENCIES--1.5% 5,400 CDI Corp.* ...................................... 146,880 12,900 Labor Ready, Inc.* .............................. 87,720 12,412 Right Management Consultants, Inc.* ............. 271,202 ----------- 505,802 ----------- - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ SERVICES - MANAGEMENT CONSULTING--0.5% 700 Hewitt Associates, Inc., Class A* ............... $ 19,726 8,300 Kroll Inc.* ..................................... 156,953 ----------- 176,679 ----------- STEEL--0.7% 16,600 United States Steel Corp. ....................... 227,918 ----------- TELECOMMUNICATIONS EQUIPMENT & SERVICES--1.8% 30,200 Arris Group Inc.* ............................... 116,572 2,000 Commonwealth Telephone Enterprises, Inc.* ....... 76,500 7,400 Plantronics, Inc.* .............................. 135,864 13,900 Tekelec* ........................................ 136,484 12,350 UTStarcom, Inc.* ................................ 163,020 ----------- 628,440 ----------- TOBACCO--0.9% 6,200 Loews Corp. - Carolina Group .................... 160,580 7,700 Standard Commercial Corp. ....................... 146,762 ----------- 307,342 ----------- TRANSPORTATION--0.7% 5,000 Landstar System, Inc.* .......................... 253,250 ----------- UTILITIES--0.4% 6,300 NorthWestern Corp. .............................. 80,325 2,100 UGI Corp. ....................................... 73,815 ----------- 154,140 ----------- Total Common Stocks (Cost $34,055,407) ............................ 32,608,843 ----------- PRINCIPAL AMOUNT (000'S) - -------------- REPURCHASE AGREEMENT--5.0% $ 1,698 Bear, Stearns & Co. Inc. (Agreement dated 08/30/02 to be repurchased at $1,698,291) 1.82 %, 09/03/02 (Cost $1,697,947) (Note 6) .................... 1,697,947 ----------- Total Investments -- 100.8% (Cost $35,753,354) ............................ 34,306,790 ----------- Liabilities in Excess of Other Assets -- (0.8)% .............................. (272,913) ----------- Net Assets -- 100.0% ............................ $34,033,877 =========== - ----------- * Non-income producing. The accompanying notes are an integral part of the financial statements. 17 [LOGO OMITTED] n/i numeric investors family of funds MID CAP FUND PORTFOLIO OF INVESTMENTS AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ COMMON STOCKS--98.5% AIRLINES--0.4% 6,400 AMR Corp.* ...................................... $ 65,216 1,800 Delta Air Lines, Inc. ........................... 31,626 ----------- 96,842 ----------- APPAREL--2.3% 6,900 Jones Apparel Group, Inc.* ...................... 249,021 6,400 Tommy Hilfiger Corp.* ........................... 76,800 6,300 V. F. Corp. ..................................... 255,843 ----------- 581,664 ----------- AUTOMOBILE--1.0% 5,100 General Motors Corp. ............................ 244,086 ----------- AUTOMOBILE PARTS & EQUIPMENT--3.9% 12,800 ArvinMeritor, Inc. .............................. 299,392 7,700 Lear Corp.* ..................................... 358,820 1,800 Oshkosh Truck Corp. ............................. 101,430 18,500 Visteon Corp. ................................... 210,715 ----------- 970,357 ----------- BANKS--2.5% 1,800 Comerica Inc. ................................... 105,300 800 Compass Bancshares, Inc. ........................ 26,872 7,900 National City Corp. ............................. 246,243 6,700 Washington Mutual, Inc. ......................... 253,327 ----------- 631,742 ----------- BUILDING SUPPLIES--0.5% 3,600 York International Corp. ........................ 114,840 ----------- CHEMICALS - SPECIALTY--1.5% 4,400 Lubrizol Corp. (The) ............................ 137,280 9,200 Sherwin-Williams Co. (The) ...................... 248,400 ----------- 385,680 ----------- COMPUTER NETWORKING PRODUCTS--1.0% 8,600 Emulex Corp.* ................................... 145,168 3,200 QLogic Corp.* ................................... 107,360 ----------- 252,528 ----------- COMPUTER SOFTWARE--4.8% 11,100 Activision, Inc.* ............................... 309,357 4,100 Electronic Arts Inc.* ........................... 259,366 2,700 NetIQ Corp.* .................................... 52,380 12,000 Symantec Corp.* ................................. 343,200 5,300 Synopsys, Inc.* ................................. 228,695 ----------- 1,192,998 ----------- - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ CONSUMER PRODUCTS--2.2% 5,300 Black & Decker Corp. (The) ...................... $ 237,811 1,500 Blyth, Inc. ..................................... 44,355 4,500 Dial Corp. (The) ................................ 90,945 3,600 Fortune Brands, Inc. ............................ 188,892 ----------- 562,003 ----------- DATA PROCESSING--0.7% 3,800 Affiliated Computer Services, Inc., Class A* .... 169,100 ----------- ELECTRICAL EQUIPMENT--0.4% 3,500 Hubbell Inc., Class B ........................... 112,350 ----------- ELECTRONIC COMPONENTS & ACCESSORIES--1.1% 12,100 Marvell Technology Group Ltd.* .................. 230,626 2,900 Vishay Intertechnology, Inc.* ................... 41,528 ----------- 272,154 ----------- ENGINEERING--0.7% 6,800 Fluor Corp. - (New) ............................. 188,088 ----------- FINANCIAL SERVICES--1.5% 5,600 Capital One Financial Corp. ..................... 199,752 2,300 H&R Block, Inc. ................................. 112,470 2,000 Household International, Inc. ................... 72,220 ----------- 384,442 ----------- FOOD & AGRICULTURE--4.1% 9,800 ConAgra Foods, Inc. ............................. 257,642 4,100 Dole Food Co., Inc. ............................. 111,520 9,400 Fresh Del Monte Produce Inc. .................... 255,210 5,700 Sara Lee Corp. .................................. 105,108 16,000 Tyson Foods, Inc., Class A ...................... 198,720 5,900 Winn-Dixie Stores, Inc. ......................... 95,285 ----------- 1,023,485 ----------- HAZARDOUS WASTE MANAGEMENT--1.4% 16,800 Republic Services, Inc.* ........................ 346,080 ----------- HEALTH CARE--2.4% 8,400 Oxford Health Plans, Inc.* ...................... 340,620 3,500 WellPoint Health Networks Inc.* ................. 260,295 ----------- 600,915 ----------- INSURANCE - HEALTH & LIFE--0.7% 7,300 UnumProvident Corp. ............................. 169,068 ----------- INSURANCE - PROPERTY & CASUALTY--3.7% 4,400 ACE Limited ..................................... 139,964 5,300 American Financial Group, Inc. .................. 132,606 The accompanying notes are an integral part of the financial statements. 18 [LOGO OMITTED] n/i numeric investors family of funds MID CAP FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ INSURANCE - PROPERTY & CASUALTY--(CONTINUED) 2,700 CNA Financial Corp.* ............................ $ 74,007 12,600 Old Republic International Corp. ................ 404,460 5,000 Travelers Property Casualty Corp., Class A* ..... 78,600 3,100 W. R. Berkley Corp. ............................. 104,346 ----------- 933,983 ----------- INVESTMENT MANAGEMENT--1.0% 600 Affiliated Managers Group, Inc.* ................ 31,440 4,900 BlackRock, Inc.* ................................ 216,825 ----------- 248,265 ----------- LEISURE & ENTERTAINMENT--2.8% 15,400 GTECH Holdings Corp.* ........................... 294,910 600 Harley-Davidson, Inc. ........................... 29,538 2,500 International Game Technology* .................. 161,700 10,800 Mattel, Inc. .................................... 209,844 ----------- 695,992 ----------- MANUFACTURING--1.8% 3,500 Pentair, Inc. ................................... 152,040 2,400 Shaw Group Inc. (The)* .......................... 40,200 3,200 Textron, Inc. ................................... 124,320 2,100 United Technologies Corp. ....................... 124,719 ----------- 441,279 ----------- MEDICAL & MEDICAL SERVICES--1.6% 6,500 Express Scripts, Inc., Class A* ................. 312,000 2,200 Manor Care, Inc.* ............................... 51,568 1,400 Renal Care Group, Inc.* ......................... 45,962 ----------- 409,530 ----------- MEDICAL INSTRUMENTS & SUPPLIES--8.8% 7,200 Becton, Dickinson & Co. ......................... 219,816 4,600 DENTSPLY International Inc. ..................... 182,482 7,000 Fisher Scientific International Inc.* ........... 201,320 6,400 Henry Schein, Inc.* ............................. 319,808 4,500 Hillenbrand Industries, Inc. .................... 265,590 2,800 Laboratory Corp. of America Holdings* ........... 88,060 7,800 Respironics, Inc.* .............................. 264,342 4,100 St. Jude Medical, Inc.* ......................... 152,561 13,400 STERIS Corp.* ................................... 305,788 2,400 Varian Medical Systems, Inc.* ................... 102,072 3,000 Zimmer Holdings, Inc.* .......................... 110,700 ----------- 2,212,539 ----------- - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ MULTIMEDIA/PUBLISHING--2.5% 3,400 Fox Entertainment Group, Inc., Class A* ......... $ 75,922 8,900 Hearst-Argyle Television, Inc.* ................. 186,544 10,600 Westwood One, Inc.* ............................. 370,258 ----------- 632,724 ----------- OFFICE & BUSINESS EQUIPMENT--0.7% 15,100 IKON Office Solutions, Inc. ..................... 139,675 800 Tech Data Corp.* ................................ 26,456 ----------- 166,131 ----------- OIL & GAS EQUIPMENT & SERVICES--2.6% 3,100 Kinder Morgan, Inc. ............................. 127,689 7,400 Tidewater Inc. .................................. 210,900 18,300 Varco International, Inc.* ...................... 322,629 ----------- 661,218 ----------- OIL & GAS FIELD EXPLORATION--3.7% 1,400 Amerada Hess Corp. .............................. 102,340 2,300 Devon Energy Corp. .............................. 108,100 4,300 Kerr-McGee Corp. ................................ 201,455 10,500 Marathon Oil Corp. .............................. 259,875 7,700 Unocal Corp. .................................... 254,639 ----------- 926,409 ----------- OIL REFINING--1.4% 3,700 Sunoco, Inc. .................................... 131,276 6,600 Valero Energy Corp. ............................. 214,302 ----------- 345,578 ----------- PAPER & ALLIED PRODUCTS--1.2% 11,800 Georgia-Pacific Corp. ........................... 248,390 4,500 Smurfit-Stone Container Corp.* .................. 63,090 ----------- 311,480 ----------- PHARMACEUTICALS--1.8% 4,400 Barr Laboratories, Inc.* ........................ 311,124 4,700 Mylan Laboratories Inc. ......................... 153,455 ----------- 464,579 ----------- PHOTOGRAPHIC EQUIPMENT--0.6% 5,300 Eastman Kodak Co. ............................... 161,862 ----------- RESIDENTIAL CONSTRUCTION--1.9% 4,800 KB HOME ......................................... 230,160 800 NVR, Inc.* ...................................... 237,200 ----------- 467,360 ----------- The accompanying notes are an integral part of the financial statements. 19 [LOGO OMITTED] n/i numeric investors family of funds MID CAP FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ RETAIL - SPECIALTY--4.3% 3,900 GameStop Corp.* ................................. $ 81,120 11,400 NBTY, Inc.* ..................................... 173,508 3,100 RadioShack Corp. ................................ 67,549 5,100 Reebok International Ltd.* ...................... 124,746 5,000 Rent-A-Center, Inc.* ............................ 273,200 9,800 Staples, Inc.* .................................. 136,220 11,300 Yankee Candle Co., Inc. (The)* .................. 217,186 ----------- 1,073,529 ----------- SAVINGS & LOAN ASSOCIATIONS--11.5% 4,900 American Capital Strategies, Ltd. ............... 106,869 9,000 AmSouth Bancorp ................................. 202,230 15,200 Banknorth Group, Inc. ........................... 396,416 5,900 Doral Financial Corp. ........................... 