-----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, TiXQFJwJ0LQYyAMRmjSj44aETvEdIcLQylGsAi2uLSu8CcV9lqqbq4zRoiDuOKiK JrurTbR/TFCA3Wwwrnz8Kg== 0000935069-00-000232.txt : 20000510 0000935069-00-000232.hdr.sgml : 20000510 ACCESSION NUMBER: 0000935069-00-000232 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000229 FILED AS OF DATE: 20000509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RBB FUND INC CENTRAL INDEX KEY: 0000831114 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05518 FILM NUMBER: 622539 BUSINESS ADDRESS: STREET 1: 400 BELLEVUE PKWY STE 100 CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 3027911791 MAIL ADDRESS: STREET 1: 103 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 NUMERIC INVESTORS 2000 SEMI-ANNUAL REPORT N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] N/I NUMERIC INVESTORS Micro Cap Fund N/I NUMERIC INVESTORS Growth Fund N/I NUMERIC INVESTORS Mid Cap Fund N/I NUMERIC INVESTORS Larger Cap Value Fund N/I NUMERIC INVESTORS Small Cap Value Fund Semi-Annual Report February 29, 2000 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND ADVISER'S REPORT April 7, 2000 Dear Shareholder: As your Funds' adviser, we are pleased to report the semi-annual results for the N/I NUMERIC INVESTORS FAMILY OF FUNDS ("the Funds") for the six months ended February 29, 2000. NEW ECONOMY VERSUS OLD ECONOMY STOCKS Over the last six months, the most popular topic of discussion among investment managers has been the new way to partition the stock market. Almost every investment letter and newspaper article we read makes mention of "New Economy" versus "Old Economy" stocks. Generally, Telecommunications, Media and Technology ("TMT") stocks comprise the New Economy while all remaining sectors are lumped into the Old Economy. In recent months, a surge of interest in the Human Genome Project has caused Biotech stocks to be placed among New Economy stocks as well. Many shareholders have asked our opinion on this topic. The most effective way for us, at Numeric Investors L.P.(REGISTRATION MARK) ("Numeric"), to think through the question of Old versus New Economy stocks is to analyze how our quantitative models view these stocks. The primary stock selection tool we utilize for the N/I NUMERIC INVESTORS Growth and Micro Cap Funds is the ESTREND(TRADEMARK) model. For the Mid Cap Fund, ESTREND(TRADEMARK) and the FAIR VALUE model each contribute about half of the stock selection process. For the Larger and Small Cap Value Funds, ESTREND(TRADEMARK) plays only a minor role and FAIR VALUE is the model of choice. New Economy stocks account for varying portions of your Funds' holdings depending on the role such stocks play in the Funds' benchmark indices. The Micro Cap and Growth Funds both contain over 50% in New Economy stocks, the Mid Cap Fund has a 35% exposure to such stocks, and the Small and Larger Cap Value Funds have much lower exposures. We believe the ESTREND(TRADEMARK) model is an effective tool for uncovering New Economy stocks by quantitatively measuring the trend in analysts' estimate revisions. We find that many of these New Economy stocks initially reveal their future promise in the form of analysts becoming more optimistic about their earnings prospects. The ESTREND(TRADEMARK) model is run in real-time as new analysts' estimates are received, adapting to new information and the current market environment rapidly. Through the lens of the ESTREND(TRADEMARK) model, we hope to see which stocks are enjoying a surge in new opportunities and thus we believe we are better able to adapt to the next hot industry, when one emerges. On the other side of the ledger, we believe valuation tools are not dead for New Economy stocks, at least not in the approach that Numeric uses in its FAIR VALUE model. The FAIR VALUE model is Numeric's tool of choice for selecting among Old Economy stocks because we believe such companies are less likely to "take on a new life" because of a company-changing new product. The FAIR VALUE model incorporates into the traditional "value" definition a willingness to pay more for stocks with the potential for rapid growth and higher quality. Thus the FAIR VALUE model has not struggled as much as "deep" value techniques in the recent pro-growth market environment. 1 Through the lens of our ESTREND(TRADEMARK) model, we find many New Economy stocks to be attractive because of their strongly rising earnings estimates. Not only are they forecast to grow their earnings rapidly, but their rate of growth also is increasing as estimates continue to soar. From the perspective of our FAIR VALUE model however, we believe most New Economy stocks look richly priced, especially when compared to Old Economy stocks. Implicit in the current spread in pricing between New and Old Economy stocks is the belief that New Economy companies will do even better than forecast, while Old Economy companies will fare even worse. Numeric emphasizes the ESTREND(TRADEMARK) model when selecting among smaller, growth companies and, as a result, we are able to find attractive New Economy stocks to buy. Importantly, not every New Economy stock enjoys strongly rising earnings estimates, but we believe, many of these stocks have been buoyed to lofty valuations just by being in a New Economy industry. The ESTREND(TRADEMARK) model steers us away from companies without improving fundamentals. When the market adopts a more cynical view of New Economy companies, we are optimistic that our focus on companies with improving fundamentals will benefit the Funds. MARKET ENVIRONMENT - AUGUST 1999 THROUGH FEBRUARY 2000 AN EXTRAORDINARY PREFERENCE FOR GROWTH The market environment for the six months ended February 29, 2000, produced the strongest preference for Growth stocks over Value stocks since market analysts began tracking returns for the two investment styles more than twenty years ago. The chart below shows that the spread in favor of Growth stocks was 31.4% among the larger cap stocks in the Russell 1000 Index, and 63.2% among the smaller stocks comprising the Russell 2000 Index, for the six months ended February 29, 2000. The chart also reveals that the smaller cap Russell 2000 Index produced higher returns than the larger cap Russell 1000 Index. This is the first six-month period in several years during which smaller stocks outperformed larger. [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC COMPARISON OF TOTAL RETURN FOR THE SIX MONTH PERIOD ENDED FEBRUARY 29, 2000 Russell 1000 Russell 2000 Growth 22.5% 66.0% Value (8.9)% 2.8% SOURCE: FRANK RUSSELL COMPANY 2 INDUSTRY AND SECTOR PREFERENCES Reflecting the market's predilection for smaller Growth stocks, two industries with great perceived potential to change the way we live, Internet and Biotech, produced returns far higher than the returns of smaller cap Growth stocks in general for the six months ended February 29, 2000. And the return of the Technology sector in general far eclipsed the return of other sectors. Excluding the returns of the two favored industries, the returns of the Russell 2000 Growth and 2500 Growth indices would have been lower by more than 13%. Eliminating the return of Technology stocks from these indices would have produced returns one-half to one-third as great. It appears to Numeric that any underweighting in these most-favored industries or top-performing sector was extremely costly to investors over the last six months. SIX-MONTH CAP-WEIGHTED BENCHMARK, SECTOR OR INDUSTRY RETURNS THROUGH FEBRUARY 29, 2000 - ----------------------------- -------------------------------- RUSSELL 2500 GROWTH INDEX +75.70% Internet Stocks in Russell 2500 Growth Index +180.64% Biotech Stocks in Russell 2500 Growth Index +209.04% Technology Stocks in Russell 2500 Growth Index +157.20% RUSSELL 2500 GROWTH INDEX EX-INTERNET & BIOTECH +62.41% RUSSELL 2500 GROWTH INDEX EX-TECHNOLOGY STOCKS +23.62% RUSSELL 2000 GROWTH INDEX +66.04% Internet Stocks in Russell 2000 Growth Index +171.91% Biotech Stocks in Russell 2000 Growth Index +230.59% Technology Stocks in Russell 2000 Growth Index +139.89% RUSSELL 2000 GROWTH INDEX EX-INTERNET & BIOTECH +52.82% RUSSELL 2000 GROWTH INDEX EX-TECHNOLOGY STOCKS +26.84% Numeric seeks to control economic sector exposures in the Funds to within a few percentage points of the economic sector content of each Fund's benchmark index. The two strongest performing industries, Biotech and Internet, were generally underweighted in the Funds because these industries were judged by Numeric to not be responsive to changing earnings expectations (the ESTREND(TRADEMARK) model) or valuation forces (the FAIR VALUE model). Rather, we believe the market's fascination with these industries was not driven by near-term earnings expectations. As shown in the table above, the underweighting in these two industries reduced returns by approximately 13% from the returns that might have been achieved had the Funds maintained benchmark weightings in these industries. SUCCESS OF THE STOCK SELECTION MODELS Over the last six months, the ESTREND(TRADEMARK) model added value, while it has been the most perverse period for valuation techniques ever seen. The FAIR VALUE model was not immune to the extreme anti-value environment and produced significantly negative investment results, despite a willingness to pay more for growth and quality. More than responding to valuation or earnings revisions techniques however, we believe the market was especially kind to stocks with positive price momentum. In an extremely narrow market, we believe investors rewarded stocks that had been rising by bidding them up even more. Thus returns were highly concentrated in a few favored industries or the Technology sector in general, while the rest of the market languished. And now everyone is talking about New Economy versus Old Economy stocks. 3 THE EFFECT OF INVESTORS CHASING OTHER INVESTORS We believe both institutional and retail fund inflows may have exacerbated the price action favoring Growth stocks. Retail mutual funds continue to experience robust inflows that have become increasingly concentrated in capital appreciation or growth-oriented funds. In particular, investors have increased their exposure to funds with significant New Economy exposure. In a study done by the Investment Company Institute on a sample of 1,520 domestic stock funds, the 10% with the largest inflows had about 30% exposure to Technology stocks, which was roughly double the amount held in the 10% with the lowest inflows. We believe that investors seem to be chasing performance as money has moved out of Value funds and into Growth funds. Over the past few months new flows have been bound mainly for Growth funds which has only added to the upward volatility in the growth investment style. [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC FUND FLOWS OUT OF VALUE AND INTO GROWTH FUND FLOWS IN $BILLION/MONTH Growth Value 1/31/96 10.80 8.04 2/29/96 9.47 6.98 3/31/96 9.90 6.81 4/30/96 11.89 7.44 5/31/96 13.99 6.30 6/30/96 6.02 5.15 7/31/96 1.32 3.01 8/31/96 7.79 5.50 9/30/96 7.83 5.77 10/31/96 5.15 5.66 11/30/96 6.71 5.37 12/31/96 4.98 3.88 1/31/97 9.96 10.04 2/28/97 2.85 8.93 3/31/97 1.44 6.00 4/30/97 3.55 7.36 5/31/97 7.03 7.90 6/30/97 4.77 7.29 7/31/97 9.62 10.16 8/31/97 5.39 6.75 9/30/97 13.56 6.27 10/31/97 9.14 8.19 11/30/97 9.43 8.43 12/31/97 7.74 7.48 1/31/98 5.68 8.25 2/28/98 8.28 10.75 3/31/98 7.75 11.45 4/30/98 10.47 10.05 5/31/98 7.92 7.73 6/30/98 8.80 6.31 7/31/98 8.43 6.55 8/31/98 (3.98) (0.78) 9/30/98 5.71 2.09 10/31/98 4.55 (1.77) 11/30/98 7.96 5.16 12/31/98 4.34 0.96 1/31/99 9.51 4.35 2/28/99 3.90 1.79 3/31/99 11.46 1.74 4/30/99 19.24 4.83 5/31/99 9.90 5.13 6/30/99 9.96 3.22 7/31/99 10.82 4.47 8/31/99 5.42 1.89 9/30/99 6.12 0.97 10/31/99 12.45 1.13 11/30/99 13.81 (3.81) 12/31/99 18.82 (9.52) 1/31/00 29.00 (12.53) SOURCE: INVESTMENT COMPANY INSTITUTE In the chart above, flows into Growth and Value style funds are plotted since January 1996. Note how flows were positive and more or less equal for both fund styles prior to the Summer of 1998. Thereafter, flows strongly favored Growth funds over Value, with outflows from Value funds in recent months partially offsetting inflows into Growth funds since the fourth quarter of 1999. The powerful fund flows into Growth funds and the superior returns of Growth stocks over Value stocks has led to a market with wide spreads in valuations. In the next chart, we plot the threshold P/E ratios above which 20% of the highest valuation stocks in the broad-market Russell 3000 Index sell, and below which 20% of the lowest valuation stocks sell. Numeric believes that the difference between these trailing price-earnings ratios is emblematic of the spread in valuation levels of the most in-favor and out-of-favor stocks in the market. 4 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC High & Low P/E Quintile Thresholds Trailing Earnings P/E Quintile Thresholds Highest Lowest P/E Quintile P/E Quintile Dec-78 12.60 6.30 Jan-79 12.30 6.30 Feb-79 12.10 6.40 Mar-79 12.00 6.50 Apr-79 11.80 6.40 May-79 11.70 6.30 Jun-79 11.80 6.30 Jul-79 11.80 6.30 Aug-79 12.00 6.30 Sep-79 12.30 6.40 Oct-79 12.20 6.20 Nov-79 12.30 6.10 Dec-79 12.50 6.00 Jan-80 11.80 5.70 Feb-80 11.30 5.50 Mar-80 10.80 5.30 Apr-80 10.90 5.40 May-80 11.00 5.50 Jun-80 11.30 5.70 Jul-80 12.10 5.70 Aug-80 13.00 5.80 Sep-80 14.10 6.00 Oct-80 14.50 6.00 Nov-80 14.90 6.10 Dec-80 15.60 6.20 Jan-81 15.30 6.20 Feb-81 15.20 6.20 Mar-81 15.30 6.30 Apr-81 14.90 6.30 May-81 14.70 6.40 Jun-81 14.60 6.50 Jul-81 13.60 6.20 Aug-81 12.80 5.90 Sep-81 12.10 5.70 Oct-81 12.20 5.70 Nov-81 12.50 5.80 Dec-81 12.90 6.00 Jan-82 12.10 5.70 Feb-82 11.50 5.50 Mar-82 11.00 5.40 Apr-82 11.10 5.30 May-82 11.30 5.30 Jun-82 11.60 5.30 Jul-82 12.10 5.50 Aug-82 12.70 5.70 Sep-82 13.40 6.00 Oct-82 14.60 6.20 Nov-82 15.90 6.50 Dec-82 17.40 6.90 Jan-83 17.90 7.00 Feb-83 18.60 7.20 Mar-83 19.50 7.50 Apr-83 21.50 7.80 May-83 23.60 8.10 Jun-83 26.00 8.50 Jul-83 25.20 8.30 Aug-83 24.80 8.20 Sep-83 24.50 8.20 Oct-83 24.30 8.20 Nov-83 24.30 8.30 Dec-83 24.60 8.40 Jan-84 22.70 8.20 Feb-84 21.10 8.10 Mar-84 19.60 8.00 Apr-84 18.20 7.60 May-84 17.00 7.30 Jun-84 15.90 7.00 Jul-84 15.80 7.20 Aug-84 15.90 7.40 Sep-84 16.10 7.70 Oct-84 16.00 7.60 Nov-84 16.10 7.60 Dec-84 16.30 7.70 Jan-85 16.30 7.80 Feb-85 16.40 7.90 Mar-85 16.70 8.10 Apr-85 17.10 8.20 May-85 17.70 8.30 Jun-85 18.50 8.60 Jul-85 18.10 8.40 Aug-85 17.90 8.30 Sep-85 17.90 8.30 Oct-85 19.00 8.60 Nov-85 20.40 9.00 Dec-85 21.90 9.50 Jan-86 23.30 9.80 Feb-86 24.90 10.30 Mar-86 26.80 10.80 Apr-86 27.50 11.00 May-86 28.40 11.30 Jun-86 29.60 11.70 Jul-86 27.50 11.30 Aug-86 25.70 11.00 Sep-86 24.10 10.80 Oct-86 24.30 10.70 Nov-86 24.70 10.70 Dec-86 25.30 10.80 Jan-87 28.40 11.60 Feb-87 29.30 11.60 Mar-87 30.10 11.60 Apr-87 29.60 11.40 May-87 30.50 11.20 Jun-87 31.40 11.50 Jul-87 31.10 12.50 Aug-87 31.60 12.90 Sep-87 31.10 12.70 Oct-87 21.60 10.00 Nov-87 19.30 9.30 Dec-87 22.40 10.00 Jan-88 20.20 10.30 Feb-88 21.60 10.60 Mar-88 20.80 10.30 Apr-88 20.40 10.10 May-88 19.10 9.90 Jun-88 20.40 10.20 Jul-88 19.20 9.90 Aug-88 17.10 9.20 Sep-88 17.70 9.50 Oct-88 17.50 9.30 Nov-88 16.60 9.10 Dec-88 17.00 9.30 Jan-89 17.90 9.50 Feb-89 17.60 9.20 Mar-89 18.30 9.40 Apr-89 19.30 9.60 May-89 20.30 10.00 Jun-89 20.00 9.80 Jul-89 21.60 10.30 Aug-89 21.00 10.40 Sep-89 22.00 10.20 Oct-89 21.40 10.30 Nov-89 21.80 10.30 Dec-89 21.50 10.30 Jan-90 19.90 10.00 Feb-90 20.70 10.10 Mar-90 21.20 10.30 Apr-90 21.10 10.00 May-90 23.50 11.10 Jun-90 23.90 11.20 Jul-90 23.60 10.90 Aug-90 21.30 10.00 Sep-90 19.90 9.50 Oct-90 19.20 9.70 Nov-90 20.80 10.50 Dec-90 21.10 10.70 Jan-91 21.20 11.20 Feb-91 23.50 12.00 Mar-91 24.80 11.90 Apr-91 23.70 12.10 May-91 25.00 11.80 Jun-91 24.20 11.50 Jul-91 25.60 12.50 Aug-91 26.60 12.30 Sep-91 26.00 12.60 Oct-91 28.60 12.70 Nov-91 29.80 12.30 Dec-91 34.40 13.20 Jan-92 41.00 13.50 Feb-92 41.50 13.30 Mar-92 40.90 12.90 Apr-92 37.30 13.90 May-92 37.50 14.00 Jun-92 39.70 14.00 Jul-92 40.70 14.40 Aug-92 37.90 13.90 Sep-92 38.60 14.20 Oct-92 33.70 14.20 Nov-92 35.70 14.80 Dec-92 35.20 14.90 Jan-93 32.00 14.30 Feb-93 32.00 14.20 Mar-93 33.40 14.40 Apr-93 30.70 14.00 May-93 31.60 14.20 Jun-93 32.50 14.30 Jul-93 32.00 13.80 Aug-93 33.40 14.20 Sep-93 35.50 14.20 Oct-93 34.90 13.70 Nov-93 36.60 13.50 Dec-93 36.70 13.50 Jan-94 39.90 13.60 Feb-94 32.20 13.30 Mar-94 30.80 12.70 Apr-94 29.90 12.80 May-94 30.20 12.30 Jun-94 30.80 12.10 Jul-94 29.40 12.40 Aug-94 30.70 12.60 Sep-94 30.90 12.40 Oct-94 27.60 12.40 Nov-94 26.50 11.80 Dec-94 26.40 11.90 Jan-95 24.90 12.00 Feb-95 22.90 12.00 Mar-95 23.50 12.20 Apr-95 23.20 11.90 May-95 22.90 12.60 Jun-95 24.60 12.90 Jul-95 26.30 12.60 Aug-95 25.30 12.50 Sep-95 25.50 12.80 Oct-95 24.90 12.50 Nov-95 26.10 12.90 Dec-95 26.40 13.20 Jan-96 31.50 13.00 Feb-96 33.50 13.00 Mar-96 34.30 13.40 Apr-96 33.40 13.30 May-96 35.80 13.60 Jun-96 38.20 13.70 Jul-96 33.40 13.00 Aug-96 33.70 12.90 Sep-96 37.70 13.40 Oct-96 35.70 13.60 Nov-96 37.10 14.60 Dec-96 36.70 14.80 Jan-97 34.80 15.00 Feb-97 31.50 14.90 Mar-97 30.70 14.10 Apr-97 30.90 14.50 May-97 33.50 15.20 Jun-97 38.20 15.80 Jul-97 42.70 16.20 Aug-97 39.00 15.80 Sep-97 42.30 16.60 Oct-97 41.30 16.00 Nov-97 41.80 16.80 Dec-97 40.40 16.80 Jan-98 40.90 16.00 Feb-98 42.40 17.10 Mar-98 48.00 18.00 Apr-98 52.40 18.30 May-98 48.60 17.60 Jun-98 59.40 18.20 Jul-98 51.30 17.70 Aug-98 41.50 14.80 Sep-98 47.60 15.90 Oct-98 47.40 17.20 Nov-98 54.50 18.40 Dec-98 68.30 18.80 Jan-99 63.90 18.70 Feb-99 56.20 18.10 Mar-99 70.00 18.90 Apr-99 56.90 19.40 May-99 57.20 18.80 Jun-99 64.90 19.90 Jul-99 55.70 19.40 Aug-99 60.10 18.60 Sep-99 60.60 18.10 Oct-99 58.40 18.70 Nov-99 71.90 18.70 Dec-99 99.30 19.10 Jan-00 93.50 17.70 Feb-00 121.40 