250,101 11,800 Greater Bay Bancorp ............................. 297,360 8,600 GreenPoint Financial Corp. ...................... 438,600 3,100 Hudson United Bancorp ........................... 89,528 12,000 New York Community Bancorp, Inc. ................ 374,520 13,800 Roslyn Bancorp, Inc. ............................ 307,326 8,600 Webster Financial Corp. ......................... 328,004 4,700 Westcorp ........................................ 95,269 ----------- 2,886,223 ----------- SEMICONDUCTORS--2.1% 5,200 Applied Materials, Inc.* ........................ 69,472 7,800 Broadcom Corp., Class A* ........................ 128,622 5,200 Lam Research Corp.* ............................. 60,476 26,400 LSI Logic Corp.* ................................ 193,512 1,200 Semtech Corp.* .................................. 15,852 2,800 Varian Semiconductor Equipment Associates, Inc.* ............................. 58,576 ----------- 526,510 ----------- SERVICES - MANAGEMENT CONSULTING--0.5% 4,900 Accenture Ltd., Class A* ........................ 80,605 1,400 Hewitt Associates, Inc., Class A* ............... 39,452 ----------- 120,057 ----------- STEEL--1.0% 17,800 United States Steel Corp. ....................... 244,394 ----------- TELECOMMUNICATIONS--1.4% 5,400 PanAmSat Corp.* ................................. 101,520 3,700 QUALCOMM Inc.* .................................. 102,527 11,700 Sprint Corp. - Fon Group ........................ 135,720 ----------- 339,767 ----------- - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES--0.8% 6,500 Nextel Communications, Inc., Class A* ........... $ 49,465 11,200 UTStarcom, Inc.* ................................ 147,840 ----------- 197,305 ----------- TOBACCO--0.4% 3,900 Loews Corp. - Carolina Group .................... 101,010 ----------- TRANSPORTATION--1.9% 2,800 Burlington Northern Santa Fe Corp. .............. 80,528 6,600 Ryder System, Inc. .............................. 172,524 3,900 Union Pacific Corp. ............................. 236,145 ----------- 489,197 ----------- UTILITIES--4.9% 9,800 AGL Resources Inc. .............................. 225,204 10,500 CMS Energy Corp. ................................ 110,880 10,900 Great Plains Energy Inc. ........................ 227,483 1,400 KeySpan Corp. ................................... 49,056 10,600 Reliant Energy, Inc. ............................ 125,610 4,700 Sempra Energy ................................... 112,847 5,000 TECO Energy, Inc. ............................... 98,750 11,200 Wisconsin Energy Corp. .......................... 284,592 ----------- 1,234,422 ----------- WHOLESALE - GROCERIES & GENERAL LINE--0.5% 6,400 SUPERVALU INC. .................................. 132,928 ----------- Total Common Stocks (Cost $25,937,214) ............................ 24,722,693 ----------- PRINCIPAL AMOUNT (000'S) - -------------- REPURCHASE AGREEMENT--2.5% $ 630 Bear, Stearns & Co. Inc. (Agreement dated 08/30/02 to be repurchased at $629,833) 1.82%, 09/03/02 (Cost $629,706) (Note 6) ...................... 629,706 ----------- Total Investments -- 101.0% (Cost $26,566,920) ............................ 25,352,399 ----------- Liabilities in Excess of Other Assets -- (1.0)% .............................. (243,570) ----------- Net Assets -- 100.0% ............................ $25,108,829 =========== - ----------- * Non-income producing. The accompanying notes are an integral part of the financial statements. 20 [LOGO OMITTED] n/i numeric investors family of funds SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ COMMON STOCKS--97.2% AEROSPACE & DEFENSE--1.2% 47,500 BE Aerospace, Inc.* ............................. $ 377,625 1,000 Engineered Support Systems, Inc. ................ 54,501 52,200 Kaman Corp., Class A ............................ 585,684 22,300 Precision Castparts Corp. ....................... 507,994 ----------- 1,525,804 ----------- AIRLINES--1.5% 37,300 Atlantic Coast Airlines Holdings, Inc.* ......... 461,774 76,400 ExpressJet Holdings, Inc.* ...................... 874,780 42,400 SkyWest, Inc. ................................... 660,931 ----------- 1,997,485 ----------- APPAREL--1.7% 49,000 Kellwood Co. .................................... 1,221,080 17,200 Phillips-Van Heusen Corp. ....................... 215,000 51,600 Russell Corp. ................................... 824,568 ----------- 2,260,648 ----------- AUTOMOBILE PARTS & EQUIPMENT--3.4% 72,300 ArvinMeritor, Inc. .............................. 1,691,097 2,200 BorgWarner, Inc. ................................ 132,528 51,999 Dura Automotive Systems, Inc.* .................. 712,386 28,130 Oshkosh Truck Corp. ............................. 1,585,126 18,100 Spartan Motors, Inc. ............................ 195,480 15,300 Tenneco Automotive Inc.* ........................ 93,024 ----------- 4,409,641 ----------- BANKS--3.5% 2,400 Bank of the Ozarks, Inc. ........................ 63,168 7,300 Cathay Bancorp, Inc. ............................ 312,440 12,800 Community Bank System, Inc. ..................... 393,600 25,100 First BanCorp ................................... 1,036,630 15,400 Gold Banc Corporation, Inc. ..................... 152,922 3,200 Independent Bank Corp. .......................... 104,160 35,500 Pacific Capital Bancorp ......................... 948,915 55,500 R&G Financial Corp., Class B .................... 1,308,690 11,800 Susquehanna Bancshares, Inc. .................... 275,412 ----------- 4,595,937 ----------- BIOTECH--0.2% 9,800 Applera Corporation - Celera Genomics Group* ........................................ 92,610 31,400 ArQule Inc.* .................................... 199,390 ----------- 292,000 ----------- - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ BUILDING SUPPLIES--1.4% 28,000 Building Materials Holding Corp.* ............... $ 379,680 3,200 Centex Construction Products, Inc. .............. 117,760 17,600 Culp, Inc.* ..................................... 174,240 21,000 Genlyte Group Inc., (The)* ...................... 811,650 9,800 York International Corp. ........................ 312,620 ----------- 1,795,950 ----------- CHEMICALS - BASIC--0.4% 9,500 Airgas, Inc.* ................................... 146,300 33,600 PolyOne Corp. ................................... 314,160 ----------- 460,460 ----------- CHEMICALS - SPECIALTY--2.6% 3,800 Great Lakes Chemical Corp. ...................... 109,288 4,000 Lubrizol Corp. (The) ............................ 124,800 62,200 MacDermid, Inc. ................................. 1,283,808 5,400 Olin Corp. ...................................... 102,600 113,900 Wellman, Inc. ................................... 1,715,334 ----------- 3,335,830 ----------- COMMERCIAL SERVICES--0.5% 39,200 Dollar Thrifty Automotive Group, Inc.* .......... 687,960 ----------- COMPUTER PERIPHERALS--1.4% 14,100 Hutchinson Technology Inc.* ..................... 221,511 82,000 Iomega Corp.* ................................... 993,840 68,600 Pinnacle Systems, Inc.* ......................... 646,898 ----------- 1,862,249 ----------- COMPUTER SERVICES--0.9% 101,600 Gartner, Inc., Class A* ......................... 956,056 13,700 Tier Technologies, Inc., Class B* ............... 262,081 ----------- 1,218,137 ----------- COMPUTER SOFTWARE--1.3% 11,700 ManTech International Corp., Class A* ........... 280,215 14,900 Take-Two Interactive Software, Inc.* ............ 373,990 86,400 TALX Corp. ...................................... 1,102,464 ----------- 1,756,669 ----------- CONSUMER PRODUCTS--2.2% 10,700 American Greetings Corp., Class A ............... 178,690 28,000 Applica Inc. .................................... 185,360 14,000 Blyth, Inc. ..................................... 413,980 26,700 Helen of Troy Ltd.* ............................. 319,332 7,700 Libbey Inc. ..................................... 234,080 80,500 Playtex Products, Inc.* ......................... 881,475 19,800 Russ Berrie and Co., Inc. ....................... 665,676 ----------- 2,878,593 ----------- The accompanying notes are an integral part of the financial statements. 21 [LOGO OMITTED] n/i numeric investors family of funds SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ ELECTRICAL EQUIPMENT--1.3% 49,900 A.O. Smith Corp. ................................ $ 1,519,455 18,700 Methode Electronics, Inc., Class A .............. 181,203 ----------- 1,700,658 ----------- ELECTRONIC COMPONENTS & ACCESSORIES--2.9% 6,800 AMETEK, Inc. .................................... 233,920 37,000 Benchmark Electronics, Inc.* .................... 939,800 13,300 CTS Corp. ....................................... 85,120 43,100 DSP Group, Inc.* ................................ 782,696 38,600 OSI Systems, Inc.* .............................. 678,974 28,300 Rogers Corp.* ................................... 778,250 8,600 Wilson Greatbatch Technologies, Inc.* ........... 239,080 ----------- 3,737,840 ----------- ELECTRONIC MEASUREMENTS - INSTRUMENTS--0.7% 77,141 MTS Systems Corp. ............................... 893,293 ----------- FINANCIAL SERVICES--2.3% 33,300 American Home Mortgage Holdings, Inc. ........... 397,269 7,100 DVI, Inc.* ...................................... 106,074 12,600 IndyMac Bancorp, Inc.* .......................... 287,280 52,600 New Century Financial Corp. ..................... 1,616,924 45,100 Saxon Capital, Inc.* ............................ 635,910 ----------- 3,043,457 ----------- FOOD & AGRICULTURE--4.5% 24,500 Chiquita Brands International, Inc.* ............ 400,575 38,100 Corn Products International, Inc. ............... 1,066,800 40,600 Del Monte Foods Co.* ............................ 429,142 60,200 Fresh Del Monte Produce Inc. .................... 1,634,430 5,500 J & J Snack Foods Corp.* ........................ 209,550 11,100 Nash-Finch Co. .................................. 232,323 44,900 Ralcorp Holdings, Inc.* ......................... 1,065,028 29,199 Sanderson Farms, Inc. ........................... 516,822 14,600 Sensient Technologies Corp. ..................... 326,602 ----------- 5,881,272 ----------- HEALTH CARE--0.5% 17,900 AMERIGROUP Corp.* ............................... 536,821 4,900 Genesis Health Ventures, Inc.* .................. 73,745 ----------- 610,566 ----------- HOSPITALS--0.1% 2,900 Pediatrix Medical Group, Inc.* .................. 97,411 ----------- HOTELS & MOTELS--0.8% 47,300 Choice Hotels International, Inc.* .............. 1,096,887 ----------- - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ INSURANCE - HEALTH & LIFE--2.7% 17,000 AmerUs Group Co. ................................ $ 543,830 36,900 Delphi Financial Group, Inc., Class A ........... 1,472,310 30,200 Reinsurance Group of America, Inc. .............. 862,210 33,800 UICI* ........................................... 598,260 ----------- 3,476,610 ----------- INSURANCE - PROPERTY & CASUALTY--4.5% 35,700 American Financial Group, Inc. .................. 893,214 20,100 Arch Capital Group Ltd.* ........................ 563,001 35,800 LandAmerica Financial Group, Inc. ............... 1,295,960 59,300 Odyssey Re Holdings Corp. ....................... 1,023,518 15,500 PMA Capital Corp., Class A ...................... 290,315 26,400 PXRE Group Ltd. ................................. 613,800 7,500 Selective Insurance Group, Inc. ................. 177,000 34,800 Stewart Information Services Corp.* ............. 622,920 9,650 W. R. Berkley Corp. ............................. 324,819 ----------- 5,804,547 ----------- LEISURE & ENTERTAINMENT--1.4% 38,300 GTECH Holdings Corp.* ........................... 733,445 25,000 Multimedia Games, Inc.* ......................... 531,250 7,200 Polaris Industries Inc. ......................... 528,120 ----------- 1,792,815 ----------- MACHINERY--0.1% 7,000 Terex Corp. ..................................... 137,550 ----------- MANUFACTURING--8.3% 3,500 Briggs & Stratton Corp. ......................... 137,375 2,400 Curtiss-Wright Corp. ............................ 131,760 33,400 Federal Signal Corp. ............................ 694,052 150,600 Intermet Corp. .................................. 1,444,254 36,700 Jarden Corp.* ................................... 1,000,075 45,100 La-Z-Boy Inc. ................................... 1,116,225 3,300 Lancaster Colony Corp. .......................... 135,927 32,100 Matthews International Corp., Class A ........... 778,425 61,300 Milacron Inc. ................................... 419,905 22,100 Shaw Group Inc. (The)* .......................... 370,175 10,100 Steel Technologies Inc. ......................... 148,672 26,600 Tecumseh Products Co., Class A .................. 1,293,292 40,000 Valmont Industries, Inc. ........................ 980,000 135,134 Walter Industries, Inc. ......................... 1,743,229 2,500 Woodward Governor Co. ........................... 120,000 13,800 Worthington Industries, Inc. .................... 244,950 ----------- 10,758,316 ----------- The accompanying notes are an integral part of the financial statements. 22 [LOGO OMITTED] n/i numeric investors family of funds SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ MEDICAL & MEDICAL SERVICES--1.1% 16,300 Kindred Healthcare, Inc.* ....................... $ 610,598 56,400 Prime Medical Services, Inc.* ................... 603,480 6,800 Renal Care Group, Inc.* ......................... 223,244 ----------- 1,437,322 ----------- MEDICAL INSTRUMENTS & SUPPLIES--3.2% 44,700 Alliance Imaging, Inc.* ......................... 547,575 7,640 CONMED Corp.* ................................... 145,313 10,800 Fisher Scientific International Inc.* ........... 310,608 18,100 INAMED Corp.* ................................... 424,445 18,400 Landauer, Inc. .................................. 601,864 40,500 Mentor Corp. .................................... 1,338,930 25,400 Respironics, Inc.* .............................. 860,806 ----------- 4,229,541 ----------- METALS--1.2% 26,700 Cleveland-Cliffs Inc. ........................... 702,744 12,100 Quanex Corp. .................................... 490,050 53,500 USEC Inc. ....................................... 403,925 ----------- 1,596,719 ----------- MULTIMEDIA/PUBLISHING--0.1% 24,500 Spanish Broadcasting System, Inc., Class A* ..... 173,215 ----------- OFFICE & BUSINESS EQUIPMENT--0.8% 113,200 IKON Office Solutions, Inc. ..................... 1,047,100 ----------- OIL & GAS EQUIPMENT & SERVICES--0.3% 34,000 Oil States International, Inc.* ................. 366,180 ----------- OIL & GAS FIELD EXPLORATION--3.0% 20,100 Houston Exploration Co. (The)* .................. 594,960 15,800 Newfield Exploration Co.* ....................... 535,620 28,800 Nuevo Energy Co.* ............................... 338,688 41,800 Patina Oil & Gas Corp. .......................... 1,164,130 26,500 Plains Resources Inc.* .......................... 641,565 11,900 Stone Energy Corp.* ............................. 404,600 28,300 Vintage Petroleum, Inc. ......................... 286,962 ----------- 3,966,525 ----------- OIL REFINING--0.6% 48,900 Holly Corp. ..................................... 838,635 ----------- PAPER & ALLIED PRODUCTS--1.9% 117,400 Louisiana-Pacific Corp.* ........................ 909,850 11,700 Potlatch Corp. .................................. 362,934 49,400 Schweitzer-Mauduit International, Inc. .......... 1,212,770 ----------- 2,485,554 ----------- - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ PHARMACEUTICALS--0.3% 37,100 ICN Pharmaceuticals, Inc. ....................... $ 376,936 ----------- PRINTING--0.6% 20,600 Banta Corp. ..................................... 773,324 ----------- REAL ESTATE MANAGEMENT--0.3% 16,600 W. P. Carey & Co. LLC ........................... 399,230 ----------- RESIDENTIAL CONSTRUCTION--1.4% 11,700 Hovnanian Enterprises, Inc., Class A* ........... 364,104 38,900 M/I Schottenstein Homes, Inc. ................... 1,338,160 4,600 Standard Pacific Corp. .......................... 121,210 ----------- 1,823,474 ----------- RESTAURANTS--1.1% 4,700 Landry's Restaurants, Inc. ...................... 102,460 67,700 Lone Star Steakhouse & Saloon, Inc. ............. 1,352,646 ----------- 1,455,106 ----------- RETAIL - AUTOMOBILES--0.5% 57,000 Asbury Automotive Group Inc.* ................... 709,650 ----------- RETAIL - DISCOUNT--0.6% 43,800 Tuesday Morning Corp.* .......................... 720,948 ----------- RETAIL - SPECIALTY--4.7% 27,800 Aaron Rents, Inc. ............................... 579,908 5,200 GameStop Corp.* ................................. 108,160 26,200 Jo-Ann Stores, Inc., Class A* ................... 786,000 54,600 Movie Gallery, Inc.* ............................ 757,848 49,100 NBTY, Inc.* ..................................... 747,302 13,800 Reebok International Ltd.* ...................... 337,548 10,600 Regis Corp. ..................................... 270,936 4,760 Rent-A-Center, Inc.* ............................ 260,086 7,800 Saks Inc.* ...................................... 82,836 9,500 School Specialty, Inc.* ......................... 224,105 55,900 ShopKo Stores, Inc.* ............................ 802,724 57,100 World Fuel Services Corp. ....................... 1,094,036 4,500 Zale Corp.* ..................................... 136,575 ----------- 6,188,064 ----------- SAVINGS & LOAN ASSOCIATIONS--10.0% 74,000 American Capital Strategies, Ltd. ............... 1,613,940 12,800 BankAtlantic Bancorp, Inc., Class A ............. 131,200 5,800 BankUnited Financial Corp., Class A* ............ 103,240 43,800 Community First Bankshares, Inc. ................ 1,192,236 4,100 Dime Bancorp, Inc., Litigation Tracking Warrants* ..................................... 328 21,100 Doral Financial Corp. ........................... 894,429 The accompanying notes are an integral part of the financial statements. 23 [LOGO OMITTED] n/i numeric investors family of funds SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 2002 - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ SAVINGS & LOAN ASSOCIATIONS--(CONTINUED) 2,400 First Essex Bancorp, Inc. ....................... $ 78,744 3,400 First Midwest Bancorp, Inc. ..................... 97,580 29,300 FirstFed Financial Corp.* ....................... 827,725 74,625 Flagstar Bancorp, Inc. .......................... 1,712,644 60,700 Greater Bay Bancorp ............................. 1,529,640 43,200 Hudson United Bancorp ........................... 1,247,616 2,500 IBERIABANK Corp. ................................ 100,000 46,900 Republic Bancorp Inc. ........................... 635,495 16,400 South Financial Group, Inc. (The) ............... 343,580 9,100 Trustmark Corp. ................................. 225,953 18,600 Webster Financial Corp. ......................... 709,404 51,700 Westcorp ........................................ 1,047,959 18,400 WSFS Financial Corp. ............................ 568,560 ----------- 13,060,273 ----------- SEMICONDUCTORS--1.7% 15,200 CoorsTek, Inc.* ................................. 326,800 45,700 MKS Instruments, Inc.* .......................... 618,778 55,900 Mykrolis Corp.* ................................. 405,834 17,800 Park Electrochemical Corp. ...................... 380,920 57,900 Pericom Semiconductor Corp.* .................... 524,574 ----------- 2,256,906 ----------- SERVICES - EMPLOYMENT AGENCIES--1.1% 22,200 CDI Corp.* ...................................... 603,840 37,000 Right Management Consultants, Inc.* ............. 808,450 ----------- 1,412,290 ----------- STEEL--0.6% 42,400 Ryerson Tull, Inc. .............................. 313,760 30,500 United States Steel Corp. ....................... 418,765 ----------- 732,525 ----------- TELECOMMUNICATIONS EQUIPMENT & SERVICES--1.6% 23,500 ADTRAN, Inc.* ................................... 408,665 15,000 Boston Communications Group, Inc.* .............. 136,065 20,600 Commonwealth Telephone Enterprises, Inc.* ....... 787,950 39,700 Plantronics, Inc.* .............................. 728,892 ----------- 2,061,572 ----------- TOBACCO--0.9% 58,400 Standard Commercial Corp. ....................... 1,113,104 ----------- - ------------------------------------------------------------------------------ VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------ TRANSPORTATION--1.2% 10,900 Covenant Transport, Inc., Class A* .............. $ 196,527 35,250 Genesee & Wyoming Inc., Class A* ................ 793,125 4,200 Landstar System, Inc.* .......................... 212,730 13,000 Ryder System, Inc. .............................. 339,820 ------------ 1,542,202 ------------ UTILITIES--6.1% 32,100 AGL Resources Inc. .............................. 737,658 77,700 Avista Corp. .................................... 988,344 4,000 CH Energy Group, Inc. ........................... 194,000 44,600 CMS Energy Corp. ................................ 470,976 19,400 Energen Corp. ................................... 514,294 28,000 Great Plains Energy Inc. ........................ 584,360 40,700 NorthWestern Corp. .............................. 518,925 19,300 NUI Corp. ....................................... 393,334 22,200 ONEOK, Inc. ..................................... 429,348 15,100 PNM Resources Inc. .............................. 333,408 9,200 SEMCO Energy, Inc. .............................. 86,020 27,500 Southern Union Co.* ............................. 368,500 57,200 Southwestern Energy Co.* ........................ 654,940 46,300 UGI Corp. ....................................... 1,627,445 ------------ 7,901,552 ------------ Total Common Stocks (Cost $129,166,986) ........................... 126,776,532 ------------ PRINCIPAL AMOUNT (000'S) - -------------- REPURCHASE AGREEMENT--2.5% $ 3,270 Bear, Stearns & Co. Inc. (Agreement dated 08/30/02 to be repurchased at $3,270,677) 1.82%, 09/03/02 (Cost $3,270,015)(Note 6) ..................... 3,270,015 ------------ Total Investments-- 99.7% (Cost $132,437,001) ........................... 130,046,547 ------------ Other Assets in Excess of Liabilities -- 0.3% ........................... 333,769 ------------ Net Assets -- 100.0% ............................ $130,380,316 ============ - ----------- * Non-income producing. The accompanying notes are an integral part of the financial statements. 24 [THIS PAGE INTENTIONALLY LEFT BLANK.] [LOGO OMITTED] n/i numeric investors family of funds STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2002