16.60 SOURCE: FRANK RUSSELL COMPANY The chart above shows that there has been an explosion in the P/E ratios of the most favored stocks since the fourth quarter of 1999 and more broadly since the middle of 1998. This coincides precisely with the fund-flow shift in favor of Growth stocks shown in the prior chart. The remarkable aspect of the chart above is that stocks selling at price-earnings ratios of 121.4 and higher are pricing perfection, and reality so often falls short. Thus, 20% of the U.S. market capitalization is concentrated in stocks with extremely optimistic growth expectations. Whereas we agree that the New Economy offers the potential to improve the quality of life for everyone, we doubt that all companies in these favored industries will be able to produce "perfect" earnings growth. Rather, we believe that a few companies will succeed but most will face competition and unforeseen obstacles that will make their present prices appear too optimistic. That is why we emphasize the ESTREND(TRADEMARK) model when selecting among New Economy stocks, to endeavor to avoid those companies where disappointments lurk. FUND RETURNS THROUGH FEBRUARY 29, 2000 The six month return through February 29, 2000 for the N/I MICRO CAP FUND was +46.77%, compared to its benchmark, the Russell 2000 Growth Index, an unmanaged index of smaller capitalization Growth stocks, which returned +66.04%. We believe that the Fund's disappointing returns relative to its benchmark were primarily due to under exposure to the Internet and Biotech industries. Over the one-year period ended February 29, 2000, the N/I MICRO CAP FUND'S return was +73.64% versus +84.06% for the benchmark. It appears that weak performance in the most recent six-month period more than erased good relative returns during the prior six months. Since inception on June 3, 1996, the Fund's annualized return has been +31.61% versus +17.95% for the Russell 2000 Growth Index. The six month return through February 29, 2000 for the N/I GROWTH FUND was +60.15%, compared to its benchmark, the Russell 2500 Growth Index, an unmanaged index of smaller capitalization Growth stocks, which returned +75.38%. We believe that the Fund's disappointing returns relative to its benchmark also were primarily due to under exposure to the Internet and Biotech industries. Over the one-year period ended February 29, 2000, the N/I GROWTH FUND'S return was +95.94% versus +105.48% for the benchmark. Since inception on June 3, 1996, the Fund's annualized return has been +25.76% versus +23.90% for the Russell 2500 Growth Index. The six month return through February 29, 2000 for the N/I MID CAP FUND (formerly n/i Growth & Value Fund) was +10.66%, compared to its benchmark, the S&P MidCap 400 Index, an unmanaged index of medium capitalization Growth stocks, which returned +18.09%. We believe that the Fund's disappointing returns relative to its benchmark were due primarily to poor performance in the FAIR VALUE model. Over the one-year period ended February 29, 2000, the N/I MID CAP FUND'S return was +27.06% versus +30.96% for the benchmark. Since inception on June 3, 1996, the Fund's annualized return has been +21.11% versus +20.65% for the S&P MidCap 400 Index. 5 The six month return through February 29, 2000 for the N/I LARGER CAP VALUE FUND was -20.86%, compared to its benchmark, the Russell 1000 Value Index, an unmanaged index of larger capitalization stocks with value characteristics, which returned -8.88%. We believe that the Fund's disappointing returns relative to its benchmark were due primarily to the extremely poor environment for value investing and poor performance in the FAIR VALUE model. Over the one-year period ended February 29, 2000, the N/I LARGER CAP VALUE FUND'S return was -15.78% versus -3.27% for the benchmark. Since inception on December 9, 1997, the Fund's annualized return has been -4.58% versus +4.77% for the Russell 1000 Value Index. The six month return through February 29, 2000 for the N/I SMALL CAP VALUE FUND was -12.72%, compared to its benchmark, the Russell 2000 Value Index, an unmanaged index of smaller capitalization stocks with value characteristics, which returned 2.82%. Over the one-year period ended February 29, 2000, the N/I SMALL CAP VALUE FUND'S return was -0.31% versus 11.80% for the benchmark. We believe that the Fund's disappointing returns relative to its benchmark were due to the extremely poor environment for value investing and some specific stocks in the Biotech sector that accounted for much of the benchmark's return. Since inception on November 30, 1998, the Fund's annualized return has been -5.20% versus +3.97% for the Russell 2000 Value Index. GOING FORWARD We approach the future with increasing optimism about your Funds' ability to again generate positive returns relative to their benchmarks. Of course there can be no guarantee that these positive relative returns will be achieved and there can be no assurance whatever that a portfolio of stocks will not decline in the face of a falling market. Still, we have two reasons to feel optimistic. First, we believe the tone of the market has improved for our processes since the end of February. As we write this letter in early April, we note that performance during the month of March for four of the five N/I NUMERIC INVESTORS Funds was significantly ahead of their respective benchmarks. We are gratified that the market has stopped rewarding narrow, speculative sectors of the market as of the date of this letter and we are optimistic that flows and prices will rationalize the wide spreads in valuations between New and Old Economy stocks. Second, we have made an important but small modification to our portfolio construction rules which we believe should reduce the variation of the Funds' returns from their benchmarks' returns and reduce our exposure to the difference between New and Old Economy stocks. Specifically, we now endeavor to limit each Fund's exposure to any industry to be within 3% of the industry's weight in the Fund's benchmark. We believe that the market appears to be adjusting the prices of Internet stocks to reflect changing earnings expectations, so we can use our ESTREND(TRADEMARK) model to select stocks in this industry. In Biotech stocks where our models are less powerful, we intend to buy a diversified basket of stocks in an attempt to keep each Fund's industry exposure from falling more than 3% below the exposure of the Fund's benchmark. On a separate note, as some of you are aware, the Board of Directors of the Fund recently recommended that the N/I LARGER CAP VALUE FUND be liquidated and terminated. The reason for this is that it will be very difficult to manage a diversified portfolio if assets decline further. Total Fund assets on April 7th were $1.5 million. We regret that this recommendation had to be made but believe that it is in the best interests of shareholders. Thank you for your support and confidence. Sincerely, /S/ L B Wheeler Langdon B. Wheeler, CFA President Numeric Investors L.P.(REGISTRATION MARK) 6 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND PORTFOLIO OF INVESTMENTS FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMMON STOCKS--96.7% ADVERTISING--0.5% 24,400 ADVO, Inc.*/** ................................ $ 677,100 ------------ APPAREL--0.1% 4,400 Kellwood Co. .................................. 74,250 ------------ ATHLETIC EQUIPMENT--0.4% 21,100 Direct Focus, Inc.* ........................... 589,481 ------------ AUTOMOBILE PARTS & EQUIPMENT--0.9% 40,100 American Axle & Manufacturing Holdings, Inc.* ............................. 558,894 28,800 Copart, Inc.* ................................. 605,700 ------------ 1,164,594 ------------ AUTOMOBILE RENTALS--0.4% 42,000 Dollar Thrifty Automotive Group, Inc.*/** .................................... 551,250 ------------ BANKS--1.4% 49,300 East West Bancorp, Inc. ....................... 619,331 13,000 GBC Bancorp** ................................. 351,000 12,000 Greater Bay Bancorp** ......................... 471,000 5,900 Silicon Valley Bancshares* .................... 467,575 ------------ 1,908,906 ------------ BEVERAGES--1.0% 7,300 Canandaigua Brands, Inc., Class A* ............ 357,700 28,800 Celestial Seasonings, Inc.* ................... 748,800 5,500 Robert Mondavi Corp., Class A * ............... 201,438 ------------ 1,307,938 ------------ BUSINESS SERVICES--4.0% 13,400 Boron, Lepore & Associates, Inc.* ............. 114,737 8,500 Cognizant Technology Solutions Corp.* ......... 927,562 10,050 Diamond Technology Partners Inc.* ............. 687,169 22,500 F.Y.I. Inc.*/** ............................... 669,375 9,600 Forrester Research, Inc.*/** .................. 384,000 37,400 InterCept Group, Inc. (The)* .................. 906,950 11,600 Meta Group, Inc.*/** .......................... 359,600 3,900 Plexus Corp.*/** .............................. 220,228 27,900 Quanta Services, Inc.*/** ..................... 1,129,950 ------------ 5,399,571 ------------ COMPUTER COMPONENTS--1.9% 9,200 Advanced Digital Information Corp.* ........... 833,750 6,300 Documentum, Inc.*/** .......................... 475,256 38,700 Integrated Measurement System, Inc.*/** ....... 846,562 7,200 Silicon Storage Technology, Inc.* ............. 454,500 ------------ 2,610,068 ------------ - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMPUTER DATA SECURITY--0.2% 3,200 ISS Group, Inc.* .............................. $ 336,000 ------------ COMPUTER GRAPHICS--0.5% 10,400 NVIDIA Corp.* ................................. 665,600 ------------ COMPUTER NETWORKING PRODUCTS--2.4% 24,900 Apex Inc.* .................................... 1,117,387 9,700 Black Box Corp.* .............................. 725,681 30,700 Objective Systems Integrators, Inc.* .......... 590,975 5,800 Proxim, Inc.* ................................. 832,300 ------------ 3,266,343 ------------ COMPUTER PERIPHERAL EQUIPMENT--2.6% 28,950 Cybex Computer Products Corp.* ................ 1,346,175 32,500 In Focus Systems, Inc.* ....................... 1,088,750 64,000 Splash Technology Holdings, Inc.* ............. 1,056,000 ------------ 3,490,925 ------------ COMPUTER SERVICES--1.6% 8,000 Brio Technology, Inc.* ........................ 320,500 32,900 Pomeroy Computer Resources, Inc.* ............. 538,737 5,612 Wind River Systems, Inc.* ..................... 325,847 20,700 Zomax Inc.* ................................... 1,013,006 ------------ 2,198,090 ------------ COMPUTER SOFTWARE--10.3% 48,200 3DO Co. (The)*/** ............................. 723,000 1,400 Allaire Corp.* ................................ 181,125 14,700 Aspen Technology, Inc.* ....................... 657,825 39,700 AVT Corp.*/** ................................. 1,049,569 29,700 CACI International Inc.* ...................... 844,594 9,900 click2learn.com, Inc.* ........................ 164,587 37,800 Continuus Software Corp.* ..................... 370,912 11,000 CyberCash, Inc.* .............................. 115,500 7,300 DSET Corp.*/** ................................ 182,500 9,900 Interliant Inc.* .............................. 424,462 11,600 InterVoice-Brite, Inc.* ....................... 419,050 5,300 Kronos, Inc.*/** .............................. 336,550 11,300 Logility, Inc. * .............................. 180,800 19,500 MapInfo Corp.* ................................ 672,750 9,600 Mercury Computer Systems, Inc.* ............... 462,600 3,100 NetIQ Corp.*/** ............................... 208,087 15,400 NetScout Systems, Inc.* ....................... 316,662 12,100 Pinnacle Systems, Inc.* ....................... 606,512 1,600 Primus Knowledge Solutions, Inc.* ............. 192,000 31,400 Progress Software Corp.* ...................... 783,037 4,000 Proxicom, Inc.* ............................... 167,500 6,900 Radiant Systems, Inc.* ........................ 352,762 26,600 SERENA Software, Inc.* ........................ 1,122,187 70,000 Take-Two Interactive Software, Inc.*/** ....... 870,625 The accompanying notes are an integral part of the financial statements. 7 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMPUTER SOFTWARE--(CONTINUED) 10,700 TenFold Corp.*/** ............................. $ 537,006 32,700 Voyager.net, Inc.* ............................ 351,525 9,300 WebTrends Corp.* .............................. 883,500 25,300 Unigraphics Solutions Inc.*/** ................ 700,494 ------------ 13,877,721 ------------ CONSTRUCTION--0.2% 12,100 Centex Construction Products, Inc. ............ 281,325 ------------ ELECTRICAL EQUIPMENT--3.5% 18,200 Applied Science & Technology, Inc.* ........... 629,037 9,600 Brooktrout, Inc.* ............................. 460,800 20,200 C&D Technologies, Inc. ........................ 944,350 2,900 Credence Systems Corp.* ....................... 386,425 23,900 CyberOptics Corp.* ............................ 878,325 8,100 Cymer, Inc.* .................................. 444,487 3,300 Power-One, Inc.* .............................. 162,112 16,900 Salton, Inc.*/** .............................. 796,412 ------------ 4,701,948 ------------ ELECTRONIC COMPONENTS & ACCESSORIES--2.3% 21,600 Electro Scientific Industries, Inc.* .......... 1,224,450 11,500 MKS Instruments, Inc.* ........................ 523,250 16,400 Pioneer-Standard Electronics, Inc.** .......... 301,350 18,000 Technitrol, Inc. .............................. 843,750 3,233 Three-Five Systems, Inc.* ..................... 198,425 ------------ 3,091,225 ------------ ELECTRONICS--1.0% 14,500 Applied Films Corp.* .......................... 424,125 16,600 Cohu, Inc. .................................... 935,825 ------------ 1,359,950 ------------ ELECTRONICS - INSTRUMENTS--1.4% 12,600 Anaren Microwave, Inc.*/** .................... 956,025 49,400 FEI Co. ....................................... 994,175 ------------ 1,950,200 ------------ ENVIRONMENTAL SERVICES--0.8% 43,600 Tetra Tech, Inc.*/** .......................... 1,092,725 ------------ FINANCIAL SERVICES--1.5% 38,700 Advanta Corp., Class A** ...................... 720,787 21,600 Doral Financial Corp. ......................... 211,950 8,000 DVI Financial Corp.* .......................... 118,000 45,100 LaBranche & Co. Inc.* ......................... 546,837 20,900 Triad Guaranty Inc.*/** ....................... 438,900 ------------ 2,036,474 ------------ - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- FOOD & AGRICULTURE--0.9% 42,800 Del Monte Foods Co.*/** ....................... $ 535,000 17,600 Hain Food Group, Inc. (The)* .................. 646,800 ------------ 1,181,800 ------------ HEALTH CARE--0.8% 41,100 RehabCare Group, Inc.* ........................ 1,104,562 ------------ HOSPITALS--0.6% 52,800 LifePoint Hospitals, Inc.* .................... 795,300 ------------ HOUSEHOLD PRODUCTS--0.5% 23,600 Libbey Inc. ................................... 634,250 ------------ INDUSTRIAL MACHINERY--0.7% 9,300 Brooks Automation, Inc.* ...................... 671,925 16,000 Lincoln Electric Holdings, Inc. ............... 312,000 ------------ 983,925 ------------ INSURANCE - BROKER--0.4% 70,700 Quotesmith.com, Inc.* ......................... 503,737 ------------ INSURANCE - HEALTH & LIFE--0.6% 3,700 Nationwide Financial Services, Inc., Class A ..................................... 85,331 27,400 StanCorp Financial Group, Inc. ................ 674,725 ------------ 760,056 ------------ INSURANCE - PROPERTY & CASUALTY--0.4% 46,700 CNA Surety Corp. .............................. 531,212 ------------ INTERNET SOFTWARE--1.2% 7,400 About.com, Inc.*/** ........................... 519,850 300 Chordiant Software, Inc. */** ................. 10,500 200 DigitalThink, Inc. * .......................... 8,150 1,300 Go2Net, Inc.* ................................. 113,100 100 net.Genesis Corp. * ........................... 5,619 30,400 Quokka Sports, Inc.*/** ....................... 383,800 3,300 SportsLine.com, Inc. * ........................ 152,213 43,700 Women.com Networks, Inc. */** ................. 434,269 ------------ 1,627,501 ------------ INVESTMENT ADVICE--0.3% 18,100 BlackRock, Inc.* .............................. 392,544 ------------ LABORATORY ANALYTICAL INSTRUMENTS--0.5% 15,300 Varian Inc.* .................................. 610,087 ------------ LEISURE & ENTERTAINMENT--0.4% 13,700 Anchor Gaming* ................................ 570,262 ------------ The accompanying notes are an integral part of the financial statements. 8 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- MACHINERY--1.4% 7,600 Asyst Technologies, Inc.* ..................... $ 348,650 5,000 Helix Technology Corp.** ...................... 355,625 11,400 Kulicke & Soffa Industries, Inc.* ............. 906,300 16,400 United Dominion Industries Ltd. ............... 302,375 ------------ 1,912,950 ------------ MANUFACTURING--0.5% 46,800 ESCO Electronics Corp.* ....................... 702,000 ------------ MEDICAL INSTRUMENTS & SUPPLIES--6.2% 19,600 Albany Molecular Research, Inc.* .............. 945,700 70,650 Candela Corp., Inc.*/** ....................... 1,059,750 4,100 Cooper Companies, Inc. (The) .................. 112,494 17,700 Datascope Corp. ............................... 705,787 16,200 Endocare, Inc.*/** ............................ 292,612 20,600 INAMED Corp.* ................................. 780,225 6,700 Mentor Corp. .................................. 185,925 25,900 PolyMedica Corp.*/** .......................... 1,199,494 14,300 ResMed Inc.*/** ............................... 1,067,137 27,400 SurModics, Inc.* .............................. 849,400 8,900 Wesley Jessen VisionCare, Inc.* ............... 255,875 16,500 Zoll Medical Corp.*/** ........................ 