EMERGING GROWTH GROWTH MID CAP SMALL CAP VALUE FUND* FUND FUND FUND --------------- ------------ ----------- --------------- ASSETS Investments, at value (Cost - $97,168,175, $35,753,354, $26,566,920, $132,437,001, respectively) .............................. $ 97,652,497 $ 34,306,790 $25,352,399 $130,046,547 Receivable for investments sold ............... 1,628,787 538,348 665,760 3,793,177 Repurchase agreements in connection with securities lending (Note 5) ................ 4,616,748 1,547,227 255,687 818,472 Dividends and interest receivable ............. 38,177 21,215 37,203 189,087 Receivable for Fund shares sold ............... 7,844 337 13 525,617 Prepaid expenses and other assets ............. 9,578 6,175 7,190 9,445 ------------ ------------ ----------- ------------ Total assets ............................... 103,953,631 36,420,092 26,318,252 135,382,345 ------------ ------------ ----------- ------------ LIABILITIES Payable for investments purchased ............. 2,357,777 746,099 862,029 2,718,436 Payable upon return of securities loaned (Note 5) .................................... 4,616,748 1,547,227 255,687 818,472 Payable for Fund shares redeemed .............. 4,875 19,727 54,796 1,271,107 Investment advisory fee payable ............... 60,682 36,444 1,553 144,099 Accrued expenses and other liabilities ........ 48,438 36,718 35,358 49,915 ------------ ------------ ----------- ------------ Total liabilities .......................... 7,088,520 2,386,215 1,209,423 5,002,029 ------------ ------------ ----------- ------------ NET ASSETS Capital stock, $0.001 par value ............... 8,203 3,751 2,096 7,733 Additional paid-in capital .................... 106,590,951 50,087,098 32,393,930 123,524,838 Undistributed net investment income ........... -- -- 167,268 -- Accumulated net realized gain/(loss) from investments ................................ (10,218,365) (14,610,408) (6,239,944) 9,238,199 Net unrealized appreciation/(depreciation) on investments ............................. 484,322 (1,446,564) (1,214,521) (2,390,454) ------------ ------------ ----------- ------------ Net assets applicable to shares outstanding ... $ 96,865,111 $ 34,033,877 $25,108,829 $130,380,316 ============ ============ =========== ============ Shares outstanding ............................... 8,202,896 3,751,101 2,095,468 7,733,220 ------------ ------------ ----------- ------------ Net asset value, offering and redemption price per share ..................................... $11.81 $9.07 $11.98 $16.86 ====== ===== ====== ====== - ----------- * Formerly known as Micro Cap Fund.
The accompanying notes are an integral part of the financial statements. 26 [LOGO OMITTED] n/i numeric investors family of funds STATEMENTS OF OPERATIONS FOR THE FISCAL YEAR ENDED AUGUST 31, 2002
EMERGING GROWTH GROWTH MID CAP SMALL CAP VALUE FUND* FUND FUND FUND --------------- ------------ ----------- --------------- INVESTMENT INCOME Dividends** ................................... $ 299,722 $ 119,787 $ 390,361 $ 1,277,884 Interest ...................................... 77,390 15,581 13,982 59,442 Securities lending ............................ 37,612 11,540 3,668 15,782 ----------- ----------- ----------- ----------- Total investment income .................... 414,724 146,908 408,011 1,353,108 ----------- ----------- ----------- ----------- EXPENSES Advisory fees ................................. 835,355 321,716 98,542 1,324,155 Co-Administration fees ........................ 202,145 101,396 94,778 184,598 Administrative services fees .................. 167,071 56,359 42,557 147,128 Transfer agent fees and expenses .............. 53,726 49,725 59,326 55,221 Printing ...................................... 43,067 20,747 28,098 32,464 Federal and state registration fees ........... 9,926 4,769 14,320 17,810 Audit and legal fees .......................... 39,713 9,435 7,911 34,740 Custodian fees and expenses ................... 36,465 10,272 8,978 31,949 Directors' fees and expenses .................. 9,368 2,935 2,530 10,739 Other ......................................... 5,605 1,390 3,589 2,601 ----------- ----------- ----------- ----------- Total expenses before waivers and reimbursements, if any .................. 1,402,441 578,744 360,629 1,841,405 Less: waivers and reimbursements, if any ... (154,597) (72,602) (120,025) (143,975) ----------- ----------- ----------- ----------- Net expenses after waivers and reimbursements, if any .................. 1,247,844 506,142 240,604 1,697,430 ----------- ----------- ----------- ----------- Net Investment Income/(Loss) .................. (833,120) (359,234) 167,407 (344,322) ----------- ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: Net realized gain/(loss) from investments ..... 635,625 (2,221,509) (1,498,981) 9,707,831 Net change in unrealized depreciation on investments ............................. (8,936,144) (2,217,432) (1,234,846) (4,975,947) ----------- ----------- ----------- ----------- Net realized and unrealized gain/(loss) on investments ............................. (8,300,519) (4,438,941) (2,733,827) 4,731,884 ----------- ----------- ----------- ----------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................... $(9,133,639) $(4,798,175) $(2,566,420) $ 4,387,562 =========== =========== =========== =========== - ----------- * Formerly known as Micro Cap Fund. ** Net of foreign withholding taxes of $3,567, $314, $246 and $4,515 for the Emerging Growth Fund, Growth Fund, Mid Cap Fund and Small Cap Value Fund, respectively.
The accompanying notes are an integral part of the financial statements. 27 [LOGO OMITTED] n/i numeric investors family of funds STATEMENTS OF CHANGES IN NET ASSETS
EMERGING GROWTH GROWTH FUND* FUND ------------------------------ ----------------------------- FOR THE FISCAL YEARS FOR THE FISCAL YEARS ENDED AUGUST 31, ENDED AUGUST 31, ------------------------------ ----------------------------- 2002 2001 2002 2001 ------------- ------------- ------------ ------------ INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income/(loss) ........................ $ (833,120) $ (817,209) $ (359,234) $ (364,403) Net realized gain/(loss) from investments ........... 635,625 (10,311,793) (2,221,509) (12,141,975) Net change in unrealized appreciation/(depreciation) on investments ................................... (8,936,144) (14,123,542) (2,217,432) (15,122,359) ------------ ------------ ----------- ------------ Net increase/(decrease) in net assets resulting from operations .................................. (9,133,639) (25,252,544) (4,798,175) (27,628,737) ------------ ------------ ----------- ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income ............................... -- -- -- -- Net realized capital gains .......................... -- (29,436,632) -- (21,857,830) ------------ ------------ ----------- ------------ Total dividends and distributions to shareholders ... -- (29,436,632) -- (21,857,830) ------------ ------------ ----------- ------------ INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) .................. (33,927,799) 60,082,666 (1,098,115) 9,896,402 ------------ ------------ ----------- ------------ Total increase/(decrease) in net assets ............. (43,061,438) 5,393,490 (5,896,290) (39,590,165) NET ASSETS Beginning of year ................................... 139,926,549 134,533,059 39,930,167 79,520,332 ------------ ------------ ----------- ------------ End of year** ....................................... $ 96,865,111 $139,926,549 $34,033,877 $ 39,930,167 ============ ============ =========== ============ - ----------- * Formerly known as Micro Cap Fund. ** Includes undistributed net investment income as follows:
FOR THE FISCAL YEARS ENDED AUGUST 31, ----------------------------- 2002 2001 ----------- ------------ Mid Cap Fund ........................................ $167,268 $144,990 Small Cap Value Fund ................................ -- 38,630
The accompanying notes are an integral part of the financial statements. 28
MID CAP SMALL CAP VALUE FUND FUND ------------------------------ ----------------------------- FOR THE FISCAL YEARS FOR THE FISCAL YEARS ENDED AUGUST 31, ENDED AUGUST 31, ------------------------------ ----------------------------- 2002 2001 2002 2001 ------------ ------------ ------------ ------------ INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income/(loss) ........................ $ 167,407 $ 145,092 $ (344,322) $ 38,689 Net realized gain/(loss) from investments ........... (1,498,981) (4,234,284) 9,707,831 5,978,356 Net change in unrealized appreciation/(depreciation) on investments ................................... (1,234,846) (3,240,263) (4,975,947) 1,215,166 ----------- ------------ ------------ ----------- Net increase/(decrease) in net assets resulting from operations .................................. (2,566,420) (7,329,455) 4,387,562 7,232,211 ----------- ------------ ------------ ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income ............................... (145,129) (175,009) (38,820) (149,957) Net realized capital gains .......................... -- (7,016,619) (5,799,905) -- ----------- ------------ ------------ ----------- Total dividends and distributions to shareholders ... (145,129) (7,191,628) (5,838,725) (149,957) ----------- ------------ ------------ ----------- INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ................. (3,377,823) 1,289,121 96,267,850 15,000,608 ----------- ------------ ------------ ----------- Total increase/(decrease) in net assets ............. (6,089,372) (13,231,962) 94,816,687 22,082,862 NET ASSETS Beginning of year ................................... 31,198,201 44,430,163 35,563,629 13,480,767 ----------- ------------ ------------ ----------- End of year** ....................................... $25,108,829 $ 31,198,201 $130,380,316 $35,563,629 =========== ============ ============ =========== - ----------- * Formerly known as Micro Cap Fund. ** Includes undistributed net investment income as follows:
29 [LOGO OMITTED] n/i numeric investors family of funds FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------ Contained below is per share operating performance data for each share outstanding, total investment return, ratios to average net assets and other supplemental data for the respective years. This information has been derived from information provided in the financial statements. - ------------------------------------------------------------------------------
EMERGING GROWTH FUND* ---------------------------------------------------------------------------- FOR THE FISCAL YEARS ENDED AUGUST 31, ---------------------------------------------------------------------------- 2002 2001 2000 1999 1998 ------- -------- -------- ------- ------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of year ............... $ 12.73 $ 20.99 $ 18.03 $ 12.52 $ 18.47 ------- -------- -------- ------- ------- Net investment loss .............................. (0.10) (0.07) (0.10) (0.18) (0.07) Net realized and unrealized gain/(loss) on investments and futures transactions, if any(1) (0.82) (3.58) 7.39 6.72 (3.23) ------- -------- -------- ------- ------- Net increase/(decrease) in net assets resulting from operations ............................... (0.92) (3.65) 7.29 6.54 (3.30) ------- -------- -------- ------- ------- Distributions to shareholders from: Net realized capital gains ....................... -- (4.61) (4.33) (1.03) (2.65) ------- -------- -------- ------- ------- Net asset value, end of year ..................... $ 11.81 $ 12.73 $ 20.99 $ 18.03 $ 12.52 ======= ======== ======== ======= ======= Total investment return(2) ....................... (7.23)% (20.16)% 54.42% 56.09% (20.74)% ======= ======== ======== ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's omitted) .......... $96,865 $139,927 $134,533 $76,349 $99,266 Ratio of expenses to average net assets(3) ....... 1.12% 1.07% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and expense reimbursements, if any .... 1.26% 1.25% 1.28% 1.26% 1.23% Ratio of net investment loss to average net assets(3) ................................. (0.75)% (0.67)% (0.55)% (0.46)% (0.41)% Portfolio turnover rate .......................... 216.40% 280.00% 297.08% 316.02% 408.70% - ----------- * Formerly known as Micro Cap Fund. (1) The amounts shown for a share outstanding throughout the respective periods are not in accord with the changes in the aggregate gains and losses on investments during the respective periods because of the timing of the sales and repurchases of fund shares in relation to fluctuating net asset values during the respective periods. (2) Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total investment returns are not annualized. (3) Reflects waivers and expense reimbursements, if any.