858,000 ------------ 8,312,399 ------------ MEDICAL & MEDICAL SERVICES--1.9% 12,800 IDEXX Laboratories, Inc.* ..................... 378,400 4,900 Invitrogen Corp.* ............................. 414,050 20,400 MedQuist Inc.* ................................ 525,300 24,000 Mid Atlantic Medical Services, Inc.* .......... 196,500 15,600 Pharmacopeia, Inc.*/** ........................ 1,061,775 ------------ 2,576,025 ------------ METAL FABRICATING--0.4% 47,400 Intermet Corp.** .............................. 533,250 ------------ MOTOR HOMES--0.3% 22,400 Monaco Coach Corp.* ........................... 403,200 ------------ OFFICE & BUSINESS EQUIPMENT--0.5% 23,500 United Stationers Inc.* ....................... 631,563 ------------ OIL & GAS FIELD EXPLORATION--2.6% 19,100 Atwood Oceanics, Inc.* ........................ 1,014,688 85,700 Key Energy Services, Inc.* .................... 851,644 4,200 SEACOR SMIT Inc.*/** .......................... 203,700 33,900 UTI Energy Corp.*/** .......................... 1,086,919 27,900 Vintage Petroleum, Inc. ....................... 404,550 ------------ 3,561,501 ------------ - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- OPTICAL INSTRUMENTS & LENSES--1.0% 10,300 Meade Instruments Corp.* ...................... $ 243,338 65,400 Robotic Vision Systems, Inc.*/** .............. 1,144,500 ------------ 1,387,838 ------------ PAPER & ALLIED PRODUCTS--0.5% 50,800 Schweitzer-Mauduit International, Inc. ........ 692,150 ------------ PHARMACEUTICALS--3.5% 18,200 Alpharma Inc., Class A** ...................... 630,175 51,800 Bindley Western Industries, Inc. .............. 890,313 13,000 Biomatrix, Inc.*/** ........................... 381,875 10,200 COR Therapeutics, Inc.*/** .................... 914,175 10,600 Corixa Corp.* ................................. 736,038 12,800 GelTex Pharmaceuticals, Inc.* ................. 280,800 4,100 King Pharmaceuticals, Inc.*/** ................ 195,519 30,200 Ligand Pharmaceuticals, Inc., Class B* ........ 656,850 ------------ 4,685,745 ------------ PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.8% 26,800 Concord Camera Corp.* ......................... 1,011,700 ------------ RECREATIONAL--0.3% 15,200 SCP Pool Corp.* ............................... 377,150 ------------ RESIDENTIAL CONSTRUCTION--0.4% 52,000 Standard Pacific Corp.** ...................... 552,500 ------------ RESTAURANTS--0.7% 6,700 P.F. Chang's China Bistro, Inc.* .............. 201,419 38,500 RARE Hospitality International, Inc.* ......... 726,688 ------------ 928,107 ------------ RETAIL - CATALOG & MAIL ORDER HOUSES--0.0% 6,900 Sharper Image Corp.* .......................... 62,100 ------------ RETAIL - COMPUTER EQUIPMENT--1.0% 41,300 Electronics Boutique Holdings Corp.*/** ....... 604,013 27,500 PC Connection, Inc.* .......................... 723,594 ------------ 1,327,607 ------------ RETAIL - DEPARTMENT STORES--0.1% 10,100 Ames Department Stores, Inc.*/** .............. 142,663 ------------ RETAIL - FAMILY CLOTHING STORES--0.5% 29,100 Factory 2-U Stores Inc.*/** ................... 705,675 ------------ RETAIL - INTERNET--0.2% 26,700 Cyberian Outpost, Inc.*/** .................... 235,294 7,800 VarsityBooks.com Inc.*/** ..................... 68,250 ------------ 303,544 ------------ The accompanying notes are an integral part of the financial statements. 9 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- RETAIL - JEWELRY STORES--0.4% 28,100 Whitehall Jewellers, Inc.*/** ................. $ 549,706 ------------ RETAIL - LUMBER & OTHER BUILDING MATERIALS--0.3% 35,600 Building Materials Holding Corp.*/** .......... 357,113 ------------ RETAIL - SHOE STORES--0.2% 20,600 Brown Shoe Company, Inc. ...................... 216,300 ------------ RETAIL - SPECIALTY--0.6% 14,300 CSK Auto Corp.* ............................... 164,450 37,900 Hot Topic, Inc.*/** ........................... 644,300 ------------ 808,750 ------------ RETAIL - SPECIALTY APPAREL--2.3% 42,700 Braun's Fashion Corp.* ........................ 640,500 12,200 Cato Corp. (The), Class A ..................... 122,000 6,400 Columbia Sportswear Co.* ...................... 133,200 30,900 Deb Shops, Inc. ............................... 478,950 13,700 Gadzooks, Inc.* ............................... 218,344 31,800 Guess?, Inc.* ................................. 677,737 8,500 Kenneth Cole Productions, Inc., Class A*/** ................................. 433,500 11,800 Pacific Sunwear of California, Inc.*/** ....... 300,163 4,800 Wilsons, The Leather Experts, Inc. * .......... 122,400 ------------ 3,126,794 ------------ SCHOOLS--1.7% 7,400 Bright Horizons Family Solutions, Inc.*/** .................................... 124,875 40,300 Corinthian Colleges, Inc.* .................... 720,363 47,100 Education Management Corp.* ................... 612,300 31,000 Learning Tree International, Inc.* ............ 825,375 ------------ 2,282,913 ------------ SEMICONDUCTORS--6.2% 3,200 Alpha Industries, Inc.* ....................... 464,600 3,900 Cree, Inc.* ................................... 732,713 15,800 Elantec Semiconductor, Inc* ................... 994,413 25,400 Electroglas, Inc.* ............................ 984,250 35,500 Integrated Silicon Solution, Inc.* ............ 987,344 10,200 International Rectifier Corp.* ................ 427,125 8,300 inTEST Corp.* ................................. 207,500 20,900 Pericom Semiconductor Corp.* .................. 862,125 26,300 Silicon Valley Group, Inc.* ................... 665,719 30,000 TelCom Semiconductor, Inc.* ................... 663,750 5,800 TriQuint Semiconductor, Inc.*/** .............. 688,750 12,700 Varian Semiconductor Equipment Associates, Inc.* ........................... 738,188 ------------ 8,416,477 ------------ - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- SERVICES - COMPUTER INTEGRATED SYSTEM DESIGN--0.4% 4,900 Cysive, Inc. */** ............................. $ 524,300 ------------ SERVICES - EMPLOYMENT AGENCIES--1.3% 39,000 Hall Kinion & Associates, Inc.* ............... 702,000 15,800 Korn/Ferry International* ..................... 592,500 18,500 RemedyTemp, Inc.* ............................. 411,625 ------------ 1,706,125 ------------ SERVICES - HEALTH CARE MANAGEMENT--1.2% 28,800 Accredo Health, Inc.* ......................... 849,600 7,750 Dendrite International, Inc.* ................. 190,844 26,000 Professional Detailing, Inc.*/** .............. 559,000 ------------ 1,599,444 ------------ SERVICES - MANAGEMENT CONSULTING--0.6% 17,200 MAXIMUS, Inc.* ................................ 588,025 7,100 Xceed Inc.*/** ................................ 222,763 ------------ 810,788 ------------ TELECOMMUNICATIONS--4.0% 29,900 Altigen Communications, Inc.*/** .............. 596,131 24,200 Gentner Communications Corp.* ................. 567,188 15,900 Latitude Communications, Inc.* ................ 335,888 31,800 Lightbridge, Inc.* ............................ 751,275 30,200 LodgeNet Entertainment Corp.* ................. 796,525 15,800 MasTec, Inc.* ................................. 910,475 25,100 TALK.com, Inc.* ............................... 423,563 15,400 XETA Corp.*/** ................................ 950,950 ------------ 5,331,995 ------------ TELECOMMUNICATIONS EQUIPMENT--4.7% 6,200 Active Voice Corp.* ........................... 340,225 11,600 Carrier Access Corp.*/** ...................... 658,300 25,100 Centigram Communications Corp.* ............... 517,688 33,300 Corsair Communications, Inc.* ................. 949,050 2,800 Powerwave Technologies, Inc.* ................. 447,650 2,400 Rural Cellular Corp., Class A* ................ 132,600 19,300 ScanSource, Inc., Class A* .................... 733,400 9,900 Somera Communications, Inc. * ................. 129,319 21,400 SpectraLink Corporation*/** ................... 623,275 11,150 Tollgrade Communications, Inc.*/** ............ 1,128,938 19,700 Westell Technologies, Inc., Class A*/** ....... 674,725 ------------ 6,335,170 ------------ The accompanying notes are an integral part of the financial statements. 10 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- TOYS--0.8% 53,500 Equity Marketing, Inc.* ....................... $ 541,688 34,200 JAKKS Pacific, Inc.* .......................... 564,300 ------------ 1,105,988 ------------ TRANSPORTATION--1.1% 28,050 Forward Air Corp.* ............................ 645,150 65,500 Frontier Airlines, Inc.* ...................... 728,688 3,100 Landstar System, Inc.* ........................ 174,181 ------------ 1,548,019 ------------ VITAMINS & NUTRITION PRODUCTS--0.6% 54,000 Rexall Sundown, Inc.*/** ...................... 810,000 ------------ WHOLESALE - DRUG DISTRIBUTION--0.8% 9,600 AmeriSource Health Corp., Class A* ............ 139,800 18,300 Priority Healthcare Corp., Class B* ........... 878,400 ------------ 1,018,200 ------------ WHOLESALE - SPECIALTY EQUIPMENT--0.5% 49,600 Brightpoint, Inc.*/** ......................... 638,600 ------------ Total Common Stocks (Cost $99,980,450) .......................... 130,323,269 ------------ - ----------------------------------------------------------------------- PRINCIPAL VALUE AMOUNT (000's) (NOTE 1) - ----------------------------------------------------------------------- REPURCHASE AGREEMENT--2.7% $3,703 Bear, Stearns & Co. Inc. (Agreement dated 02/29/00 to be repurchased at $3,703,996) 5.76%, 03/01/00 (Cost $3,703,403) (Note 6) .................. $ 3,703,403 ------------ Total Investments -- 99.4% (Cost $103,683,853) ......................... 134,026,672 ------------ Other Assets in Excess of Liabilities -- 0.6% ...................... 775,992 ------------ Net Assets -- 100.0% .......................... $134,802,664 ============ - -------------- * Non-income producing. ** Security or a portion thereof is out on loan. The accompanying notes are an integral part of the financial statements. 11 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMMON STOCKS--98.5% ADVERTISING--0.5% 7,000 ADVO, Inc.* ................................... $ 194,250 100 Avenue A, Inc.* ............................... 7,200 1,700 TMP Worldwide Inc.*/** ........................ 231,094 ----------- 432,544 ----------- AEROSPACE--0.1% 1,100 Cordant Technologies, Inc. .................... 35,612 ----------- AMUSEMENT & RECREATIONAL SERVICES--0.3% 7,400 Polaris Industries, Inc. ...................... 226,625 ----------- AUTOMOBILE PARTS & EQUIPMENT--0.7% 1,900 Arvin Industries, Inc. ........................ 34,912 12,300 Copart, Inc.* ................................. 258,684 18,100 Meritor Automotive, Inc. ...................... 253,400 ----------- 546,996 ----------- AUTOMOBILE RENTALS--0.5% 8,200 Avis Rent A Car, Inc.* ........................ 119,412 18,300 Dollar Thrifty Automotive Group, Inc.* ........ 240,187 1,500 Hertz Corp. (The), Class A** .................. 53,719 ----------- 413,318 ----------- BANKS--0.1% 5,150 Hudson United Bancorp ......................... 103,966 ----------- BEVERAGES--0.3% 4,800 Canandaigua Brands, Inc., Class A* ............ 235,200 ----------- BUILDING SUPPLIES--0.1% 2,200 Lafarge Corp. ................................. 43,312 ----------- BUSINESS SERVICES--2.6% 2,800 Cognizant Technology Solutions Corp.* ......... 305,550 11,200 CSG Systems International, Inc.* .............. 575,400 7,700 Diamond Technology Partners Inc.* ............. 526,487 7,100 InterCept Group, Inc. (The)* .................. 172,175 11,900 Quanta Services, Inc.*/** ..................... 481,950 ----------- 2,061,562 ----------- CHEMICALS - DIVERSIFIED--0.1% 1,200 FMC Corp.* .................................... 57,975 ----------- CHEMICALS - SPECIALTY--0.4% 3,200 Cytec Industries Inc.* ........................ 77,600 25,600 W.R. Grace & Co.* ............................. 257,600 ----------- 335,200 ----------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMPUTER COMPONENTS--1.9% 4,000 Advanced Digital Information Corp.* ........... $ 362,500 5,850 Microchip Technology, Inc.* ................... 365,259 6,100 SanDisk Corp.* ................................ 542,900 3,200 Silicon Storage Technology, Inc.* ............. 202,000 ----------- 1,472,659 ----------- COMPUTER DATA SECURITY--2.3% 5,400 ISS Group, Inc.* .............................. 567,000 5,000 VeriSign, Inc.* ............................... 1,265,000 ----------- 1,832,000 ----------- COMPUTER GRAPHICS--0.6% 7,000 NVIDIA Corp.* ................................. 448,000 ----------- COMPUTER HARDWARE--0.2% 1,700 Symbol Technologies, Inc. ..................... 161,712 ----------- COMPUTER NETWORKING PRODUCTS--6.1% 4,400 Adaptec, Inc.* ................................ 180,400 6,500 Apex Inc.* .................................... 291,687 7,200 Black Box Corp.* .............................. 538,650 2,000 Brocade Communications Systems, Inc.* ......... 578,250 4,700 Emulex Corp.* ................................. 752,000 3,600 Extreme Networks, Inc.* ....................... 400,500 600 Juniper Networks, Inc.* ....................... 164,587 9,000 Network Appliance, Inc.* ...................... 1,698,750 1,300 Proxim, Inc.* ................................. 186,550 1,400 Xircom, Inc.* ................................. 58,144 ----------- 4,849,518 ----------- COMPUTER PERIPHERAL EQUIPMENT--1.6% 2,700 CDW Computer Centers, Inc.* ................... 148,162 6,650 Cybex Computer Products Corp.* ................ 309,225 12,300 In Focus Systems, Inc.* ....................... 412,050 5,900 Insight Enterprises, Inc.* .................... 185,112 11,300 Splash Technology Holdings, Inc.* ............. 186,450 ----------- 1,240,999 ----------- COMPUTER SERVICES--0.8% 700 Breakaway Solutions, Inc.*/** ................. 87,500 2,800 Tanning Technology Corp.* ..................... 120,750 9,600 Zomax Inc.* ................................... 469,800 ----------- 678,050 ----------- The accompanying notes are an integral part of the financial statements. 12 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMPUTER SOFTWARE--15.9% 7,900 3DO Co. (The)* ................................ $ 118,500 2,400 Adobe Systems Inc. ............................ 244,800 800 Allaire Corp.* ................................ 103,500 4,800 AppNet, Inc.* ................................. 215,400 5,300 Aspen Technology, Inc.* ....................... 237,175 9,000 AVT Corp.* .................................... 237,937 11,200 BEA Systems, Inc.* ............................ 1,417,500 4,900 BroadVision, Inc.*/** ......................... 1,237,556 1,900 BSQUARE Corp.*/** ............................. 75,762 1,200 Clarent Corp.* ................................ 131,100 1,500 Clarify, Inc.* ................................ 216,469 4,500 Exodus Communications, Inc.* .................. 640,687 1,400 Informatica Corp.* ............................ 240,100 11,800 Mercury Interactive Corp.* .................... 1,137,225 5,800 Micromuse Inc.*/** ............................ 822,512 1,100 NetIQ Corp.*/** ............................... 73,837 6,000 Pinnacle Systems, Inc.* ....................... 300,750 2,400 Portal Software, Inc.* ........................ 180,300 4,200 Proxicom, Inc.* ............................... 175,875 7,600 Rational Software Corp.* ...................... 540,550 5,900 Razorfish Inc.*/** ............................ 197,650 1,000 RealNetworks, Inc.* ........................... 70,312 11,300 Remedy Corp.* ................................. 640,569 1,200 Scient Corp.* ................................. 84,900 13,300 SERENA Software, Inc.* ........................ 561,094 4,600 Siebel Systems, Inc.* ......................... 637,962 17,400 Take-Two Interactive Software, Inc.*/** ....... 216,412 1,300 TenFold Corp.* ................................ 65,244 5,850 THQ Inc.* ..................................... 118,097 2,400 TIBCO Software Inc.*/** ....................... 314,400 3,350 VERITAS Software Corp.* ....................... 662,881 11,500 Viant Corp.* .................................. 436,281 3,500 WebTrends Corp.* .............................. 332,500 ----------- 12,685,837 ----------- CONSTRUCTION--0.1% 2,900 Centex Construction Products, Inc. ............ 67,425 ----------- ELECTRICAL EQUIPMENT--1.8% 2,100 Applied Science & Technology, Inc.* ........... 72,581 6,300 C&D Technologies, Inc. ........................ 294,525 1,800 Credence Systems Corp.* ....................... 239,850 2,800 Cymer, Inc.* .................................. 153,650 2,300 KEMET Corp.* .................................. 141,306 11,400 Salton, Inc.*/** .............................. 537,225 ----------- 1,439,137 ----------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- ELECTRONIC COMPONENTS & ACCESSORIES--5.5% 1,600 Amphenol Corp., Class A* ...................... $ 127,900 2,300 ANADIGICS, Inc.* .............................. 310,500 4,400 Applied Micro Circuits Corp.*/** .............. 1,210,275 3,900 Cable Design Technologies Corp.* .............. 90,187 10,300 Conexant Systems, Inc.* ....................... 1,011,975 5,800 Electro Scientific Industries, Inc.* .......... 328,787 3,000 Jabil Circuit, Inc.* .......................... 208,312 2,400 RF Micro Devices, Inc.* ....................... 331,950 6,400 Sawtek Inc.* .................................. 307,200 500 Technitrol, Inc. .............................. 23,437 3,500 TranSwitch Corp.* ............................. 411,250 1,500 Vishay Intertechnology, Inc.* ................. 64,500 ----------- 4,426,273 ----------- ELECTRONICS--0.6% 3,000 Cohu, Inc. .................................... 169,125 3,000 DSP Group, Inc.* .............................. 263,438 700 Polycom, Inc. ................................. 81,419 ----------- 513,982 ----------- ENVIRONMENTAL SERVICES--0.1% 4,100 Tetra Tech, Inc.* ............................. 102,756 ----------- FINANCIAL SERVICES--1.3% 1,000 Bank United Corp., Class A .................... 26,187 4,600 Doral Financial Corp. ......................... 45,137 11,300 Edwards (A.G.), Inc. .......................... 358,069 2,900 Knight/ Trimark Group, Inc.* .................. 135,938 9,600 Metris Companies Inc.** ....................... 248,400 2,900 Neuberger Berman, Inc. ........................ 74,675 7,700 Profit Recovery Group International, Inc. (The)*/** .............................. 142,450 ----------- 1,030,856 ----------- FOOD & AGRICULTURE--1.5% 3,400 Dean Foods Co. ................................ 92,225 13,700 Fleming Companies, Inc. ....................... 211,494 4,900 Hain Food Group, Inc. (The)* .................. 180,075 14,700 International Home Foods, Inc.* ............... 248,981 6,400 Keebler Foods Co.* ............................ 162,400 4,100 Suiza Foods Corp.*/** ......................... 160,412 8,300 Universal Foods Corp. ......................... 149,919 ----------- 1,205,506 ----------- HEALTH CARE--0.4% 3,800 PacifiCare Health Systems, Inc.* .............. 172,662 2,200 Wellpoint Health Networks Inc.*/** ............ 148,500 ----------- 321,162 ----------- The accompanying notes are an integral part of the financial statements. 13 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- HOME FURNISHINGS/HOUSEWARES--0.7% 26,900 Furniture Brands International, Inc.* ......... $ 432,081 4,000 Mohawk Industries, Inc.*/** ................... 88,750 ----------- 520,831 ----------- HOSPITALS--0.1% 5,400 LifePoint Hospitals, Inc.* .................... 81,337 ----------- HOUSEHOLD PRODUCTS--0.2% 6,500 Libbey Inc. ................................... 174,687 ----------- INDUSTRIAL MACHINERY--0.2% 1,800 Brooks Automation, Inc.* ...................... 130,050 2,700 Terex Corp.*/** ............................... 32,062 ----------- 162,112 ----------- INSURANCE - FINANCIAL GUARANTEE--1.0% 7,900 MGIC Investment Corp. ......................... 295,262 7,250 PMI Group, Inc. (The) ......................... 263,266 6,200 Radian Group Inc. ............................. 215,062 ----------- 773,590 ----------- INSURANCE - HEALTH & LIFE--0.2% 1,400 MONY Group Inc. (The) ......................... 40,075 5,600 StanCorp Financial Group, Inc. ................ 137,900 ----------- 177,975 ----------- INTERNET CONTENT--2.6% 1,200 About.com, Inc.*/** ........................... 84,300 100 DigitalThink, Inc.* ........................... 4,075 2,600 DoubleClick Inc.* ............................. 230,912 3,400 Go2Net, Inc.* ................................. 295,800 1,900 HomeStore.com, Inc.* .......................... 129,794 2,800 InfoSpace.com, Inc.* .......................... 607,600 100 net.Genesis Corp.* ............................ 5,681 1,400 Network Solutions, Inc.* ...................... 451,412 1,200 VerticalNet, Inc.*/** ......................... 264,000 ----------- 2,073,574 ----------- INTERNET SOFTWARE--2.3% 1,300 CacheFlow Inc.* ............................... 158,275 200 Chordiant Software, Inc.*/** .................. 7,000 1,200 E.piphany, Inc.* .............................. 263,850 2,500 F5 Networks, Inc.* ............................ 225,000 2,000 Inktomi Corp.* ................................ 274,250 5,700 Intraware, Inc.* .............................. 435,694 100 Niku Corp.* ................................... 6,900 1,800 Vignette Corp.* ............................... 414,900 300 Vitria Technology, Inc.* ...................... 56,587 ----------- 1,842,456 ----------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- LABORATORY ANALYTICAL INSTRUMENTS--0.2% 4,900 Varian Inc.* .................................. $ 195,388 ----------- LEISURE & ENTERTAINMENT--0.7% 1,200 Anchor Gaming* ................................ 49,950 2,600 Macrovision Corp.* ............................ 259,350 11,300 Station Casinos, Inc.* ........................ 221,762 ----------- 531,062 ----------- MACHINERY--2.0% 4,500 Advanced Energy Industries, Inc.*/** .......... 327,375 1,800 Asyst Technologies, Inc.* ..................... 82,575 2,700 Helix Technology Corp.** ...................... 192,037 6,600 Kulicke & Soffa Industries, Inc.* ............. 524,700 4,300 Tecumseh Products Co., Class A** .............. 185,437 3,800 Zebra Technologies Corp., Class A* ............ 252,937 ----------- 1,565,061 ----------- MEDICAL INSTRUMENTS & SUPPLIES--4.0% 1,100 Allscripts, Inc.* ............................. 75,900 3,800 Beckman Coulter, Inc. ......................... 182,875 7,300 Biomet, Inc. .................................. 240,900 6,200 Cooper Companies, Inc. (The) .................. 170,113 8,000 INAMED Corp.* ................................. 303,000 2,300 Mallinckrodt Inc. ............................. 56,638 5,200 Mentor Corp. .................................. 144,300 15,800 PolyMedica Corp.*/** .......................... 731,738 9,000 ResMed Inc.*/** ............................... 671,625 3,000 Techne Corp.* ................................. 257,344 7,100 Zoll Medical Corp.* ........................... 369,200 ----------- 3,203,633 ----------- MEDICAL & MEDICAL SERVICES--1.9% 1,400 Human Genome Sciences, Inc.* .................. 305,550 900 IDEXX Laboratories, Inc.* ..................... 26,606 1,100 Incyte Pharmaceuticals, Inc.* ................. 303,119 900 Invitrogen Corp.* ............................. 76,050 9,100 MedQuist Inc.* ................................ 234,325 1,400 Millennium Pharmaceuticals, Inc.*/** .......... 364,175 2,700 Pharmacopeia, Inc.*/** ........................ 183,769 ----------- 1,493,594 ----------- MOTOR HOMES--0.2% 9,400 Monaco Coach Corp.* ........................... 169,200 ----------- NATURAL GAS - DISTRIBUTION--0.1% 4,000 UGI Corp. ..................................... 75,000 ----------- OFFICE & BUSINESS EQUIPMENT--0.3% 10,400 United Stationers Inc.* ....................... 279,500 ----------- The accompanying notes are an integral part of the financial statements. 14 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- OIL EQUIPMENT & SERVICES--0.9% 8,200 BJ Services Co.* .............................. $ 467,913 9,400 ENSCO International Inc. ...................... 284,350 ----------- 752,263 ----------- OIL & GAS FIELD EXPLORATION--2.0% 4,500 Atwood Oceanics, Inc.* ........................ 239,063 7,500 Helmerich & Payne, Inc. ....................... 199,688 17,100 Key Energy Services, Inc.* .................... 169,931 13,600 Pioneer Natural Resources Co.* ................ 113,050 2,100 Rowan Companies, Inc. ......................... 52,763 4,500 Tidewater Inc. ................................ 127,406 3,000 USX-Marathon Group ............................ 64,875 8,600 UTI Energy Corp.*/** .......................... 275,738 25,100 Vintage Petroleum, Inc. ....................... 363,950 ----------- 1,606,464 ----------- OPTICAL INSTRUMENTS & LENSES--0.3% 14,200 Robotic Vision Systems, Inc.*/** .............. 248,500 ----------- PHARMACEUTICALS--3.1% 10,900 Alpharma Inc., Class A** ...................... 377,413 5,000 Andrx Corp.* .................................. 480,313 4,918 Bindley Western Industries, Inc.* ............. 84,528 4,000 Biogen, Inc.* ................................. 431,750 1,000 Express Scripts, Inc., Class A* ............... 46,063 13,300 IVAX Corp.* ................................... 302,575 4,100 Jones Pharma Inc. ............................. 294,175 9,150 King Pharmaceuticals, Inc.*/** ................ 436,341 1,200 Ligand Pharmaceuticals, Inc., Class B* ........ 26,100 ----------- 2,479,258 ----------- PLASTICS--0.4% 19,400 Tupperware Corp. .............................. 333,438 ----------- RESIDENTIAL CONSTRUCTION--0.3% 10,300 D.R. Horton, Inc. ............................. 115,875 4,400 Pulte Corp. ................................... 73,975 8,100 Standard Pacific Corp. ........................ 86,063 ----------- 275,913 ----------- RESTAURANTS--0.4% 5,800 Applebee's International, Inc. ................ 163,306 4,800 CEC Entertainment Inc.* ....................... 109,200 3,000 RARE Hospitality International, Inc. .......... 56,625 ----------- 329,131 ----------- RETAIL - CATALOG & MAIL ORDER HOUSES--0.1% 7,000 Sharper Image Corp.* .......................... 63,000 ----------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- RETAIL - COMPUTER EQUIPMENT--0.5% 8,800 Electronics Boutique Holdings Corp.* .......... $ 128,700 10,800 PC Connection, Inc.* .......................... 284,175 ----------- 412,875 ----------- RETAIL - DEPARTMENT STORES--0.3% 14,500 Ames Department Stores, Inc.*/** .............. 204,813 ----------- RETAIL - FAMILY CLOTHING STORES--0.3% 8,500 Factory 2-U Stores Inc.*/** ................... 206,125 ----------- RETAIL - INTERNET--0.3% 800 Chemdex Corp.*/** ............................. 179,900 4,600 VarsityBooks.com Inc.*/** ..................... 40,250 ----------- 220,150 ----------- RETAIL - JEWELRY STORES--0.5% 3,600 Tiffany & Co.*/** ............................. 231,075 2,400 Whitehall Jewellers, Inc.* .................... 46,950 3,600 Zale Corp.* ................................... 135,450 ----------- 413,475 ----------- RETAIL - SPECIALTY--0.4% 2,250 Cost Plus, Inc.* .............................. 41,766 2,100 Dollar Tree Stores, Inc.*/** .................. 81,506 9,200 Hot Topic, Inc.*/** ........................... 156,400 ----------- 279,672 ----------- RETAIL - SPECIALTY APPAREL--1.5% 14,500 American Eagle Outfitters, Inc.* .............. 369,750 7,500 Chico's FAS, Inc.* ............................ 94,688 6,400 Fossil, Inc.* ................................. 145,200 4,400 Guess?, Inc.* ................................. 93,775 3,800 Kenneth Cole Productions, Inc., Class A*/** ................................. 193,800 2,800 Men's Wearhouse, Inc. (The)*/** ............... 65,013 9,600 Pacific Sunwear of California, Inc.*/** ....... 244,200 ----------- 1,206,426 ----------- SAVINGS & LOAN ASSOCIATIONS--0.1% 3,400 Astoria Financial Corp. ....................... 80,962 ----------- SCHOOLS--0.5% 5,400 Education Management Corp.* ................... 70,200 12,500 Learning Tree International, Inc.* ............ 332,813 ----------- 403,013 ----------- The accompanying notes are an integral part of the financial statements. 15 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- SEMICONDUCTORS--9.1% 900 Alpha Industries, Inc.* ....................... $ 130,669 10,400 Amkor Technology, Inc.* ....................... 540,150 1,800 Atmel Corp.* .................................. 89,100 3,200 ATMI, Inc.* ................................... 151,000 800 Broadcom Corp., Class A* ...................... 157,900 1,500 Cree, Inc.* ................................... 281,813 5,800 Cypress Semiconductor Corp.* .................. 264,625 5,000 Elantec Semiconductor, Inc.* .................. 314,688 1,800 Electroglas, Inc.* ............................ 69,750 6,400 Fairchild Semiconductor Corp., Class A* ....... 241,600 3,900 GlobeSpan, Inc.*/** ........................... 294,450 3,800 International Rectifier Corp.* ................ 159,125 2,200 Lam Research Corp.*/** ........................ 343,475 9,400 Novellus Systems, Inc.* ....................... 557,538 1,500 Pericom Semiconductor Corp.* .................. 61,875 8,600 PMC-Sierra, Inc.* ............................. 1,660,338 5,000 QLogic Corp.* ................................. 780,000 1,400 SDL, Inc.* .................................... 574,000 600 Silicon Image, Inc.*/** ....................... 58,800 3,200 Silicon Valley Group, Inc.* ................... 81,000 2,900 TelCom Semiconductor, Inc.* ................... 64,163 1,400 TriQuint Semiconductor, Inc.*/** .............. 166,250 3,300 Varian Semiconductor Equipment Associates, Inc.* ........................... 191,813 ----------- 7,234,122 ----------- SERVICES - COMPUTER INTEGRATED SYSTEMS DESIGN--0.4% 900 Comverse Technology, Inc.* .................... 177,188 800 Cysive, Inc.* ................................. 85,600 300 Redback Networks Inc.*/** ..................... 89,550 ----------- 352,338 ----------- SERVICES - EMPLOYMENT AGENCIES--0.4% 1,000 Hall Kinion & Associates, Inc.* ............... 18,000 8,300 Korn/Ferry International* ..................... 311,250 ----------- 329,250 ----------- SERVICES - HEALTH CARE MANAGEMENT--0.2% 4,650 Accredo Health, Inc.* ......................... 137,175 ----------- SERVICES - MANAGEMENT CONSULTING--0.7% 10,300 MAXIMUS, Inc.* ................................ 352,131 5,500 TeleTech Holdings, Inc.* ...................... 208,313 ----------- 560,444 ----------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- STEEL PIPE & TUBES--0.1% 3,200 Maverick Tube Corp.* .......................... $ 72,000 ----------- TELECOMMUNICATIONS--3.7% 1,400 Copper Mountain Networks, Inc.* ............... 121,713 2,100 E-Tek Dynamics, Inc.* ......................... 573,825 1,600 Inet Technologies, Inc.* ...................... 69,400 2,576 JDS Uniphase Corp.* ........................... 679,420 3,500 Latitude Communications, Inc.* ................ 73,938 8,700 Lightbridge, Inc.* ............................ 205,538 8,800 MasTec, Inc.* ................................. 507,100 4,500 Net2Phone, Inc.* .............................. 260,438 26,400 TALK.com, Inc.* ............................... 445,500 ----------- 2,936,872 ----------- TELECOMMUNICATIONS EQUIPMENT--6.2% 6,200 ADC Telecommunications, Inc.* ................. 278,225 4,400 ADTRAN, Inc.*/** .............................. 323,675 5,700 Carrier Access Corp.*/** ...................... 323,475 2,600 CommScope, Inc.* .............................. 101,238 9,300 Corsair Communications, Inc.* ................. 265,050 5,800 Digital Lightwave, Inc.*/** ................... 482,850 5,100 Ditech Communications Corp.*/** ............... 557,175 6,000 Harmonic Inc.* ................................ 821,625 2,900 Powerwave Technologies, Inc.* ................. 463,638 1,400 Rural Cellular Corp., Class A ................. 77,350 5,400 ScanSource, Inc.* ............................. 205,200 9,200 Scientific-Atlanta, Inc. ...................... 944,725 1,400 Tollgrade Communications, Inc.* ............... 141,750 ----------- 4,985,976 ----------- TOYS--0.1% 6,400 JAKKS Pacific, Inc.* .......................... 105,600 ----------- TRANSPORTATION--0.5% 3,300 EGL, Inc.* .................................... 92,813 5,950 Forward Air Corp.* ............................ 136,850 1,300 Landstar Systems, Inc.* ....................... 73,044 2,800 USFreightways Corp. ........................... 93,100 ----------- 395,807 ----------- UTILITIES--1.4% 10,400 Calpine Corp.* ................................ 951,600 3,400 Minnesota Power, Inc. ......................... 52,063 9,000 Public Service Co. of New Mexico .............. 138,375 ----------- 1,142,038 ----------- The accompanying notes are an integral part of the financial statements. 16 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- VITAMINS & NUTRITION PRODUCTS--0.1% 5,400 Rexall Sundown, Inc.*/** ...................... $ 81,000 ----------- WHOLESALE - DRUG DISTRIBUTION--0.6% 6,400 AmeriSource Health Corp., Class A* ............ 93,200 1,700 Cardinal Health, Inc. ......................... 70,125 6,475 Priority Healthcare Corp., Class B* ........... 310,800 ----------- 474,125 ----------- Total Common Stocks (Cost $53,683,090) .......................... 78,609,407 ----------- - ----------------------------------------------------------------------- PRINCIPAL VALUE AMOUNT (000's) (NOTE 1) - ----------------------------------------------------------------------- REPURCHASE AGREEMENT--1.8% $1,428 Bear, Stearns & Co. Inc. (Agreement dated 02/29/00, to be repurchased at $1,427,851) 5.76%, 03/01/00 (Cost $1,427,623) (Note 6) .................. $ 1,427,623 ----------- Total Investments -- 100.3% (Cost $55,110,713) .......................... 80,037,030 ----------- Liabilities in Excess of Other Assets -- (0.3%) ...................... (235,836) ----------- Net Assets -- 100.0% .......................... $79,801,194 =========== - ------------ *Non-income producing. **Security or a portion thereof is out on loan. The accompanying notes are an integral part of the financial statements. 17 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MID CAP FUND+ PORTFOLIO OF INVESTMENTS FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMMON STOCKS--98.5% ADVERTISING--0.0% 100 Avenue A, Inc. * .............................. $ 7,200 ----------- AEROSPACE--0.8% 5,900 General Dynamics Corp. ........................ 255,175 1,300 Northrop Grumman Corp. ........................ 59,069 ----------- 314,244 ----------- AUTOMOBILE PARTS & EQUIPMENT--0.9% 12,000 Delphi Automotive Systems Corp.** ............. 200,250 6,200 Lear Corp.* ................................... 130,975 4,000 Meritor Automotive, Inc. ...................... 56,000 ----------- 387,225 ----------- AUTOMOBILE RENTALS--0.6% 7,200 Hertz Corp. (The), Class A** .................. 257,850 ----------- BANKS--0.7% 8,600 North Fork Bancorporation, Inc. ............... 140,825 4,600 Provident Financial Group, Inc. ............... 129,375 ----------- 270,200 ----------- BUILDING SUPPLIES--2.7% 15,000 Lafarge Corp. ................................. 295,312 22,100 Sherwin-Williams Co. (The)** .................. 422,662 12,600 USG Corp. ..................................... 409,500 ----------- 1,127,474 ----------- BUSINESS SERVICES--1.9% 600 Catalina Marketing Corp.* ..................... 51,075 8,200 CSG Systems International, Inc.* .............. 421,275 4,600 Diamond Technology Partners Inc.* ............. 