The accompanying notes are an integral part of the financial statements. 30
GROWTH FUND -------------------------------------------------------------------------- FOR THE FISCAL YEARS ENDED AUGUST 31, ------------------------------------------------------------------------- 2002 2001 2000 1999 1998 ------- ------- ------- ------- ------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of year ............... $ 10.48 $ 23.69 $ 14.89 $ 9.75 $ 16.29 ------- ------- ------- ------- ------- Net investment loss .............................. (0.10) (0.10) (0.12) (0.18) (0.07) Net realized and unrealized gain/(loss) on investments and futures transactions, if any(1) (1.31) (6.59) 9.29 5.33 (3.98) ------- ------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations ............................... (1.41) (6.69) 9.17 5.15 (4.05) ------- ------- ------- ------- ------- Distributions to shareholders from: Net realized capital gains ....................... -- (6.52) (0.37) (0.01) (2.49) ------- ------- ------- ------- ------- Net asset value, end of year ..................... $ 9.07 $ 10.48 $ 23.69 $ 14.89 $ 9.75 ======= ======= ======= ======= ======= Total investment return(2) ....................... (13.45)% (36.45)% 63.11% 52.80% (29.03)% ======= ======= ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's omitted) .......... $34,034 $39,930 $79,520 $62,376 $77,840 Ratio of expenses to average net assets(3) ....... 1.35% 1.08% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and expense reimbursements, if any .... 1.54% 1.36% 1.32% 1.30% 1.24% Ratio of net investment loss to average net assets(3) ................................. (0.96)% (0.70)% (0.59)% (0.45)% (0.50)% Portfolio turnover rate .......................... 241.28% 271.29% 228.69% 309.60% 338.40% - ----------- * Formerly known as Micro Cap Fund. (1) The amounts shown for a share outstanding throughout the respective periods are not in accord with the changes in the aggregate gains and losses on investments during the respective periods because of the timing of the sales and repurchases of fund shares in relation to fluctuating net asset values during the respective periods. (2) Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total investment returns are not annualized. (3) Reflects waivers and expense reimbursements, if any.
31 [LOGO OMITTED] n/i numeric investors family of funds FINANCIAL HIGHLIGHTS (CONCLUDED) - -------------------------------------------------------------------------------- Contained below is per share operating performance data for each share outstanding, total investment return, ratios to average net assets and other supplemental data for the respective periods. This information has been derived from information provided in the financial statements. - --------------------------------------------------------------------------------
MID CAP FUND -------------------------------------------------------------------- For the Fiscal Years Ended August 31, -------------------------------------------------------------------- 2002 2001 2000 1999 1998 ------- ------- ------- ------- -------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ............. $ 13.16 $ 19.22 $ 16.89 $ 13.30 $ 17.16 ------- ------- ------- ------- -------- Net investment income/(loss) ..................... 0.08 0.06 0.08 0.05 0.05 Net realized and unrealized gain/(loss) on investments and futures transactions, if any(1) (1.22) (2.98) 4.25 4.97 (1.24) ------- ------- ------- ------- -------- Net increase/(decrease) in net assets resulting from operations ............................... (1.14) (2.92) 4.33 5.02 (1.19) ------- ------- ------- ------- -------- Dividends and distributions to shareholders from: Net investment income ............................ (0.06) (0.08) (0.03) (0.06) (0.06) Net realized capital gains ....................... -- (3.06) (1.97) (1.37) (2.61) ------- ------- ------- ------- -------- Total dividends and distributions to shareholders (0.06) (3.14) (2.00) (1.43) (2.67) ------- ------- ------- ------- -------- Redemption fees (Note 4) ......................... 0.02 -- -- -- -- ------- ------- ------- ------- -------- Net asset value, end of period ................... $ 11.98 $ 13.16 $ 19.22 $ 16.89 $ 13.30 ======= ======= ======= ======= ======== Total investment return(2) ....................... (8.48)% (17.42)% 29.61% 41.61% (8.97)% ======= ======= ======= ======= ======== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ........ $25,109 $31,198 $44,430 $49,156 $110,176 Ratio of expenses to average net assets(3) ....... 0.85% 0.91% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and expense reimbursements, if any .... 1.27% 1.39% 1.61% 1.33% 1.26% Ratio of net investment income/(loss) to average net assets(3) ................................. 0.59% 0.39% 0.40% 0.31% 0.36% Portfolio turnover rate .......................... 270.77% 318.28% 378.17% 384.71% 341.73% - ----------- * Commencement of operations. (1) The amounts shown for a share outstanding throughout the respective periods are not in accord with the changes in the aggregate gains and losses on investments during the respective periods because of the timing of the sales and repurchases of fund shares in relation to fluctuating net asset values during the respective periods. (2) Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total investment returns are not annualized. (3) Reflects waivers and expense reimbursements, if any. (4) Annualized.
The accompanying notes are an integral part of the financial statements. 32
SMALL CAP VALUE FUND --------------------------------------------------------- FOR THE PERIOD FOR THE FISCAL YEARS ENDED AUGUST 31, NOVEMBER 30, 1998* -------------------------------------- THROUGH 2002 2001 2000 AUGUST 31, 1999 -------- ------- ------- ----------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ............. $ 17.61 $ 12.91 $ 12.86 $ 12.00 -------- ------- ------- ------- Net investment income/(loss) ..................... (0.05) 0.02 0.15 0.10 Net realized and unrealized gain/(loss) on investments and futures transactions, if any(1) 1.71 4.79 1.32 0.76 -------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations ............................... 1.66 4.81 1.47 0.86 -------- ------- ------- ------- Dividends and distributions to shareholders from: Net investment income ............................ (0.02) (0.14) (0.10) -- Net realized capital gains ....................... (2.58) -- (1.32) -- -------- ------- ------- ------- Total dividends and distributions to shareholders (2.60) (0.14) (1.42) -- -------- ------- ------- ------- Redemption fees (Note 4) ......................... 0.19 0.03 -- -- -------- ------- ------- ------- Net asset value, end of period ................... $ 16.86 $ 17.61 $ 12.91 $ 12.86 ======== ======= ======= ======= Total investment return(2) ....................... 13.31% 37.97% 13.94% 7.17% ======== ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ........ $130,380 $35,564 $13,481 $11,498 Ratio of expenses to average net assets(3) ....... 1.73% 1.67% 1.00% 1.00%(4) Ratio of expenses to average net assets without waivers and expense reimbursements, if any .... 1.88% 2.14% 2.34% 2.59%(4) Ratio of net investment income/(loss) to average net assets(3) ................................. (0.35)% 0.17% 1.35% 1.15%(4) Portfolio turnover rate .......................... 275.73% 277.28% 256.28% 212.55% - ----------- * Commencement of operations. (1) The amounts shown for a share outstanding throughout the respective periods are not in accord with the changes in the aggregate gains and losses on investments during the respective periods because of the timing of the sales and repurchases of fund shares in relation to fluctuating net asset values during the respective periods. (2) Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total investment returns are not annualized. (3) Reflects waivers and expense reimbursements, if any. (4) Annualized.
33 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES The RBB Fund, Inc. ("RBB") was incorporated under the laws of the State of Maryland on February 29, 1988, and is registered under the Investment Company Act of 1940, as amended, (the "Investment Company Act") as an open-end management investment company. RBB is a "series fund," which is a mutual fund divided into separate portfolios. Each portfolio is treated as a separate entity for certain matters under the Investment Company Act, and for other purposes, and a shareholder of one portfolio is not deemed to be a shareholder of any other portfolio. Currently RBB has thirteen investment portfolios, including the N/I NUMERIC INVESTORS FAMILY OF FUNDS ("n/i numeric investors Family") which consists of four diversified portfolios: N/I NUMERIC INVESTORS Emerging Growth Fund (formerly the "Micro Cap Fund") ("Emerging Growth Fund"), N/I NUMERIC INVESTORS Growth Fund ("Growth Fund"), N/I NUMERIC INVESTORS Mid Cap Fund ("Mid Cap Fund") and N/I NUMERIC INVESTORS Small Cap Value Fund ("Small Cap Value Fund") (each a "Fund," collectively the "Funds"). RBB has authorized capital of thirty billion shares of common stock of which 21.073 billion are currently classified into ninety-five classes of Common Stock. Each class represents an interest in an active or inactive RBB investment portfolio. The active classes have been grouped into six separate "families," all of which have begun investment operations. USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. PORTFOLIO VALUATION -- The net asset value of each Fund is calculated as of the close of regular trading on the NYSE on each business day. Each Fund's securities are valued at the last reported sales price on the national securities exchange or national securities market on which such shares are primarily traded. If no sales are reported, and in the case of some securities traded over-the-counter, portfolio securities are valued at the mean between the last reported bid and asked prices. Securities for which market quotations are not readily available are valued at fair market value as determined in good faith by or under the direction of RBB's Board of Directors. With the approval of RBB's Board of Directors, each Fund may use a pricing service, bank or broker-dealer experienced in such matters to value its securities. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates market value. REPURCHASE AGREEMENTS -- Each Fund has agreed to purchase securities from financial institutions subject to the seller's agreement to repurchase them at an agreed-upon time and price ("repurchase agreements"). The financial institutions with whom each Fund enters into repurchase agreements are banks and broker/dealers, which Numeric Investors L.P.(R) (the Funds' "Adviser" or "Numeric") considers creditworthy. The seller under a repurchase agreement will be required to maintain the value of the securities as collateral, subject to the agreement at not less than the repurchase price plus accrued interest. Numeric marks to market daily the value of the collateral, and, if necessary, requires the seller to deposit additional collateral by the next business day, so that the value of the collateral is not less than the repurchase price. Default by or bankruptcy of the seller would, however, expose each Fund to possible loss because of adverse market action or delays in connection with the disposition of the underlying securities. 34 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- The Funds record security transactions based on trade date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes in determining realized gains and losses on investments. Interest income is accrued when earned. Dividend income is recorded on the ex-dividend date. Expenses incurred on behalf of a specific fund or fund family are charged directly to the fund or fund family (in proportion to net assets). Expenses incurred for all of the RBB families (such as director or professional fees) are charged to all funds in proportion to their net assets of the RBB Funds. Expenses and fees, including investment advisory and administration fees are accrued daily and taken into account for the purpose of determining the net asset value of the Funds. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income and from net realized capital gains, if any, will be declared and recorded on the ex-dividend date and paid at least annually to shareholders. Income and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences can include the treatment of non-taxable dividends, expiring capital loss carryforwards, foreign currency gain/loss, and losses deferred due to wash sales and excise tax regulations. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications within the composition of net assets. As of August 31, 2002, the following Funds recorded reclassifications that increase/(decrease) the accounts listed below:
ACCUMULATED NET REALIZED NET INVESTMENT GAIN/(LOSS) ADDITIONAL PAID-IN FUND LOSS FROM INVESTMENTS CAPITAL -------------- ---------------- ----------------------- Emerging Growth Fund ............. $833,120 $ 236,731 $(1,069,851) Growth Fund ...................... 359,234 -- (359,234) Small Cap Value Fund ............. 344,512 (344,512) --
U.S. TAX STATUS -- No provision is made for U.S. income taxes as it is each Fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to its shareholders which will be sufficient to relieve it from U.S. federal income and all excise taxes. 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Numeric serves as each Fund's investment adviser. Numeric is entitled to a performance-based fee for its advisory services for the Growth, Mid Cap and Small Cap Value Funds calculated at the end of each month using a basic fee of 0.85% of average daily net assets and a performance fee adjustment based on each Fund's performance during the last rolling 12-month period. Each Fund's net performance is compared with the performance of its benchmark index during that same rolling 12-month period. When a Fund's performance is at least 5.00% better than its benchmark, it would pay Numeric more than the basic fee. If a Fund did not perform at least 4.00% better than its benchmark, Numeric would be paid less than 35 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) the basic fee. Each 1.00% of the difference in performance between a Fund and its benchmark plus 4.00% during the performance period would result in a 0.10% adjustment to the basic fee. The maximum annualized performance adjustment rate would be + or - 0.50% of average daily net assets which would be added to or deducted from the basic fee. Numeric is entitled to receive 0.75% of the Emerging Growth Fund's (formerly Micro Cap Fund) average daily net assets, computed daily and payable monthly for its advisory services. Numeric has agreed that until December 31, 2002, it will waive its advisory fee and/or reimburse expenses (other than brokerage commissions, extraordinary items, interest and taxes) in an aggregate amount equal to the amount by which the Growth, Mid Cap and/or Small Cap Value Funds' total operating expenses (other than investment advisory fees, brokerage commissions, extraordinary items, interest and taxes) exceeds a total operating expense ratio (other than investment advisory fees, brokerage commissions, extraordinary items, interest and taxes) of 0.50% of such Fund's average daily net assets. Numeric has agreed that until December 31, 2002, it will limit the Emerging Growth Fund's (formerly Micro Cap Fund) total expenses to the extent that such expenses exceed 1.25% of average daily net assets. As necessary, these limitations were effected in waivers of advisory fees and reimbursements of expenses exceeding the advisory fee. For the fiscal year ended August 31, 2002, investment advisory fees, waivers and reimbursements of expenses were as follows:
TOTAL NET EXPENSE FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT - ---- ------------- --------- ------------- ------------- Emerging Growth Fund ............ $ 835,355 -- $ 835,355 -- Growth Fund ..................... 321,716 $(23,912) 297,804 -- Mid Cap Fund .................... 98,542 (81,898) 16,644 $834 Small Cap Value Fund ............ 1,324,155 (4,209) 1,319,946 --
The Funds will not pay Numeric at a later time for any amounts it may waive or any amounts, which Numeric has assumed. PFPC Inc. ("PFPC"), a wholly-owned subsidiary of PFPC Worldwide, Inc. and an indirect majority-owned subsidiary of The PNC Financial Services Group, and Bear Stearns Funds Management Inc. ("BSFM"), a wholly-owned subsidiary of The Bear Stearns Companies Inc., serve as co-administrators for each Fund. For providing administrative services PFPC is entitled to receive a monthly fee equal to an annual rate of 0.125% of each Fund's average daily net assets subject to a minimum monthly fee of $6,250 per Fund. BSFM is entitled to receive a monthly fee equal to an annual rate of 0.05% on the first $150 million and 0.02% of each Fund's average daily net assets thereafter. 36 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the fiscal year ended August 31, 2002, PFPC, at its discretion, voluntarily agreed to waive a portion of its administration fees. During such period, PFPC's co-administration fees and related waivers were as follows:
TOTAL PFPC PFPC NET PFPC FUND CO-ADMINISTRATION FEES WAIVERS CO-ADMINISTRATION FEES - ---- ---------------------- --------- ---------------------- Emerging Growth Fund ................ $146,455 $ (8,891) $137,564 Growth Fund ......................... 82,610 (2,083) 80,527 Mid Cap Fund ........................ 80,592 (2,084) 78,508 Small Cap Value Fund ................ 136,914 (11,831) 125,083
In addition, PFPC serves as each Fund's transfer and dividend disbursing agent. For the fiscal year ended August 31, 2002, transfer agency fees were $53,726, $49,725, $59,326 and $55,221 for the Emerging Growth Fund, Growth Fund, Mid Cap Fund and Small Cap Value Fund, respectively. PFPC Distributors, Inc. ("PFPC Distributors"), a wholly-owned subsidiary of PFPC Worldwide, Inc. and an indirect majority-owned subsidiary of The PNC Financial Services Group, Inc., provides certain administrative services to each Fund. As compensation for such administrative services, PFPC Distributors received a monthly fee equal to an annual rate of 0.15% of each Fund's average daily net assets. For the fiscal year ended August 31, 2002, PFPC Distributors, at its discretion, voluntarily agreed to waive a portion of its administrative services fees for each Fund. During such period, administrative services fees were as follows:
TOTAL ADMINISTRATIVE NET ADMINISTRATIVE FUND SERVICES FEES WAIVERS SERVICES FEES - ---- -------------- ---------- ------------------ Emerging Growth Fund ................ $167,071 $(145,706) $21,365 Growth Fund ......................... 56,359 (46,607) 9,752 Mid Cap Fund ........................ 42,557 (35,209) 7,348 Small Cap Value Fund ................ 147,128 (127,935) 19,193
3. INVESTMENT IN SECURITIES For the fiscal year ended August 31, 2002, aggregate purchases and sales of investment securities (excluding short-term investments) were as follows:
FUND PURCHASES SALES - ---- ------------ ------------ Emerging Growth Fund ................ $235,479,612 $268,028,256* Growth Fund ......................... 81,922,980 84,048,150 Mid Cap Fund ........................ 74,968,233 77,827,170 Small Cap Value Fund ................ 347,913,878 260,418,973
- ----------- * $15,539,465 of the aggregate sales was due to an in-kind redemption. 37 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) 4. CAPITAL SHARE TRANSACTIONS As of August 31, 2002, each Fund has 50,000,000 shares of $0.001 par value capital stock authorized. Transactions in capital shares for the respective periods were as follows:
EMERGING GROWTH FUND ----------------------------------------------------------------- FOR THE FOR THE FISCAL YEAR ENDED FISCAL YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 ----------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------ --------- ------------ Sales ................. 1,337,023 $ 17,701,165 3,534,734 $ 43,635,108 Repurchases ........... (2,706,477) (35,503,100) (940,688) (12,605,335) In-kind redemption .... (1,423,289) (16,125,864) -- -- Reinvestments ......... -- -- 1,992,654 29,052,893 ---------- ------------ --------- ------------ Net increase/(decrease) (2,792,743) $(33,927,799) 4,586,700 $ 60,082,666 ========== ============ ========= ============ GROWTH FUND ----------------------------------------------------------------- FOR THE FOR THE FISCAL YEAR ENDED FISCAL YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 ----------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------ --------- ------------ Sales ................. 296,000 $ 2,616,826 129,828 $ 2,168,596 Repurchases ........... (356,125) (3,714,941) (1,119,565) (13,852,583) Reinvestments ......... -- -- 1,444,470 21,580,389 ---------- ------------ --------- ------------ Net increase/(decrease) (60,125) $ (1,098,115) 454,733 $ 9,896,402 ========== ============ ========= ============ MID CAP FUND ----------------------------------------------------------------- FOR THE FOR THE FISCAL YEAR ENDED FISCAL YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 ----------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------ --------- ------------ Sales ................. 480,281 $ 6,158,580 178,361 $ 2,663,341 Repurchases ........... (766,504) (9,678,272) (580,438) (8,377,001) Reinvestments ......... 11,764 141,869 460,709 7,002,781 ---------- ------------ --------- ------------ Net increase/(decrease) (274,459) $ (3,377,823) 58,632 $ 1,289,121 ========== ============ ========= ============
38 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SMALL CAP VALUE FUND ----------------------------------------------------------------- FOR THE FOR THE FISCAL YEAR ENDED FISCAL YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 ----------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------ --------- ------------ Sales ................. 10,892,105 $187,038,373 1,257,323 $ 19,745,562 Repurchases ........... (5,580,966) (96,476,291) (294,237) (4,894,868) Reinvestments ......... 402,382 5,705,768 12,031 149,914 ---------- ------------ --------- ------------ Net increase .......... 5,713,521 $ 96,267,850 975,117 $ 15,000,608 ========== ============ ========= ============