314,525 ----------- 786,875 ----------- CHEMICALS - DIVERSIFIED--1.0% 8,200 FMC Corp.* .................................... 396,162 ----------- CHEMICALS - SPECIALTY--0.8% 20,500 Engelhard Corp. ............................... 279,312 3,400 W.R. Grace & Co.* ............................. 34,212 ----------- 313,524 ----------- COMMERCIAL PRINTING--0.1% 1,150 Valassis Communications, Inc.* ................ 31,841 ----------- COMPUTER COMPONENTS--0.8% 1,500 Advanced Digital Information Corp.* ........... 135,937 2,000 SanDisk Corp.* ................................ 178,000 ----------- 313,937 ----------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMPUTER DATA SECURITY--1.5% 1,900 ISS Group, Inc* ............................... $ 199,500 1,600 VeriSign, Inc.* ............................... 404,800 ----------- 604,300 ----------- COMPUTER NETWORKING PRODUCTS--1.7% 2,200 Adaptec, Inc.* ................................ 90,200 700 Brocade Communications Systems, Inc.* ......... 202,387 1,800 Extreme Networks, Inc.* ....................... 200,250 700 Juniper Networks, Inc.* ....................... 192,019 300 Xircom, Inc.* ................................. 12,459 ----------- 697,315 ----------- COMPUTER PERIPHERAL EQUIPMENT--0.9% 6,600 CDW Computer Centers, Inc.* ................... 362,175 ----------- COMPUTER SERVICES--0.3% 900 Breakaway Solution, Inc.*/** .................. 112,500 ----------- COMPUTER SOFTWARE--17.9% 4,200 Adobe Systems Inc. ............................ 428,400 3,400 Apple Computer, Inc.* ......................... 389,725 4,900 AppNet, Inc.* ................................. 219,887 800 BEA Systems, Inc.* ............................ 101,250 2,300 Computer Associates International, Inc. ....... 147,919 19,400 Diebold, Inc. ................................. 475,300 37,700 Informix Corp.* ............................... 603,200 4,800 Mercury Interactive Corp.* .................... 462,600 3,600 Pixar, Inc.*/** ............................... 126,000 7,100 Rational Software Corp.* ...................... 504,987 7,500 Remedy Corp.* ................................. 425,156 11,500 Siebel Systems, Inc.* ......................... 1,594,906 8,700 VERITAS Software Corp.* ....................... 1,721,512 4,800 Viant Corp.* .................................. 182,100 ----------- 7,382,942 ----------- CONSUMER PRODUCTS--0.9% 10,900 Black & Decker Corp. (The) .................... 359,019 ----------- ELECTRICAL EQUIPMENT--0.9% 2,800 Credence Systems Corp.* ....................... 373,100 ----------- ELECTRONIC COMPONENTS & ACCESSORIES--2.9% 1,700 ANADIGICS, Inc.* .............................. 229,500 1,000 Electro Scientific Industries, Inc.* .......... 56,687 4,800 Jabil Circuit, Inc.* .......................... 333,300 1,100 Sanmina Corp.*/** ............................. 128,769 900 TranSwitch Corp. .............................. 105,750 8,000 Vishay Intertechnology, Inc.* ................. 344,000 ----------- 1,198,006 ----------- The accompanying notes are an integral part of the financial statements. 18 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MID CAP FUND+ PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- ELECTRONICS--1.0% 800 DSP Group, Inc.* .............................. $ 70,250 6,000 Johnson Controls, Inc. ........................ 320,250 300 Polycom, Inc.* ................................ 34,894 ----------- 425,394 ----------- ENERGY--1.2% 1,300 DTE Energy Co.** .............................. 39,244 1,900 Entergy Corp. ................................. 38,475 19,200 PPL Corp. ..................................... 386,400 1,900 Reliant Energy, Inc. .......................... 39,069 ----------- 503,188 ----------- FINANCIAL SERVICES--3.3% 2,600 Ambac Financial Group, Inc. ................... 114,237 9,500 CIT Group, Inc. (The), Class A ................ 133,000 2,800 Deluxe Corp. .................................. 65,625 3,500 Federated Investors, Inc., Class B** .......... 81,594 7,900 FINOVA Group, Inc. (The) ...................... 226,137 2,300 H&R Block, Inc. ............................... 100,912 4,000 Knight Trimark Group, Inc.* ................... 187,500 8,900 Metris Companies, Inc.** ...................... 230,287 3,500 NCO Group, Inc.* .............................. 81,812 6,600 Profit Recovery Group International, Inc. (The)*/** .............................. 122,100 ----------- 1,343,204 ----------- FOOD & AGRICULTURE--3.4% 20,400 ConAgra, Inc. ................................. 334,050 2,000 Dean Foods Co. ................................ 54,250 25,400 IBP, Inc. ..................................... 317,500 13,900 International Home Foods, Inc.* ............... 235,431 8,300 Keebler Foods Co.* ............................ 210,612 6,600 McCormick & Co., Inc.* ........................ 180,675 4,800 U.S. Foodservice* ............................. 84,900 ----------- 1,417,418 ----------- HEALTH CARE--1.6% 10,100 PacifiCare Health Systems, Inc.* .............. 458,919 3,100 Wellpoint Health Networks Inc.* ............... 209,250 ----------- 668,169 ----------- HOME FURNISHINGS/HOUSEWARES--0.1% 3,500 Furniture Brands International, Inc.* ......... 56,219 ----------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- HOUSEHOLD APPLIANCES--0.2% 1,300 Whirlpool Corp. ............................... $ 70,606 ----------- INSURANCE--0.2% 2,300 Loews Corp. ................................... 102,350 ----------- INSURANCE - FINANCIAL GUARANTEE--2.6% 8,700 MGIC Investment Corp. ......................... 325,162 12,600 PMI Group, Inc. (The) ......................... 457,537 8,700 Radian Group Inc. ............................. 301,781 ----------- 1,084,480 ----------- INSURANCE - HEALTH & LIFE--0.5% 7,100 AXA Financial, Inc. ........................... 212,556 ----------- INTERNET CONTENT--1.3% 4,500 Go2Net, Inc.* ................................. 391,500 900 MyPoints.com, Inc.*/** ........................ 42,188 300 Network Solutions, Inc.* ...................... 96,731 ----------- 530,419 ----------- INTERNET SOFTWARE--0.0% 100 Niku Corp.* ................................... 6,900 ----------- LEISURE & ENTERTAINMENT--0.9% 4,800 Cablevision Systems Corp., Class A*/** ........ 308,100 4,000 MGM Grand, Inc. ............................... 79,500 ----------- 387,600 ----------- LUMBER & WOOD PRODUCTS--1.1% 21,100 Georgia-Pacific Corp. (Timber Group) .......... 465,519 ----------- MACHINERY--1.5% 2,500 Advanced Energy Industries, Inc.* ............. 181,875 3,600 Kulicke & Soffa Industries, Inc.* ............. 286,200 2,500 Zebra Technologies Corp., Class A* ............ 166,406 ----------- 634,481 ----------- MANUFACTURING--2.1% 5,200 American Standard Companies, Inc.* ............ 181,350 22,300 Pall Corp. .................................... 440,425 4,800 Pentair, Inc. ................................. 165,000 3,600 Trinity Industries, Inc. ...................... 79,650 ----------- 866,425 ----------- The accompanying notes are an integral part of the financial statements. 19 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MID CAP FUND+ PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- MEDICAL INSTRUMENTS & SUPPLIES--3.0% 2,200 Baxter International, Inc. .................... $ 119,900 4,800 Beckman Coulter, Inc. ......................... 231,000 9,300 Biomet, Inc. .................................. 306,900 14,300 Mallinckrodt Inc. ............................. 352,138 400 Techne Corp.* ................................. 34,313 1,900 Waters Corp.* ................................. 186,319 ----------- 1,230,570 ----------- MEDICAL & MEDICAL SERVICES--0.1% 200 CuraGen Corp.* ................................ 45,700 ----------- NATURAL GAS - DISTRIBUTION--3.4% 1,400 El Paso Energy Corp. .......................... 51,888 26,500 KeySpan Corp. ................................. 539,938 11,300 National Fuel Gas Co. ......................... 462,594 18,800 Sempra Energy** ............................... 338,400 ----------- 1,392,820 ----------- NEWSPAPER & PUBLISHING--0.1% 900 Times Mirror Co. (The), Class A ............... 45,900 ----------- OIL EQUIPMENT & SERVICES--1.7% 1,100 BJ Services Co.* .............................. 62,769 20,800 ENSCO International Inc. ...................... 629,200 ----------- 691,969 ----------- OIL & GAS FIELD EXPLORATION--5.0% 5,200 Amerada Hess Corp.** .......................... 262,925 1,600 Helmerich & Payne, Inc. ....................... 42,600 7,400 Kerr-McGee Corp. .............................. 331,150 4,400 Occidental Petroleum Corp. .................... 70,675 9,100 Ocean Energy Inc.* ............................ 97,256 8,000 Rowan Companies, Inc.* ........................ 201,000 15,900 Tidewater Inc. ................................ 450,169 31,800 Union Pacific Resources Group, Inc. ........... 284,213 15,000 USX-Marathon Group ............................ 324,375 ----------- 2,064,363 ----------- PHARMACEUTICALS--0.8% 1,300 Andrx Corp.* .................................. 124,881 5,450 IVAX Corp.* ................................... 123,988 1,400 Medicis Pharmaceutical Corp., Class A* ........ 70,613 ----------- 319,482 ----------- PHOTOGRAPHIC EQUIPMENT--0.9% 6,600 Eastman Kodak Co. ............................. 378,263 ----------- RESTAURANTS--1.0% 18,200 Brinker International, Inc.* .................. 395,850 ----------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- RETAIL - DEPARTMENT STORES--1.2% 3,400 May Department Stores Co. (The)** ............. $ 89,038 15,300 Sears, Roebuck & Co. .......................... 421,706 ----------- 510,744 ----------- RETAIL - JEWELRY STORES--1.1% 11,600 Zale Corp.* ................................... 436,450 ----------- RETAIL - SPECIALTY--0.8% 8,100 Dollar Tree Stores, Inc.*/** .................. 314,381 ----------- RETAIL - SPECIALTY APPAREL--1.6% 12,900 American Eagle Outfitters, Inc.*/** ........... 328,950 9,600 Limited, Inc. (The) ........................... 326,400 ----------- 655,350 ----------- SAVINGS & LOAN ASSOCIATIONS--2.6% 18,400 Astoria Financial Corp. ....................... 438,150 27,000 Dime Bancorp, Inc. ............................ 329,063 13,000 Washington Mutual, Inc. ....................... 287,625 ----------- 1,054,838 ----------- SEMICONDUCTORS--3.3% 5,600 Amkor Technology, Inc.* ....................... 290,850 500 Cree, Inc.* ................................... 93,938 4,500 Cypress Semiconductor Corp.* .................. 205,313 8,700 Fairchild Semiconductor Corp., Class A* ....... 328,425 6,500 International Rectifier Corp.* ................ 272,188 2,600 Novellus Systems, Inc.* ....................... 154,212 ----------- 1,344,926 ----------- SERVICES - COMPUTER INTEGRATED SYSTEMS DESIGN--0.1% 300 Comverse Technology, Inc.* .................... 59,063 ----------- SERVICES - EMPLOYMENT AGENCIES--1.6% 6,000 Manpower Inc. ................................. 196,125 11,000 Robert Half International Inc.* ............... 464,750 ----------- 660,875 ----------- TELECOMMUNICATIONS--1.8% 3,000 Inet Technologies, Inc.* ...................... 130,125 5,800 MasTec, Inc.* ................................. 334,225 1,400 Nextel Communications, Inc., Class A* ......... 190,838 3,500 Price Communications Corp.* ................... 83,563 ----------- 738,751 ----------- The accompanying notes are an integral part of the financial statements. 20 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MID CAP FUND+ PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- TELECOMMUNICATIONS EQUIPMENT--5.9% 3,500 ADC Telecommunications, Inc.* ................. $ 157,063 5,100 Carrier Access Corp.*/** ...................... 289,425 5,400 Digital Lightwave, Inc*/** .................... 449,550 4,000 Ditech Communications Corp.* .................. 437,000 3,500 Harmonic Inc.* ................................ 479,281 2,300 Powerwave Technologies, Inc.* ................. 367,713 2,700 Scientific-Atlanta, Inc. ...................... 277,256 ----------- 2,457,288 ----------- TOBACCO--0.4% 9,800 R.J. Reynolds Tobacco Holdings, Inc. .......... 176,400 ----------- TRANSPORTATION--0.1% 1,000 USFreightways Corp. ........................... 33,250 ----------- UTILITIES--1.9% 1,000 Calpine Corp.* ................................ 91,500 6,100 Minnesota Power, Inc. ......................... 93,406 10,000 Public Service Enterprise Group Inc. .......... 290,000 15,400 Puget Sound Energy, Inc. ...................... 312,813 ----------- 787,719 ----------- WHOLESALE - DRUG DISTRIBUTION--0.9% 9,200 Cardinal Health, Inc. ......................... 379,500 ----------- WHOLESALE - GROCERIES & GENERAL LINE--0.9% 23,000 SUPERVALU INC. ................................ 395,313 ----------- Total Common Stocks (Cost $40,586,913) .......................... 40,640,582 ----------- - ----------------------------------------------------------------------- PRINCIPAL VALUE AMOUNT (000's) (NOTE 1) - ----------------------------------------------------------------------- REPURCHASE AGREEMENT--1.9% $782 Bear, Stearns & Co. Inc. (Agreement dated 02/29/00 to be repurchased at $781,759) 5.76%, 03/01/00 (Cost $781,633) (Note 6) .................... $ 781,633 ----------- Total Investments -- 100.4% (Cost $41,368,546) .......................... 41,422,215 ----------- Liabilities in Excess of Other Assets -- (0.4%) ...................... (160,242) ----------- Net Assets -- 100.0% .......................... $41,261,973 =========== - ------------- +Formerly known as Growth & Value Fund. *Non-income producing. **Security or a portion thereof is out on loan. The accompanying notes are an integral part of the financial statements. 21 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] LARGER CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMMON STOCKS--91.2% AEROSPACE--1.7% 300 Cordant Technologies, Inc. .................... $ 9,712 1,000 General Dynamics Corp. ........................ 43,250 200 Northrop Grumman Corp. ........................ 9,087 ---------- 62,049 ---------- APPAREL--0.4% 700 Jones Apparel Group, Inc.* .................... 15,837 ---------- AUTOMOBILE PARTS & EQUIPMENT--1.4% 1,321 Delphi Automotive Systems Corp.** ............. 22,044 1,000 Lear Corp.* ................................... 21,125 700 Meritor Automotive, Inc. ...................... 9,800 ---------- 52,969 ---------- AUTOMOBILE RENTALS--0.3% 300 Hertz Corp. (The), Class A .................... 10,744 ---------- BANKS--9.9% 1,100 AmSouth Bancorporation** ...................... 15,950 700 Bank of America Corp. ......................... 32,244 2,300 BB&T Corp.** .................................. 54,050 600 Chase Manhattan Corp., (The) .................. 47,775 500 Comerica Inc. ................................. 18,469 3,100 FleetBoston Financial Corp. ................... 84,475 312 Hudson United Bancorp ......................... 6,298 1,300 North Fork Bancorporation, Inc. ............... 21,287 1,700 PNC Financial Services Group .................. 65,769 700 UnionBanCal Corp. ............................. 22,487 ---------- 368,804 ---------- BROKERAGE--1.9% 300 Lehman Brothers Holdings Inc. ................. 21,750 1,300 Paine Webber Group Inc. ....................... 49,725 ---------- 71,475 ---------- BUILDING SUPPLIES--1.9% 700 Lafarge Corp. ................................. 13,781 2,300 Sherwin-Williams Co. (The)** .................. 43,987 400 USG Corp. ..................................... 13,000 ---------- 70,768 ---------- CHEMICALS - DIVERSIFIED--0.9% 700 FMC Corp.* .................................... 33,819 ---------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- CHEMICALS - SPECIALTY--0.3% 300 Engelhard Corp. ............................... $ 4,087 200 Millennium Chemicals Inc. ..................... 2,800 400 W.R. Grace & Co.* ............................. 4,025 ---------- 10,912 ---------- COMMERCIAL PRINTING--0.5% 650 Valassis Communications, Inc.* ................ 17,997 ---------- COMPUTER NETWORKING PRODUCTS--0.1% 100 Adaptec, Inc.* ................................ 4,100 ---------- COMPUTER SOFTWARE--3.2% 300 Adobe Systems Inc. ............................ 30,600 200 Apple Computer, Inc.* ......................... 22,925 500 Computer Associates International, Inc. ....... 32,156 2,100 Informix Corp.* ............................... 33,600 ---------- 119,281 ---------- CONSUMER PRODUCTS--2.1% 1,200 Black & Decker Corp., (The) ................... 39,525 2,000 Philip Morris Companies Inc. .................. 40,125 ---------- 79,650 ---------- ELECTRIC UTILITY--0.3% 500 GPU, Inc. ..................................... 12,437 ---------- ELECTRONIC COMPONENTS & ACCESSORIES--0.3% 300 Vishay Intertechnology, Inc.* ................. 12,900 ---------- ELECTRONICS--1.3% 900 Johnson Controls, Inc. ........................ 48,037 ---------- ENERGY--3.2% 100 Coastal Corp. (The)** ......................... 4,206 800 DTE Energy Co.** .............................. 24,150 1,600 Entergy Corp. ................................. 32,400 1,100 FirstEnergy Corp.** ........................... 20,556 300 Pinnacle West Capital Corp. ................... 8,287 1,400 PPL Corp. ..................................... 28,175 ---------- 117,774 ---------- FINANCIAL SERVICES--7.8% 1,000 Ambac Financial Group, Inc. ................... 43,937 100 Bank United Corp., Class A .................... 2,619 1,400 CIT Group, Inc. (The), Class A ................ 19,600 1,300 Citigroup Inc. ................................ 67,194 100 Deluxe Corp. .................................. 2,344 1,000 Edwards (A.G.), Inc. .......................... 31,687 900 Fannie Mae .................................... 47,700 The accompanying notes are an integral part of the financial statements. 