Effective August 12, 2002, there is a 2.00% redemption fee on shares redeemed which have been held for less than one year on each of the Funds. For shares purchased prior to August 12, 2002, there was a 1.50% redemption fee on shares redeemed which have been held for less than one year on each of the Funds. Shares purchased prior to December 18, 2001, and held for less than six months were subject to a 1.00% redemption fee. For the fiscal year ended August 31, 2002, these fees amounted to $31,914, $619, $42,795 and $1,069,741 for the Emerging Growth Fund, Growth Fund, Mid Cap Fund and Small Cap Value Fund, respectively. The redemption fees are collected and retained by each Fund for the benefit of the remaining shareholders and recorded as additional paid-in capital. On September 18, 2001, the Emerging Growth Fund transferred securities in the amount of $15,539,465 due to an in-kind redemption. For purposes of generally accepted accounting principles, this transaction was treated as a sale of securities and the resulting gains and losses were recognized based on the market value of the securities on the date of the transfer. For tax purposes, no gains or losses were recognized. The result was a permanent loss of $236,731. 5. SECURITIES LENDING Loans of securities are required at all times to be secured by collateral equal to at least 100% of the market value of the securities on loan. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. In the event that the borrower fails to return securities, and collateral being maintained by the lender is insufficient to cover the value of loaned securities, the borrower is obligated to pay the amount of the shortfall (and interest thereon) to the Funds. However, there can be no assurance the Funds can recover this amount. The value of securities on loan to brokers and the related collateral received at August 31, 2002, were as follows: VALUE OF FUND SECURITIES ON LOAN VALUE OF COLLATERAL - ---- ------------------ ------------------- Emerging Growth Fund ............ $16,213,253 $16,449,063 Growth Fund ..................... 2,629,892 2,652,018 Mid Cap Fund .................... 641,888 653,412 Small Cap Value Fund ............ 9,212,847 9,386,129 39 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) Collateral received from securities out on loan to broker/dealers is in the form of U.S. Treasury securities and cash with any cash collateral received invested into repurchase agreements with Bear, Stearns & Co. Inc., which in turn are collateralized by various U.S. Treasury securities. Repurchase agreements in connection with securities lending at August 31, 2002 are listed below:
EMERGING GROWTH FUND ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST PROCEEDS TOTAL VALUE ---------- ------------- -------- ------------ -------- ---------- ----------- Repurchase Agreement ................... $4,617 1.820% 09/03/02 $4,616,748 $ 467 $4,617,215 -- Related Collateral: United States Treasury Note........ 4,365 3.625 01/15/08 4,689,625 20,218 -- $4,709,843 GROWTH FUND ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST PROCEEDS TOTAL VALUE ---------- ------------- -------- ------------ -------- ---------- ----------- Repurchase Agreement ................... $1,547 1.820% 09/03/02 $1,547,227 $ 156 $1,547,383 -- Related Collateral: United States Treasury Note ....... 1,430 3.875 01/15/09 1,572,771 7,081 -- $1,579,852 MID CAP FUND ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST PROCEEDS TOTAL VALUE ---------- ------------- -------- ------------ -------- ---------- ----------- Repurchase Agreement ................... $ 256 1.820% 09/03/02 $ 255,687 $ 26 $ 255,713 -- Related Collateral: United States Treasury Note ....... 240 3.875 01/15/09 263,962 1,188 -- $ 265,150 SMALL CAP VALUE FUND ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST PROCEEDS TOTAL VALUE ---------- ------------- -------- ------------ -------- ---------- ----------- Repurchase Agreement ................... $818 1.820% 09/03/02 $818,472 $83 $818,555 -- Related Collateral: United States Treasury Note ....... 760 3.875 01/15/09 835,878 3,763 -- $839,641
40 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) 6. COLLATERAL FOR REPURCHASE AGREEMENTS Listed below is the collateral associated with the repurchase agreements with Bear, Stearns & Co. Inc., outstanding at August 31, 2002:
EMERGING GROWTH FUND ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE - ------ ---------- ------------- -------- ------------ -------- ------------ United States Treasury Note ............ $3,370 3.625% 01/15/08 $ 3,620,627 $15,609 $ 3,636,236 United States Treasury Note ............ 840 3.875 01/15/09 923,866 4,159 928,025 ----------- ------- ---------- $ 4,544,493 $19,768 $ 4,564,261 =========== ======= =========== GROWTH FUND ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE - ------ ---------- ------------- -------- ------------ -------- ------------ United States Treasury Note ............ $1,570 3.875% 01/15/09 $ 1,726,749 $ 7,773 $ 1,734,522 =========== ======= =========== MID CAP FUND ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE - ------ ---------- ------------- -------- ------------ -------- ------------ United States Treasury Note ............ $ 585 3.875% 01/15/09 $ 643,406 $ 2,897 $ 646,303 =========== ======= =========== SMALL CAP VALUE FUND ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE - ------ ---------- ------------- -------- ------------ -------- ------------ United States Treasury Note ............ $3,020 3.875% 01/15/09 $ 3,321,517 $14,953 $ 3,336,470 =========== ======= ===========
41 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) 7. FEDERAL INCOME TAX INFORMATION At August 31, 2002, Federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by each Fund were as follows:
NET UNREALIZED FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION/ FUND COST APPRECIATION DEPRECIATION DEPRECIATION - ---- ------------ ------------ ------------ -------------- Emerging Growth Fund ............................ $ 98,051,529 $7,593,753 $(7,992,785) $(399,032) Growth Fund ..................................... 36,027,507 2,364,955 (4,085,672) (1,720,717) Mid Cap Fund .................................... 26,832,370 1,204,555 (2,684,526) (1,479,971) Small Cap Value Fund ............................ 133,273,638 5,795,762 (9,022,853) (3,227,091)
As of August 31, 2002, the components of distributable earnings on a tax basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED ORDINARY LONG-TERM FUND INCOME GAINS - ---- ------------- ------------- Emerging Growth Fund ........................................................... -- -- Growth Fund .................................................................... -- -- Mid Cap Fund ................................................................... $ 167,268 -- Small Cap Value Fund ........................................................... 8,972,231 $1,102,604
At August 31, 2002, the Funds had capital loss carryforwards available to offset future capital gains through the indicated expiration dates:
EXPIRING AUGUST 31, FUND 2009 2010 - ---- ---------- ----------- Emerging Growth Fund ........................................................... $2,130,088 $ 7,204,921 Growth Fund .................................................................... 1,057,047 13,200,351 Mid Cap Fund ................................................................... 506,551 5,467,943 Small Cap Value Fund ........................................................... -- --
Under Federal tax law, foreign currency and capital losses realized after October 31 may be deferred and treated as having arisen on the first day of the following fiscal year. For the fiscal year ended August 31, 2002, the Growth Fund incurred post-October capital losses of $78,857. The differences between the book and tax basis components of distributable earnings relate principally to the timing of recognition of income and gains for federal income tax purposes. Short-term and foreign currency gains are reported as ordinary income for federal tax purposes. 42 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (CONCLUDED) The tax character of dividends and distributions paid during the last two fiscal years were as follows:
ORDINARY LONG-TERM FUND INCOME GAINS TOTAL - ---- ----------- ---------- ----------- Emerging Growth Fund 2002 -- -- -- 2001 $28,101,243 $1,335,389 $29,436,632 Growth Fund 2002 -- -- -- 2001 20,443,280 1,414,550 21,857,830 Mid Cap Fund 2002 145,129 -- 145,129 2001 7,191,628 -- 7,191,628 Small Cap Value Fund 2002 4,929,706 909,019 5,838,725 2001 149,957 -- 149,957
43 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND REPORT OF INDEPENDENT ACCOUNTANTS TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF THE RBB FUND, INC.: In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of n/i numeric investors Emerging Markets Fund (formerly n/i numeric investors Micro Cap Fund), n/i numeric investors Growth Fund, n/i numeric investors Mid Cap Fund and n/i numeric investors Small Cap Value Fund, separately managed portfolios of The RBB Fund, Inc. (the "Fund"), at August 31, 2002, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2002, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania October 16, 2002 44 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND SHAREHOLDER TAX INFORMATION -- (UNAUDITED) Each Fund is required by Subchapter M of the Internal Revenue Code of 1986, as amended, to advise its shareholders within 60 days of each Fund's fiscal year (August 31, 2002) as to the U.S. federal tax status of distributions received by each Fund's shareholders in respect of such fiscal year. During the fiscal year ended August 31, 2002, the following dividends and distributions per share were paid by each of the Funds: ORDINARY INCOME (39.6%) --------------------------- NET INVESTMENT SHORT-TERM LONG-TERM FUND INCOME GAINS GAINS (20%) - ---- -------------- ---------- ----------- Emerging Growth Fund .......... -- -- -- Growth Fund ................... -- -- -- Mid Cap Fund .................. $0.0640 -- -- Small Cap Value Fund .......... 0.0173 $2.1796 $0.4051 The percentage of total ordinary income dividends from the Mid Cap and Small Cap Value Funds qualifying for the corporate dividends received deduction is 100% and 23.83%, respectively. These amounts were reported to shareholders as income in 2001. Because each Fund's fiscal year is not the calendar year, another notification will be sent with respect to calendar year 2002. The second notification, which will reflect the amount, if any, to be used by calendar year taxpayers on their U.S. federal income tax returns, will be made in conjunction with Form 1099-DIV and will be mailed in January 2003. Foreign shareholders will generally be subject to U.S. withholding tax on the amount of their dividend. They will generally not be entitled to a foreign tax credit or deduction for the withholding taxes paid by the Funds, if any. In general, dividends received by tax-exempt recipients (e.g. IRA's and Keoghs) need not be reported as taxable income for U.S. federal income tax purposes. However, some retirement trusts (e.g. corporate, Keogh and 403(b)(7) plans) may need this information for their annual information reporting. Shareholders are advised to consult their own tax advisers with respect to the tax consequences of their investment in the Funds. 45 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND SHAREHOLDER VOTING RESULTS (UNAUDITED) On August 30, 2002 a meeting of shareholders of The RBB Fund, Inc. (the "Fund") was held. The purpose of the meeting was to elect the following individuals as directors of the Fund: Julian A. Brodsky J. Richard Carnall Francis J. McKay Arnold M. Reichman Robert Sablowsky Marvin E. Sternberg The results were as follows:
SHARES VOTED SHARES VOTED SHARES TOTAL SHARE DIRECTOR IN FAVOR AGAINST ABSTAINED VOTES ---------------------- --------------- ------------ ----------- --------------- Julian A. Brodsky 211,501,409.867 0 498,490.822 211,999,900.689 J. Richard Carnall 211,476,781.686 0 523,119.003 211,999,900.689 Francis J. McKay 211,582,965.318 0 416,935.371 211,999,900.689 Arnold M. Reichman 211,544,328.943 0 455,571.746 211,999,900.689 Robert Sablowsky 211,574,208.446 0 425,692.243 211,999,900.689 Marvin E. Sternberg 211,510,809.394 0 489,091.295 211,999,900.689
46 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND PRIVACY NOTICE -- (UNAUDITED) The N/I NUMERIC INVESTORS FAMILY OF FUNDS of The RBB Fund, Inc. (the "Fund") is committed to protecting the confidentiality and security of your private investment records and personal information. Our policies and procedures are designed to safeguard your information and to permit only appropriate and authorized access to and use of this information. In order to carry out the functions necessary to service your investment account, our service providers collect certain nonpublic personal information from you from the following sources: o Information we receive from you over the telephone, on applications, e-mails or other forms (e.g., your name, social security number and address); and o Information about your transactions with the Fund We restrict access to your personal and account information to those service providers and their employees who need to know that information to service your account. The Fund may also share all of the information (as described above) that we collect with companies that perform marketing services on our behalf or with other financial institutions with whom we have joint marketing agreements who may suggest additional Fund services or other investment products which may be of interest to you. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information. You can be assured that the Fund considers your data to be private and confidential, and we will not disclose any nonpublic personal information about you to any unaffiliated third parties, except as permitted by law. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice. If you have any questions or comments about our privacy practices, please call us at (800) 348-5031. October 2002 47 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND FUND MANAGEMENT (UNAUDITED) Information pertaining to the Directors and Officers of the Fund is set forth below. The statement of additional information (SAI) includes additional information about the Directors and is available without charge, upon request, by calling (800) 348-5031.