22 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] LARGER CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- FINANCIAL SERVICES--(CONTINUED) 500 FINOVA Group, Inc. (The) ...................... $ 14,312 100 H&R Block, Inc. ............................... 4,387 300 Heller Financial, Inc.** ...................... 5,644 1,600 Household International, Inc.** ............... 51,100 ---------- 290,524 ---------- FOOD & AGRICULTURE--1.8% 3,300 ConAgra, Inc. ................................. 54,037 300 IBP, Inc. ..................................... 3,750 300 International Home Foods, Inc.* ............... 5,081 200 Keebler Foods Co.* ............................ 5,075 ---------- 67,943 ---------- HEALTH CARE--0.6% 500 PacifiCare Health Systems, Inc.* .............. 22,719 ---------- HOME FURNISHINGS/HOUSEWARES--0.1% 300 Furniture Brands International, Inc.* ......... 4,819 ---------- HOUSEHOLD APPLIANCES--1.2% 800 Whirlpool Corp. ............................... 43,450 ---------- INSURANCE--0.9% 200 Allmerica Financial Corp. ..................... 8,350 600 Loews Corp. ................................... 26,700 ---------- 35,050 ---------- INSURANCE - FINANCIAL GUARANTEE--2.4% 1,100 MGIC Investment Corp. ......................... 41,113 1,000 PMI Group, Inc. (The) ......................... 36,313 400 Radian Group Inc. ............................. 13,875 ---------- 91,301 ---------- INSURANCE - HEALTH & LIFE--0.8% 300 AXA Financial, Inc. ........................... 8,981 200 CIGNA Corp. ................................... 14,762 300 Nationwide Financial Services, Inc., Class A ..................................... 6,919 ---------- 30,662 ---------- INSURANCE - LIFE--0.8% 600 American General Corp. ........................ 31,313 ---------- LEISURE & ENTERTAINMENT--1.6% 100 Brunswick Corp. ............................... 1,769 300 Cablevision Systems Corp., Class A*/** ........ 19,256 200 USA Networks, Inc.*/** ........................ 4,488 1,000 Walt Disney Co., (The) ........................ 33,500 ---------- 59,013 ---------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- LUMBER & WOOD PRODUCTS--1.2% 400 Georgia-Pacific Corp. (Timber Group) .......... $ 8,825 1,000 Georgia-Pacific Group ......................... 34,688 ---------- 43,513 ---------- MACHINERY--0.4% 200 Kulicke & Soffa Industries, Inc.* ............. 15,900 ---------- MANUFACTURING--1.8% 600 American Standard Companies Inc.* ............. 20,925 300 Minnesota Mining & Manufacturing Co., (3M) ................................... 26,438 500 Pall Corp. .................................... 9,875 300 Pentair, Inc. ................................. 10,313 ---------- 67,551 ---------- MEDICAL INSTRUMENTS & SUPPLIES--1.0% 400 Baxter International, Inc. .................... 21,800 600 Mallinckrodt Inc. ............................. 14,775 ---------- 36,575 ---------- NATURAL GAS - DISTRIBUTION--3.8% 1,700 El Paso Energy Corp. .......................... 63,006 1,500 KeySpan Corp. ................................. 30,563 300 National Fuel Gas Co. ......................... 12,281 2,100 Sempra Energy ................................. 37,800 ---------- 143,650 ---------- NEWSPAPER & PUBLISHING--1.9% 1,000 Knight-Ridder, Inc. ........................... 46,875 500 Times Mirror Co. (The), Class A ............... 25,500 ---------- 72,375 ---------- OIL & GAS FIELD EXPLORATION--9.3% 1,000 Amerada Hess Corp.** .......................... 50,563 1,600 Conoco Inc., Class B .......................... 31,500 600 Helmerich & Payne, Inc. ....................... 15,975 1,200 Kerr-McGee Corp. .............................. 53,700 3,100 Occidental Petroleum Corp. .................... 49,794 300 Ocean Energy Inc.* ............................ 3,206 800 Phillips Petroleum Co. ........................ 30,600 500 Pioneer Natural Resources Co.* ................ 4,156 1,200 Tidewater Inc. ................................ 33,975 2,900 Union Pacific Resources Group Inc. ............ 25,919 2,300 USX-Marathon Group ............................ 49,738 ---------- 349,126 ---------- PAPER & ALLIED PRODUCTS--0.8% 900 Willamette Industries, Inc. ................... 30,544 ---------- The accompanying notes are an integral part of the financial statements. 23 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] LARGER CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- PHOTOGRAPHIC EQUIPMENT--1.9% 1,200 Eastman Kodak Co. ............................. $ 68,775 ---------- PLASTICS--0.1% 300 Tupperware Corp. .............................. 5,156 ---------- RESTAURANTS--0.2% 300 Tricon Global Restaurants, Inc.* .............. 7,988 ---------- RETAIL - DEPARTMENT STORES--2.1% 300 Federated Department Stores, Inc.*/** ......... 11,006 300 May Department Stores Co. (The)** ............. 7,856 2,100 Sears, Roebuck & Co. .......................... 57,881 ---------- 76,743 ---------- RETAIL - JEWELRY STORES--0.2% 200 Zale Corp.* ................................... 7,525 ---------- RETAIL - SPECIALTY APPAREL--1.5% 1,600 Limited, Inc. ................................. 54,400 ---------- SAVINGS & LOAN ASSOCIATIONS--1.2% 800 Astoria Financial Corp. ....................... 19,050 1,000 Dime Bancorp, Inc. ............................ 12,188 300 Golden State Bancorp Inc.* .................... 3,863 500 Washington Mutual, Inc. ....................... 11,063 ---------- 46,164 ---------- SEMICONDUCTORS--1.2% 400 Cypress Semiconductor Corp.* .................. 18,250 700 Fairchild Semiconductor Corp., Class A* ....... 26,425 ---------- 44,675 ---------- TELECOMMUNICATIONS--10.3% 2,000 AT&T Corp. .................................... 98,875 2,332 Bell Atlantic Corp. ........................... 114,122 3,000 BellSouth Corp. ............................... 122,250 100 Motorola, Inc. ................................ 17,050 900 SBC Communications Inc. ....................... 34,200 ---------- 386,497 ---------- TELECOMMUNICATIONS EQUIPMENT--0.3% 100 Scientific-Atlanta, Inc. ...................... 10,269 ---------- TRANSPORTATION--0.7% 1,000 Burlington Northern Santa Fe Corp. ............ 19,688 200 USFreightways Corp. ........................... 6,650 ---------- 26,338 ---------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- UTILITIES--2.1% 300 Allegheny Energy, Inc. ........................ $ 7,781 300 Minnesota Power, Inc. ......................... 4,594 400 PECO Energy Co. ............................... 14,925 1,600 Public Service Enterprise Group Inc. .......... 46,400 300 Puget Sound Energy, Inc. ...................... 6,094 ---------- 79,794 ---------- WHOLESALE - DRUG DISTRIBUTION--0.7% 600 Cardinal Health, Inc. ......................... 24,750 ---------- WHOLESALE - GROCERIES & GENERAL LINE--0.8% 1,800 SUPERVALU INC. ................................ 30,938 ---------- Total Investments -- 91.2% (Cost $3,974,668) ........................... 3,415,593 ---------- Other Assets in Excess of Liabilities -- 8.8% ...................... 328,043 ---------- Net Assets -- 100.0% .......................... $3,743,636 ========== - ----------- *Non-income producing. **Security or a portion thereof is out on loan. The accompanying notes are an integral part of the financial statements. 24 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- COMMON STOCKS--94.5% ADVERTISING--0.3% 1,100 ADVO, Inc.* ................................... $ 30,525 ---------- AEROSPACE--0.7% 2,000 Cordant Technologies, Inc. .................... 64,750 ---------- AMUSEMENT & RECREATIONAL SERVICES--0.6% 1,900 Polaris Industries, Inc. ...................... 58,187 ---------- APPAREL--2.1% 5,700 Kellwood Co. .................................. 96,187 2,900 Nautica Enterprises, Inc.* .................... 30,631 5,900 Russell Corp. ................................. 81,494 ---------- 208,312 ---------- AUTOMOBILE PARTS & EQUIPMENT--3.4% 1,300 American Axle & Manufacturing Holdings, Inc.* ............................. 18,119 4,700 Arvin Industries, Inc. ........................ 86,362 3,000 Borg-Warner Automotive, Inc. .................. 96,000 1,200 Lear Corp.* ................................... 25,350 6,100 Meritor Automotive, Inc. ...................... 85,400 1,700 Tower Automotive, Inc.*/** .................... 20,187 ---------- 331,418 ---------- AUTOMOBILE RENTALS--0.3% 500 Avis Rent A Car, Inc.* ........................ 7,281 2,000 Dollar Thrifty Automotive Group, Inc.* ........ 26,250 ---------- 33,531 ---------- BANKS--6.3% 1,000 Centura Banks, Inc. ........................... 33,750 9,500 Colonial BancGroup, Inc. (The)** .............. 84,312 1,600 GBC Bancorp** ................................. 43,200 8,100 Hibernia Corporation, Class A ................. 73,406 4,720 Hudson United Bancorp ......................... 95,285 4,100 North Fork Bancorporation, Inc. ............... 67,137 500 Oriental Financial Group Inc.** ............... 9,500 3,500 Pacific Century Financial Corp. ............... 53,156 500 Provident Bankshares Corp. .................... 8,062 2,900 Provident Financial Group, Inc. ............... 81,562 3,600 TCF Financial Corp. ........................... 71,325 ---------- 620,695 ---------- BUILDING - MAINTENANCE & SERVICE--0.1% 1,200 Encompass Services Corp.* ..................... 9,150 ---------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- BUILDING SUPPLIES--2.1% 3,800 Hughes Supply, Inc. ........................... $ 67,925 4,300 Lafarge Corp. ................................. 84,656 1,800 USG Corp. ..................................... 58,500 ---------- 211,081 ---------- BUSINESS SERVICES--1.2% 800 Affiliated Computer Services, Inc., Class A*/** ................................. 25,200 1,100 Eaton Vance Corp. ............................. 45,581 6,200 IT Group, Inc.* ............................... 47,275 ---------- 118,056 ---------- CHEMICALS - DIVERSIFIED--0.3% 700 FMC Corp.* .................................... 33,819 ---------- CHEMICALS - SPECIALTY--1.3% 1,900 Cytec Industries Inc.* ........................ 46,075 2,200 Engelhard Corp. ............................... 29,975 900 Millennium Chemicals, Inc. .................... 12,600 4,000 W.R. Grace & Co.* ............................. 40,250 ---------- 128,900 ---------- COAL--0.8% 6,600 CONSOL Energy Inc. ............................ 76,725 ---------- COMPUTER PERIPHERAL EQUIPMENT--0.5% 1,600 In Focus Systems, Inc.* ....................... 53,600 ---------- COMPUTER PROGRAMMING AND DATA PROCESSING--0.3% 800 Bell & Howell Co.* ............................ 26,200 ---------- COMPUTER SERVICES--0.6% 3,700 Pomeroy Computer Resources, Inc.* ............. 60,587 ---------- COMPUTER SOFTWARE--3.1% 1,900 Autodesk, Inc.** .............................. 84,906 1,500 CACI International Inc.* ...................... 42,656 4,200 Diebold, Inc. ................................. 102,900 800 Informix Corp.* ............................... 12,800 400 InterVoice-Brite, Inc.* ....................... 14,450 950 THQ Inc.* ..................................... 19,178 1,200 Unigraphics Solutions Inc.* ................... 33,225 ---------- 310,115 ---------- COMPUTERS--0.5% 3,000 Mentor Graphics Corp.* ........................ 51,375 ---------- CONSTRUCTION--0.6% 2,500 Centex Construction Products, Inc. ............ 58,125 ---------- The accompanying notes are an integral part of the financial statements. 25 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- CONSUMER PRODUCTS--1.4% 2,800 Dial Corp. (The) .............................. $ 40,250 800 Polaroid Corp. ................................ 20,050 8,200 Sturm, Ruger & Co. ............................ 79,950 ---------- 140,250 ---------- CONTAINERS--0.6% 6,000 American National Can Group, Inc. ............. 60,000 ---------- ELECTRIC SERVICES--1.6% 6,200 Conectiv, Inc. ................................ 88,350 1,400 IPALCO Enterprises, Inc. ...................... 23,712 2,500 OGE Energy Corp. .............................. 42,969 ---------- 155,031 ---------- ELECTRICAL EQUIPMENT--1.3% 2,500 C&D Technologies, Inc. ........................ 116,875 200 SBS Technologies, Inc.* ....................... 10,887 ---------- 127,762 ---------- ELECTRONIC COMPONENTS & ACCESSORIES--3.8% 400 Actel Corp. ................................... 13,025 1,700 Arrow Electronics, Inc.* ...................... 51,425 2,700 Comptek Research, Inc.*/** .................... 39,150 700 L-3 Communications Holdings, Inc.* ............ 29,794 7,100 Pioneer-Standard Electronics, Inc.** .......... 130,462 2,300 Technitrol, Inc. .............................. 107,812 ---------- 371,668 ---------- ELECTRONICS--0.6% 1,000 Cohu, Inc. .................................... 56,375 ---------- ENERGY--0.9% 6,300 Questar Corp. ................................. 87,806 ---------- ENGINES--0.3% 1,000 Cummins Engine Co., Inc. ...................... 33,312 ---------- FINANCIAL SERVICES--6.5% 2,200 Advanta Corp., Class A** ...................... 40,975 4,800 Bank United Corp., Class A .................... 125,700 800 Deluxe Corp. .................................. 18,750 9,400 Doral Financial Corp. ......................... 92,237 2,000 Federated Investors, Inc., Class B** .......... 46,625 2,500 FINOVA Group Inc. (The) ....................... 71,562 5,300 Heller Financial, Inc. ........................ 99,706 1,000 John Nuveen Co.(The), Class A** ............... 34,500 3,600 LaBranche & Co. Inc.* ......................... 43,650 2,600 Neuberger Berman, Inc. ........................ 66,950 ---------- 640,655 ---------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- FOOD & AGRICULTURE--3.3% 3,000 Del Monte Foods Co.*/** ....................... $ 37,500 6,000 IBP, Inc. ..................................... 75,000 1,900 International Home Foods, Inc.* ............... 32,181 6,200 International Multifoods Corp.** .............. 67,812 2,700 Pilgrim's Pride Corp., Class B ................ 21,600 5,100 Universal Foods Corp. ......................... 92,119 ---------- 326,212 ---------- HEALTH CARE--0.5% 1,100 PacifiCare Health Systems, Inc.* .............. 49,981 ---------- HOME FURNISHINGS/HOUSEWARES--0.8% 3,100 Furniture Brands International, Inc.* ......... 49,794 2,400 Shaw Industries, Inc. ......................... 30,450 ---------- 80,244 ---------- HOUSEHOLD PRODUCTS--1.3% 4,600 Libbey Inc. ................................... 123,625 ---------- INSURANCE - FINANCIAL GUARANTEE--1.9% 2,500 Enhance Financial Services Group Inc. ......... 29,375 1,450 PMI Group, Inc. (The) ......................... 52,653 3,100 Radian Group Inc. ............................. 107,531 ---------- 189,559 ---------- INSURANCE - HEALTH & LIFE--2.3% 2,000 AmerUs Life Holdings, Inc., Class A** ......... 40,625 1,048 Delphi Financial Group, Inc., Class A* ........ 27,641 800 Hartford Life, Inc., Class A .................. 28,300 2,500 Liberty Financial Companies, Inc. ............. 48,281 3,600 Nationwide Financial Services, Inc., Class A ..................................... 83,025 ---------- 227,872 ---------- INSURANCE - PROPERTY & CASUALTY--1.7% 4,400 CNA Surety Corp. .............................. 50,050 900 Medical Assurance, Inc. ....................... 17,662 6,700 MIIX Group, Inc. (The) ........................ 77,888 700 Travelers Property Casualty Corp., Class A ..................................... 22,138 ---------- 167,738 ---------- INSURANCE - TITLE INSURANCE--0.3% 600 Chicago Title Corp. ........................... 27,900 ---------- LEISURE & ENTERTAINMENT--0.7% 1,000 Anchor Gaming* ................................ 41,625 1,500 Brunswick Corp. ............................... 26,531 ---------- 68,156 ---------- The accompanying notes are an integral part of the financial statements. 26 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- MACHINERY--3.8% 800 Graco Inc.** .................................. $ 24,150 1,200 Imation Corp.* ................................ 37,125 1,000 Kulicke & Soffa Industries, Inc.* ............. 79,500 2,100 Milacron Inc.** ............................... 29,138 2,700 Tecumseh Products Co., Class A ................ 116,438 3,800 United Dominion Industries Ltd. ............... 70,063 300 Zebra Technologies Corp., Class A* ............ 19,969 ---------- 376,383 ---------- MANUFACTURING--2.5% 2,300 MascoTech, Inc. ............................... 32,200 2,200 National Service Industries, Inc. ............. 45,100 2,300 Pentair, Inc. ................................. 79,063 3,900 Trinity Industries, Inc. ...................... 86,288 ---------- 242,651 ---------- MEDICAL INSTRUMENTS & SUPPLIES--1.7% 1,200 Beckman Coulter, Inc. ......................... 57,750 2,100 Invacare Corp. ................................ 51,188 2,500 Mallinckrodt Inc. ............................. 61,563 ---------- 170,501 ---------- METAL FABRICATING--0.8% 7,200 Intermet Corp. ................................ 81,000 ---------- NATURAL GAS - DISTRIBUTION--4.5% 5,100 Energen Corp. ................................. 82,875 900 MCN Energy Group Inc. ......................... 21,656 1,200 Midcoast Energy Resources, Inc. ............... 18,900 3,100 NICOR Inc. .................................... 94,163 400 NUI Corp.** ................................... 9,500 4,700 ONEOK, Inc. ................................... 106,631 900 SEMCO Energy, Inc.** .......................... 10,800 5,100 UGI Corp. ..................................... 95,625 ---------- 440,150 ---------- OFFICE & BUSINESS EQUIPMENT--0.4% 1,300 United Stationers Inc.* ....................... 34,938 ---------- OIL & GAS FIELD EXPLORATION--3.7% 10,400 Cross Timbers Oil Co. ......................... 89,700 700 Helmerich & Payne, Inc. ....................... 18,638 2,000 HS Resources, Inc.* ........................... 33,000 500 Noble Affiliates, Inc. ........................ 11,250 3,700 Ocean Energy Inc.* ............................ 39,544 500 Offshore Logistics, Inc. ...................... 4,969 7,700 Pioneer Natural Resources Co.* ................ 64,006 - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- OIL & GAS FIELD EXPLORATION--(CONTINUED) 4,400 Swift Energy Co.* ............................. $ 51,975 1,700 Tidewater Inc. ................................ 48,131 ---------- 361,213 ---------- OPTICAL INSTRUMENTS & LENSES--0.3% 1,700 Robotic Vision Systems, Inc.* ................. 29,750 ---------- PAPER & ALLIED PRODUCTS--1.1% 1,200 Buckeye Technologies Inc.* .................... 19,125 1,500 Louisiana-Pacific Corp. ....................... 17,719 5,600 Schweitzer-Mauduit International, Inc. ........ 76,300 ---------- 113,144 ---------- PLASTICS--1.1% 6,500 Tupperware Corp. .............................. 111,719 ---------- RECYCLING--0.6% 5,500 IMCO Recycling Inc. ........................... 54,656 ---------- RESIDENTIAL CONSTRUCTION--4.6% 9,300 D.R. Horton, Inc. ............................. 104,625 2,000 Kaufman and Broad Home Corp. .................. 38,250 4,800 Pulte Corp. ................................... 80,700 5,100 Ryland Group, Inc. (The) ...................... 90,525 10,700 Standard Pacific Corp. ........................ 113,688 1,300 Toll Brothers, Inc.* .......................... 21,613 ---------- 449,401 ---------- RETAIL - DEPARTMENT STORES--0.2% 1,600 Ames Department Stores, Inc.*/** .............. 22,600 ---------- RETAIL - JEWELRY STORES--0.4% 2,100 Claire's Stores, Inc. ......................... 36,619 ---------- RETAIL - SHOE STORES--0.6% 5,300 Brown Shoe Company, Inc. ...................... 55,650 ---------- RETAIL - SPECIALTY--0.4% 2,500 Pier 1 Imports, Inc.** ........................ 21,875 1,100 ShopKo Stores, Inc.* .......................... 18,288 ---------- 40,163 ---------- RETAIL - SPECIALTY APPAREL--1.2% 6,400 Cato Corp. (The), Class A ..................... 64,000 2,600 Ross Stores, Inc. ............................. 37,700 600 Wilsons, The Leather Experts, Inc.* ........... 15,300 ---------- 117,000 ---------- The accompanying notes are an integral part of the financial statements. 28 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- SAVINGS & LOAN ASSOCIATIONS--2.5% 3,800 Astoria Financial Corp. ....................... $ 90,488 1,900 Downey Financial Corp. ........................ 37,406 2,500 Flagstar Bancorp, Inc.** ...................... 32,188 1,800 Golden State Bancorp Inc.*/** ................. 23,175 5,400 Sovereign Bancorp, Inc. ....................... 39,150 1,200 Webster Financial Corp. ....................... 25,350 ---------- 247,757 ---------- SEMICONDUCTORS--0.8% 1,500 Integrated Silicon Solution, Inc.* ............ 41,719 1,600 Silicon Valley Group, Inc.* ................... 40,500 ---------- 82,219 ---------- STEEL--0.9% 300 Carpenter Technology Corp. .................... 6,675 11,500 National Steel Corp., Class B ................. 80,500 ---------- 87,175 ---------- TELECOMMUNICATIONS EQUIPMENT--1.1% 2,100 Centigram Communications Corp.* ............... 43,313 800 Plantronics, Inc.*/** ......................... 63,550 ---------- 106,863 ---------- TOBACCO--0.7% 2,300 R.J. Reynolds Tobacco Holdings, Inc. .......... 41,400 1,500 Universal Corp. ............................... 24,563 ---------- 65,963 ---------- TOOLS--0.2% 800 Snap-On, Inc. ................................. 17,450 ---------- TRANSPORTATION--1.3% 5,000 Arkansas Best Corp.*/** ....................... 47,188 1,300 GATX Corp. .................................... 40,463 300 USFreightways Corp. ........................... 9,975 1,700 Yellow Corp.* ................................. 27,200 ---------- 124,826 ---------- TRUCKS - RENTAL SERVICES--0.4% 2,100 Rollins Truck Leasing Corp. ................... 17,588 1,000 Ryder System, Inc. ............................ 18,625 ---------- 36,213 ---------- UTILITIES--2.4% 8,300 Public Service Co. of New Mexico .............. 127,613 5,600 RGS Energy Group Inc.** ....................... 110,250 ---------- 237,863 ---------- - ----------------------------------------------------------------------- VALUE SHARES (NOTE 1) - ----------------------------------------------------------------------- WHOLESALE - DISTRIBUTION--0.4% 2,700 Bell Microproducts, Inc.* ..................... $ 36,619 ---------- WHOLESALE - DRUG DISTRIBUTION--0.3% 2,100 AmeriSource Health Corp., Class A* ............ 30,581 ---------- WHOLESALE - MEDICAL, DENTAL & HOSPITAL EQUIPMENT & SERVICES--0.7% 5,900 Owens & Minor, Inc. Holding Co.** ............. 64,900 ---------- Total Common Stocks (Cost $10,435,156) .......................... 9,295,264 ---------- PRINCIPAL AMOUNT (000'S) - -------------- REPURCHASE AGREEMENT--4.5% $440 Bear, Stearns & Co. Inc. (Agreement dated 02/29/00 to be repurchased at $439,633) 5.76%, 03/01/00 (Cost $439,563) (Note 6) .................... 439,563 ---------- Total Investments -- 99.0% (Cost $10,874,719) .......................... 9,734,827 ---------- Other Assets in Excess of Liabilities -- 1.0% ...................... 98,328 ---------- Net Assets -- 100.0% .......................... $9,833,155 ========== - --------- *Non-income producing. **Security or a portion thereof is out on loan. The accompanying notes are an integral part of the financial statements. 28 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 2000 (UNAUDITED)
MICRO CAP GROWTH MID CAP LARGER CAP VALUE SMALL CAP VALUE FUND FUND FUND* FUND FUND ------------ ----------- ----------- ---------------- -------------- ASSETS Investments, at value (Cost - $103,683,853, $55,110,713, $41,368,546, $3,974,668, $10,874,719, respectively) ...................... $134,026,672 $80,037,030 $41,422,215 $ 3,415,593 $ 9,734,827 Cash collateral received for securities loaned (Note 5) ........................................ 3,003,532 1,194,846 175,589 2,364 14,184 Receivable for investments sold .................... 3,958,630 2,026,270 862,443 540,010 241,721 Dividends and interest receivable .................. 40,811 18,862 48,666 8,613 21,793 Receivable for Fund shares sold .................... 42,700 54,353 1,290 -- -- Receivable from investment adviser ................. -- -- -- 4,887 284 Prepaid expenses ................................... 21,084 14,294 42,597 -- -- ------------ ----------- ----------- ----------- ----------- Total assets .................................... 141,093,429 83,345,655 42,552,800 3,971,467 10,012,809 ------------ ----------- ----------- ----------- ----------- LIABILITIES Payable upon return of securities loaned (Note 5) ........................................ 3,003,532 1,194,846 175,589 2,364 14,184 Payable for investments purchased .................. 3,199,492 2,145,762 923,471 40,901 159,769 Payable for fund shares redeemed ................... 36,264 166,721 187,130 49,450 -- Accrued expenses and other liabilities ............. 51,477 37,132 4,637 135,116 5,701 ------------ ----------- ----------- ----------- ----------- Total liabilities ............................... 6,290,765 3,544,461 1,290,827 227,831 179,654 ------------ ----------- ----------- ----------- ----------- NET ASSETS Capital stock, $0.001 par value .................... 6,758 3,430 2,514 361 994 Additional paid-in capital ......................... 89,077,886 43,567,736 38,030,496 5,661,132 11,664,322 Undistributed net investment income/(loss) ......... (261,111) (205,723) 91,272 49,569 74,678 Accumulated undistributed net realized gain/(loss) from investments and futures transactions, if any .......................................... 15,636,312 11,509,434 3,084,022 (1,408,351) (766,947) Net unrealized appreciation/(depreciation) on investments and futures transactions, if any .... 30,342,819 24,926,317 53,669 (559,075) (1,139,892) ------------ ----------- ----------- ----------- ----------- Net assets applicable to shares outstanding ........ $134,802,664 $79,801,194 $41,261,973 $ 3,743,636 $ 9,833,155 ============ =========== =========== =========== =========== Shares outstanding .................................... 6,758,092 3,430,297 2,513,988 360,610 994,179 ------------ ----------- ----------- ----------- ----------- Net asset value, offering and redemption price per share .................................... $19.95 $23.26 $16.41 $10.38 $9.89 ====== ====== ====== ====== ===== - ----------- * Formerly known as Growth & Value Fund.
The accompanying notes are an integral part of the financial statements. 29 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 (UNAUDITED)
MICRO CAP GROWTH MID CAP LARGER CAP VALUE SMALL CAP VALUE FUND FUND FUND* FUND FUND ------------ ----------- ----------- ---------------- -------------- INVESTMENT INCOME Dividends** ........................................ $ 95,630 $ 84,242 $ 276,278 $ 77,235 $ 113,894 Interest ........................................... 110,838 29,256 37,465 3,112 12,273 Securities lending (Note 5) ........................ 29,014 15,289 6,110 321 1,421 ----------- ----------- ---------- ----------- ----------- 235,482 128,787 319,853 80,668 127,588 ----------- ----------- ---------- ----------- ----------- EXPENSES Advisory fees ...................................... 372,445 250,587 171,377 24,136 39,695 Co-Administration fees ............................. 86,935 58,587 48,925 39,109 40,146 Administrative service fees ........................ 74,489 50,177 34,275 4,827 7,939 Transfer agent fees and expenses ................... 31,252 26,988 46,424 20,816 19,893 Printing ........................................... 4,320 2,347 38,762 336 481 Custodian fees and expenses ........................ 14,898 10,035 6,855 968 1,588 Federal and state registration fees ................ 6,955 5,212 3,374 3,519 9,340 Audit and legal fees ............................... 11,536 6,915 4,893 421 2,238 Other .............................................. 3,536 3,615 2,863 504 1,209 ----------- ----------- ---------- ----------- ----------- Total expenses before waivers and reimbursements ............................... 606,366 414,463 357,748 94,636 122,529 Less: waivers and reimbursements ................ (109,773) (79,953) (129,245) (62,454) (69,602) ----------- ----------- ---------- ----------- ----------- Total expenses after waivers and reimbursements ............................... 496,593 334,510 228,503 32,182 52,927 ----------- ----------- ---------- ----------- ----------- Net Investment Income/(loss) ....................... (261,111) (205,723) 91,350 48,486 74,661 ----------- ----------- ---------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS AND FUTURES TRANSACTIONS: Net realized gain/(loss) from: Investments ..................................... 16,105,800 12,198,750 4,143,112 (1,111,042) (658,251) Futures transactions ............................ (67,142) -- -- -- -- Net change in unrealized appreciation/ (depreciation) on investments ................... 27,099,355 20,771,161 342,392 (217,386) (873,192) ----------- ----------- ---------- ----------- ----------- Net realized and unrealized gain/(loss) on investments and futures transactions, if any .... 43,138,013 32,969,911 4,485,504 (1,328,428) (1,531,443) ----------- ----------- ---------- ----------- ----------- Net increase/(decrease) in net assets resulting from operations .................................... $42,876,902 $32,764,188 $4,576,854 $(1,279,942) $(1,456,782) =========== =========== ========== =========== =========== - ----------- * Formerly known as Growth & Value Fund. ** Net of foreign withholding taxes of $1,202, $102, and $310, for the Micro Cap Fund, Growth Fund, and Small Cap Value Fund, respectively.
The accompanying notes are an integral part of the financial statements. 30 [THIS PAGE INTENTIONALLY LEFT BLANK.] N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] STATEMENT OF CHANGES IN NET ASSETS
MICRO CAP GROWTH FUND FUND ----------------------------------- ----------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED FISCAL SIX MONTHS ENDED FISCAL FEBRUARY 29, 2000 YEAR ENDED FEBRUARY 29, 2000 YEAR ENDED (UNAUDITED) AUGUST 31, 1999 (UNAUDITED) AUGUST 31, 1999 ----------------- --------------- ----------------- --------------- INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income/(loss) ....................... $ (261,111) $ (463,635) $ (205,723) $ (341,042) Net realized gain/(loss) from investments and futures transactions, if any ................ 16,038,658 18,229,148 12,198,750 3,454,997 Net change in unrealized appreciation/ (depreciation) on investments and futures transactions, if any .................... 27,099,355 26,593,111 20,771,161 28,829,220 ------------ ------------ ------------ ------------ Net increase/(decrease) in net assets resulting from operations ....................... 42,876,902 44,358,624 32,764,188 31,943,175 ------------ ------------ ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income .............................. -- -- -- -- Net realized capital gains ......................... (18,272,209) (7,942,123) (1,484,633) (39,086) ------------ ------------ ------------ ------------ Total dividends and distributions to shareholders .. (18,272,209) (7,942,123) (1,484,633) (39,086) ------------ ------------ ------------ ------------ INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ........... 33,849,146 (59,334,109) (13,854,184) (47,367,810) ------------ ------------ ------------ ------------ Total increase/(decrease) in net assets ............ 58,453,839 (22,917,608) 17,425,371 (15,463,721) NET ASSETS Beginning of period ................................ 76,348,825 99,266,433 62,375,823 77,839,544 ------------ ------------ ------------ ------------ End of period+ ..................................... $134,802,664 $ 76,348,825 $ 79,801,194 $ 62,375,823 ============ ============ ============ ============
MID CAP LARGER CAP VALUE FUND* FUND ----------------------------------- ----------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED FISCAL SIX MONTHS ENDED FISCAL FEBRUARY 29, 2000 YEAR ENDED FEBRUARY 29, 2000 YEAR ENDED (UNAUDITED) AUGUST 31, 1999 (UNAUDITED) AUGUST 31, 1999 ----------------- --------------- ----------------- --------------- INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income/(loss) ....................... $ 91,350 $ 274,601 $ 48,486 $ 204,443 Net realized gain/(loss) from investments and futures transactions, if any ................ 4,143,112 4,760,317 (1,111,042) (167,333) Net change in unrealized appreciation/ (depreciation) on investments and futures transactions, if any .................... 342,392 29,753,292 (217,386) 5,969,183 ----------- ------------ ----------- ------------ Net increase/(decrease) in net assets resulting from operations ....................... 4,576,854 34,788,210 (1,279,942) 6,006,293 ----------- ------------ ----------- ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income .............................. (82,617) (497,210) (87,005) (253,730) Net realized capital gains ......................... (5,452,700) (10,970,699) -- (542,701) ----------- ------------ ----------- ------------ Total dividends and distributions to shareholders .. (5,535,317) (11,467,909) (87,005) (796,431) ----------- ------------ ----------- ------------ INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ........... (6,935,345) (84,340,716) (3,145,408) (22,210,422) ----------- ------------ ----------- ------------ Total increase/(decrease) in net assets ............ (7,893,808) (61,020,415) (4,512,355) (17,000,560) NET ASSETS Beginning of period ................................ 49,155,781 110,176,196 8,255,991 25,256,551 ----------- ------------ ----------- ------------ End of period+ ..................................... $41,261,973 $ 49,155,781 $ 3,743,636 $ 8,255,991 =========== ============ =========== ============
SMALL CAP VALUE FUND ---------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS ENDED NOVEMBER 30, 1998** FEBRUARY 29, 2000 THROUGH (UNAUDITED) AUGUST 31, 1999 ------------------ ------------------- INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income/(loss) ....................... $ 74,661 $ 87,010 Net realized gain/(loss) from investments and futures transactions, if any ................ (658,251) 1,061,132 Net change in unrealized appreciation/ (depreciation) on investments and futures transactions, if any .................... (873,192) (266,700) ----------- ----------- Net increase/(decrease) in net assets resulting from operations ....................... (1,456,782) 881,442 ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income .............................. (86,993) -- Net realized capital gains ......................... (1,169,828) -- ----------- ----------- Total dividends and distributions to shareholders .. (1,256,821) -- ----------- ----------- INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ........... 1,048,468 10,616,848 ----------- ----------- Total increase/(decrease) in net assets ............ (1,665,135) 11,498,290 NET ASSETS Beginning of period ................................ 11,498,290 -- ----------- ----------- End of period+ ..................................... $ 9,833,155 $11,498,290 =========== =========== - ----------- * Formerly known as Growth & Value Fund. ** Commencement of operations. + Includes undistributed net investment income of $91,272, $49,569, and $74,678 for the Mid Cap Fund, Larger Cap Value Fund and Small Cap Value Fund, respectively, for the six months ended February 29, 2000. At August 31, 1999, the Mid Cap Fund, Larger Cap Value Fund and Small Cap Value Fund had undistributed net investment income of $82,539, $88,088 and $87,010, respectively.