NUMBER OF PRINCIPAL PORTFOLIOS POSITION(S) TERM OF OFFICE OCCUPATION(S) FUND COMPLEX OTHER NAME, ADDRESS, HELD AND LENGTH OF DURING PAST OVERSEEN BY DIRECTORSHIPS AND AGE WITH FUND TIME SERVED 5 YEARS DIRECTOR HELD BY DIRECTOR - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT DIRECTORS - ------------------------------------------------------------------------------------------------------------------------------------ Julian A. Brodsky - 69 Director - Until successor is Director and Vice Chairman, 13 Director, Comcast Comcast Corporation elected and Comcast Corporation (cable Corporation 1500 Market Street, 35th Fl. qualified or until television and Philadelphia, PA 19102 his death, communications); Director, NDS resignation or Group PLC (provider of systems removal. and applications for digital - 1988 to present pay TV) since 1969. - ------------------------------------------------------------------------------------------------------------------------------------ Francis J. McKay - 66 Director - Until successor is Executive Vice President, Fox 13 None Fox Chase Cancer Center elected and Chase Cancer Center 7701 Burholme Avenue qualified or until (biomedical research and Philadelphia, PA 19111 his death, medical care) since 1963. resignation or removal. - 1988 to present - ------------------------------------------------------------------------------------------------------------------------------------ Arnold M. Reichman - 54 Director - Until successor is Director, Gabelli Partners, 13 None 106 Pierreport Street elected and L.P. (an investment Brooklyn, NY 11201 qualified or until partnership) since December his death, 2000; Chief Operating Officer resignation or and member of the Board of removal. Directors of Outercurve - 1991 to present Technologies (wireless enabling services) until April 2001; Chief Operating Officer and member of the Executive Operating Committee of Warburg Pincus Asset Management, Inc.; Executive Officer and Director of Credit Suisse Asset Management Securities, Inc. (formerly Counsellors Securities, Inc.) and Director/Trustee of various investment companies advised by Warburg Pincus Asset Management, Inc. until September 15, 1999; Managing Director of Warburg Pincus Asset Management, Inc. until 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Marvin E. Sternberg - 68 Director - Until successor is Chairman, Director and 13 Director, Moyco Moyco Technologies, Inc. elected and President, Moyco Technologies, Technologies, Inc. 200 Commerce Drive qualified or until Inc. (manufacturer of Montgomeryville, PA 18936 his death, precision coated and resignation or industrial abrasives) since removal. 1974. - 1988 to present - ------------------------------------------------------------------------------------------------------------------------------------
48 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND FUND MANAGEMENT (UNAUDITED)
NUMBER OF PRINCIPAL PORTFOLIOS POSITION(S) TERM OF OFFICE OCCUPATION(S) FUND COMPLEX OTHER NAME, ADDRESS, HELD AND LENGTH OF DURING PAST OVERSEEN BY DIRECTORSHIPS AND AGE WITH FUND TIME SERVED 5 YEARS DIRECTOR HELD BY DIRECTOR - ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED DIRECTORS - ------------------------------------------------------------------------------------------------------------------------------------ Robert Sablowsky** - 64 Director - Until successor is Senior Vice President since 13 None Fahnestock & Company, Inc. elected and July 2002 and prior thereto, 125 Broad Street qualified or until Executive Vice President of New York, NY 10004 his death, Fahnestock & Co., Inc. (a resignation or registered broker-dealer). removal. - 1991 to present - ------------------------------------------------------------------------------------------------------------------------------------ J. Richard Carnall** - 64 Director - Until successor is Director of PFPC Inc. from 13 None 86 New Freedom Road elected and January 1987 to April 2002, Medford, NJ 08055 qualified or until Chairman and Chief Executive his death, Officer of PFPC Inc. until resignation or April 2002, Executive Vice removal. President of PNC Bank, - August 2002 to National Association from present October 1981 to April 2002, Director of PFPC International Ltd. (financial services) from August 1993 to April 2002, Director of PFPC International (Cayman) Ltd. (financial services) from September 1996 to April 2002, and Director of International Dollar Reserve Fund, Ltd. (Cayman mutual fund company) from September 1993 to April 2002; Governor of the Investment Company Institute (investment company industry trade organization) from July 1996 to January 2002; Director of PNC Asset Management, Inc. (investment advisory) from September 1994 to March 1998; Director of PNC National Bank from October 1995 to November 1997; Director of Haydon Bolts, Inc. (bolt manufacturer) and Parkway Real Estate Company (subsidiary of Haydon Bolts, Inc.) since May 1984. Mr. Carnall provides consulting services from time to time to PFPC Inc. - ------------------------------------------------------------------------------------------------------------------------------------ ** Mr. Carnall is considered an "interested Director" of the Company because he owns shares of The PNC Financial Services Group, Inc. The investment adviser to the Company's Money Market Portfolio, BlackRock Institutional Management Corporation, and the Company's principal underwriter, PFPC Distributors, Inc., are indirect subsidiaries of the PNC Financial Services Group, Inc. Mr. Carnall also owns shares of PFPC Inc., the Company's administrator. Mr. Sablowsky is considered an "interested Director" of the Company by virtue of his position as an officer of a registered broker-dealer.
49 [LOGO OMITTED] n/i numeric investors family of funds EMERGING GROWTH FUND (FORMERLY THE "MICRO CAP FUND") GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND FUND MANAGEMENT (UNAUDITED)
NUMBER OF PRINCIPAL PORTFOLIOS POSITION(S) TERM OF OFFICE OCCUPATION(S) FUND COMPLEX OTHER NAME, ADDRESS, HELD AND LENGTH OF DURING PAST OVERSEEN BY DIRECTORSHIPS AND AGE WITH FUND TIME SERVED 5 YEARS DIRECTOR HELD BY DIRECTOR - ------------------------------------------------------------------------------------------------------------------------------------ OFFICER(S) WHO ARE NOT DIRECTORS - ------------------------------------------------------------------------------------------------------------------------------------ Edward J. Roach - 78 President -Until successor is Certified Public Accountant; N/A N/A 400 Bellevue Parkway and elected by the Vice Chairman of the Board, 4th Floor Treasurer Board. Fox Chase Cancer Center; Wilmington, DE 19809 -1991 and 1988 Trustee Emeritus, Pennsylvania respectively School for the Deaf; Trustee Emeritus, Immaculata University; President or Vice President and Treasurer of various investment companies advised by subsidiaries of PNC Bank Corp. from 1981 to 1997; Managing General Partner and President of Chestnut Street Exchange Fund; Director of the Bradford Funds, Inc. from 1996 to 2000. - ------------------------------------------------------------------------------------------------------------------------------------ Timothy K. Biedrzycki - 54 Secretary - Until successor is Director and Vice President, N/A N/A 400 Bellevue Parkway and elected by the Fund Accounting and 4th Floor Assistant board. Administration of PFPC Inc. Wilmington, DE 19809 Treasurer - 2000 and 1998 since 1998; Director and Vice respectively President, Fund Accounting and Administration of Federated Services Company (financial services) from 1994 to 1997. - ------------------------------------------------------------------------------------------------------------------------------------
50 [LOGO OMITTED] n/i numeric investors family of funds One Memorial Drive Cambridge, MA 02142 1-800-numeric [686-3742] http://www.numeric.com INVESTMENT ADVISER Numeric Investors L.P.(R) One Memorial Drive Cambridge, MA 02142 CO-ADMINISTRATORS Bear Stearns Funds Management Inc. 383 Madison Avenue New York, NY 10179 PFPC Inc. Bellevue Corporate Center 400 Bellevue Parkway Wilmington, DE 19809 DISTRIBUTOR PFPC Distributors,Inc. 760 Moore Road Valley Forge, PA 19406 CUSTODIAN Custodial Trust Company 101 Carnegie Center Princeton, NJ 08540 TRANSFER AGENT PFPC Inc. Bellevue Corporate Center 400 Bellevue Parkway Wilmington, DE 19809 INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP Two Commerce Square Philadelphia, PA 19103 COUNSEL Drinker Biddle & Reath LLP One Logan Square 18th and Cherry Streets Philadelphia, PA 19103 This report is submitted for the general information of the shareholders of each Fund.It is not authorized for the distribution to prospective investors in each Fund unless it is preceded or accompanied by a current prospectus which includes details regarding each Fund's objectives, policies and other information. Total investment return is based on historical results and is not intended to indicate future performance. The total investment return and principal value of an investment in each Fund will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than original cost. [LOGO OMITTED] n/i numeric investors family of funds One Memorial Drive Cambridge, MA 02142 1-800-numeric [686-3742] http://www.numeric.com -----END PRIVACY-ENHANCED MESSAGE-----