The accompanying notes are an integral part of the financial statements. 32 & 33 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] 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 periods. This information has been derived from information provided in the financial statements. - --------------------------------------------------------------------------------
MICRO CAP FUND ---------------------------------------------------------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS ENDED FOR THE FISCAL FOR THE FISCAL FOR THE FISCAL JUNE 3, 1996* FEBRUARY 29, 2000 YEAR ENDED YEAR ENDED YEAR ENDED THROUGH (UNAUDITED) AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 ----------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ....... $ 18.03 $ 12.52 $ 18.47 $ 11.67 $ 12.00 -------- -------- ------- -------- ------- Net investment income/(loss) ............... (0.04) (0.18) (0.07) (0.01) 0.01 Net realized and unrealized gain/(loss) on investments and futures transactions, if any .................................. 6.29 6.72 (3.23) 6.82 (0.34) -------- -------- ------- -------- ------- Net increase/(decrease) in net assets resulting from operations ............... 6.25 6.54 (3.30) 6.81 (0.33) -------- -------- ------- -------- ------- Dividends and distributions to shareholders from: Net investment income ...................... -- -- -- (0.01) -- Net realized capital gains ................. (4.33) (1.03) (2.65) -- -- -------- -------- ------- -------- ------- Total dividends and distributions to shareholders ............................... (4.33) (1.03) (2.65) (0.01) -- -------- -------- ------- -------- ------- Net asset value, end of period ............. $ 19.95 $ 18.03 $ 12.52 $ 18.47 $ 11.67 ======== ======== ======= ======== ======= Total investment return(1) ................. 46.77% 56.09% (20.74)% 58.41% (2.75)% ======== ======== ======= ======== ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .. $134,803 $ 76,349 $99,266 $142,119 $14,100 Ratio of expenses to average net assets(2) . 1.00%(3) 1.00% 1.00% 1.00% 1.00%(3) Ratio of expenses to average net assets without waivers and expense reimbursements .......................... 1.22%(3) 1.26% 1.23% 1.45% 3.45%(3) Ratio of net investment income/(loss) to average net assets(2) ................... (0.53)%(3) (0.46)% (0.41)% (0.06)% 0.73%(3) Portfolio turnover rate .................... 142.99% 316.02% 408.70% 233.49% 42.92%
GROWTH FUND --------------------------------------------------------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS ENDED FOR THE FISCAL FOR THE FISCAL FOR THE FISCAL JUNE 3, 1996* FEBRUARY 29, 2000 YEAR ENDED YEAR ENDED YEAR ENDED THROUGH (UNAUDITED) AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 ----------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ....... $ 14.89 $ 9.75 $ 16.29 $ 11.84 $ 12.00 ------- ------- ------- -------- ------- Net investment income/(loss) ............... (0.06) (0.18) (0.07) (0.04) 0.01 Net realized and unrealized gain/(loss) on investments and futures transactions, if any .................................. 8.80 5.33 (3.98) 4.50 (0.17) ------- ------- ------- -------- ------- Net increase/(decrease) in net assets resulting from operations ............... 8.74 5.15 (4.05) 4.46 (0.16) ------- ------- ------- -------- ------- Dividends and distributions to shareholders from: Net investment income ...................... -- -- -- (0.01) -- Net realized capital gains ................. (0.37) (0.01) (2.49) -- -- ------- ------- ------- -------- ------- Total dividends and distributions to shareholders ............................... (0.37) (0.01) (2.49) (0.01) -- ------- ------- ------- -------- ------- Net asset value, end of period ............. $ 23.26 $ 14.89 $ 9.75 $ 16.29 $ 11.84 ======= ======= ======= ======== ======= Total investment return(1) ................. 60.15% 52.80% (29.03)% 37.69% (1.33)% ======= ======= ======= ======== ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .. $79,801 $62,376 $77,840 $117,724 $26,756 Ratio of expenses to average net assets(2) . 1.00%(3) 1.00% 1.00% 1.00% 1.00%(3) Ratio of expenses to average net assets without waivers and expense reimbursements .......................... 1.24%(3) 1.30% 1.24% 1.40% 2.62%(3) Ratio of net investment income/(loss) to average net assets(2) ................... (0.61)%(3) (0.45)% (0.50)% (0.38)% 0.71%(3) Portfolio turnover rate .................... 100.87% 309.60% 338.40% 266.25% 19.21% - ----------- * Commencement of operations. (1) 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 reinvestments of dividends and distributions, if any. Total investment returns are not annualized. (2) Reflects waivers and reimbursements. (3) Annualized.
The accompanying notes are an integral part of the financial statements. 34 & 35 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] 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 SIX MONTHS ENDED FOR THE FISCAL FOR THE FISCAL FOR THE FISCAL FEBRUARY 29, 2000 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 ----------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .............. $ 16.89 $ 13.30 $ 17.16 $ 11.56 ------- ------- -------- ------- Net investment income ............................. 0.04 0.05 0.05 0.08 Net realized and unrealized gain/(loss) on investments and futures transactions, if any ... 1.48 4.97 (1.24) 5.58 ------- ------- -------- ------- Net increase/(decrease) in net assets resulting from operations ................................ 1.52 5.02 (1.19) 5.66 ------- ------- -------- ------- Dividends and distributions to shareholders from: Net investment income ............................. (0.03) (0.06) (0.06) (0.06) Net realized capital gains ........................ (1.97) (1.37) (2.61) -- ------- ------- -------- ------- Total dividends and distributions to shareholders . (2.00) (1.43) (2.67) (0.06) ------- ------- -------- ------- Net asset value, end of period .................... $ 16.41 $ 16.89 $ 13.30 $ 17.16 ======= ======= ======== ======= Total investment return(1) ........................ 10.66% 41.61% (8.97)% 49.11% ======= ======= ======== ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ......... $41,262 $49,156 $110,176 $52,491 Ratio of expenses to average net assets(2) ........ 1.00%(3) 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and expense reimbursements ............. 1.57%(3) 1.33% 1.26% 1.81% Ratio of net investment income/(loss) to average net assets(2) .................................. 0.40%(3) 0.31% 0.36% 0.79% Portfolio turnover rate ........................... 166.26% 384.71% 341.73% 263.83%
MID CAP FUND* LARGER CAP VALUE FUND --------------- -------------------------------------------------------- FOR THE PERIOD FOR THE FOR THE PERIOD JUNE 3, 1996** SIX MONTHS ENDED FOR THE FISCAL DECEMBER 9, 1997** THROUGH FEBRUARY 29, 2000 YEAR ENDED THROUGH AUGUST 31, 1996 (UNAUDITED) AUGUST 31, 1999 AUGUST 31, 1998 --------------- ----------------- --------------- ------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .............. $12.00 $13.27 $ 10.84 $ 12.00 ------ ------ ------- ------- Net investment income ............................. 0.03 0.14 0.19 0.06 Net realized and unrealized gain/(loss) on investments and futures transactions, if any ... (0.47) (2.89) 2.58 (1.22) ------ ------ ------- ------- Net increase/(decrease) in net assets resulting from operations ................................ (0.44) (2.75) 2.77 (1.16) ------ ------ ------- ------- Dividends and distributions to shareholders from: Net investment income ............................. -- (0.14) (0.11) -- Net realized capital gains ........................ -- -- (0.23) -- ------ ------ ------- ------- Total dividends and distributions to shareholders . -- (0.14) (0.34) -- ------ ------ ------- ------- Net asset value, end of period .................... $11.56 $10.38 $ 13.27 $ 10.84 ====== ====== ======= ======= Total investment return(1) ........................ (3.67)% (20.86)% 26.01% (9.67)% ====== ====== ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ......... $3,813 $3,744 $ 8,256 $25,257 Ratio of expenses to average net assets(2) ........ 1.00%(3) 1.00%(3) 1.00% 1.00%(3) Ratio of expenses to average net assets without waivers and expense reimbursements ............. 8.98%(3) 2.94%(3) 1.80% 2.20%(3) Ratio of net investment income/(loss) to average net assets(2) .................................. 1.89%(3) 1.51%(3) 1.02% 1.26%(3) Portfolio turnover rate ........................... 5.25% 115.57% 304.89% 166.81%
SMALL CAP VALUE FUND --------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS ENDED NOVEMBER 30, 1998** FEBRUARY 29, 2000 THROUGH (UNAUDITED) AUGUST 31, 1999 ----------------- ------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .............. $12.86 $ 12.00 ------ ------- Net investment income ............................. 0.08 0.10 Net realized and unrealized gain/(loss) on investments and futures transactions, if any ... (1.63) 0.76 ------ ------- Net increase/(decrease) in net assets resulting from operations ................................ (1.55) 0.86 ------ ------- Dividends and distributions to shareholders from: Net investment income ............................. (0.10) -- Net realized capital gains ........................ (1.32) -- ------ ------- Total dividends and distributions to shareholders . (1.42) -- ------ ------- Net asset value, end of period .................... $ 9.89 $ 12.86 ====== ======= Total investment return(1) ........................ (12.72)% 7.17% ====== ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ......... $9,833 $11,498 Ratio of expenses to average net assets(2) ........ 1.00%(3) 1.00%(3) Ratio of expenses to average net assets without waivers and expense reimbursements ............. 2.31%(3) 2.59%(3) Ratio of net investment income/(loss) to average net assets(2) .................................. 1.41%(3) 1.15%(3) Portfolio turnover rate ........................... 123.10% 212.55% - ----------- * Formerly known as Growth & Value Fund. ** Commencement of operations. (1) 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 reinvestments of dividends and distributions, if any. Total investment returns are not annualized. (2) Reflects waivers and reimbursements. (3) Annualized.
The accompanying notes are an integral part of the financial statements. 36 & 37 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 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 seventeen investment portfolios, including the N/I NUMERIC INVESTORS FAMILY OF FUNDS ("n/i numeric investors Family") which consists of five diversified portfolios: N/I NUMERIC INVESTORS Micro Cap Fund ("Micro Cap Fund"), N/I NUMERIC INVESTORS Growth Fund ("Growth Fund"), N/I NUMERIC INVESTORS Mid Cap Fund ("Mid Cap Fund") (formerly known as "N/I NUMERIC INVESTORS Growth & Value Fund"), N/I NUMERIC INVESTORS Larger Cap Value Fund ("Larger Cap Value 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 20.03 billion are currently classified into ninety-nine classes. Each class represents an interest in one of seventeen investment portfolios of RBB. The classes have been grouped into fifteen separate "families", ten of which have begun investment operations. 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, as 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 the 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. 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 each Fund. 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.(REGISTRATION MARK) (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 maintain additional securities, to ensure that the value 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. 38 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- Transactions are accounted for on the 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 recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Expenses not directly attributable to a specific Fund are allocated based on relative net assets of each Fund. FINANCIAL FUTURES TRANSACTIONS -- Each Fund may invest in financial futures contracts for hedging purposes, including conversion of cash to equity. When entering into a futures contract, each Fund makes a deposit of an initial margin with its custodian in a segregated account in the name of the futures broker. Subsequent payments to or from the broker, called variation margin, are made on a daily basis as the price of the underlying security or index fluctuates, making the long and short positions in the futures contracts more or less valuable. When the contracts are closed, a gain or loss is realized equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund's basis in the contracts. The risks related to the use of futures contracts include: (i) the correlation between movements in the market price of a Fund's investments (held or intended for purchase) being hedged and in the price of the futures contract may be imperfect; (ii) possible lack of a liquid secondary market for closing out futures positions; (iii) the need for additional portfolio management skills and techniques; and (iv) losses due to unanticipated market movements. Successful use of futures by the Funds is subject to Numeric's ability to correctly predict movements in the direction of the market. The risk of loss in trading futures contracts in some strategies can be substantial, due both to the low margin deposits required, and the extremely high degree of leverage involved in futures pricing. As a result, a relatively small price movement in a futures contract may result in immediate and substantial loss or gain to the investor. Thus, a purchase or sale of a futures contract may result in losses or gains in excess of the amount invested in the contract. None of the Funds had open futures contracts at February 29, 2000. USE OF ESTIMATES -- The preparation of financial statements in conformity with generally accepted accounting principals 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 reporting period. Actual results could differ from those estimates. DIVIDENDS AND DISTRIBUTIONS -- Dividends from net investment income and distributions from net realized capital gains, if any, will be declared 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 generally accepted accounting principles. 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. 39 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) U.S. FEDERAL TAX STATUS -- No provision is made for U.S. federal income taxes as it is each Fund's intention 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 substantially all excise taxes. For U.S. federal income tax purposes, realized capital losses incurred after October 31, 1998, within the prior fiscal year ("post-October losses"), are deemed to arise on the first day of the current fiscal year. Growth Fund and Mid Cap Fund, incurred and elected to defer such losses of $401,297 and $435,208, respectively. At August 31, 1999 the Larger Cap Value Fund had a capital loss carryforward of $14,809 which expires in 2007. 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Numeric serves as each Fund's investment adviser. For its advisory services, Numeric is entitled to receive 0.75% of each Fund's average daily net assets, accrued daily and paid monthly. The Adviser has voluntarily agreed to limit each Fund's total operating expenses until December 31, 2000 to the extent that such expenses exceeded 1.00% of each Fund's average daily net assets. As necessary, this limitation is effected in waivers of advisory fees and reimbursements of expenses exceeding the advisory fee. For the six months ended February 29, 2000, investment advisory fees, waivers and reimbursements of expenses were as follows:
GROSS NET EXPENSE FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT - ---- ------------- ---------- ------------- ------------- Micro Cap Fund .................................... $372,445 $ (40,250) $332,195 -- Growth Fund ....................................... 250,587 (33,723) 216,864 -- Mid Cap Fund* ..................................... 171,377 (101,825) 69,552 -- Larger Cap Value Fund ............................. 24,136 (24,136) -- $15,956 Small Cap Value Fund .............................. 39,695 (35,501) 4,194 -- - ----------- * Formerly known as Growth & Value Fund.
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") an indirect wholly-owned subsidiary of The PNC Financial Services Group, Inc., 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. 40 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) For the six months ended February 29, 2000, PFPC, at its discretion, voluntarily agreed to waive a portion of its co-administration fees for the Micro Cap, Growth, Larger Cap Value and Small Cap Value Funds. During such period, PFPC's co-administration fees and related waivers were as follows:
PFPC GROSS PFPC PFPC NET FUND CO-ADMINISTRATION FEES WAIVERS CO-ADMINISTRATION FEES - ---- ---------------------- -------- ---------------------- Micro Cap Fund ............ $62,105 $ (4,966) $57,139 Growth Fund ............... 41,862 (2,744) 39,118 Mid Cap Fund* ............. 37,500 -- 37,500 Larger Cap Value Fund ..... 37,500 (12,500) 25,000 Small Cap Value Fund ...... 37,500 (18,750) 18,750
In addition, PFPC serves as each Fund's transfer and dividend disbursing agent. PFPC, at its discretion, voluntarily agreed to waive a portion of its transfer agency fees for Larger Cap Value Fund and Small Cap Value Fund. For the six months ended February 29, 2000, transfer agency fees and waivers were as follows: GROSS NET TRANSFER AGENCY TRANSFER AGENCY FUND FEES WAIVERS FEES - ---- --------------- -------- --------------- Micro Cap Fund .............. $31,252 -- $31,252 Growth Fund ................. 26,988 -- 26,988 Mid Cap Fund* ............... 46,424 -- 46,424 Larger Cap Value Fund ....... 20,816 $(6,000) 14,816 Small Cap Value Fund ........ 19,893 (9,000) 10,893 Provident Distributors, Inc. ("PDI") provides certain administrative services to each Fund. As compensation for such administrative services, PDI is entitled to receive a monthly fee equal to an annual rate of 0.15% of each Fund's average daily net assets. PDI has, at its discretion, voluntarily agreed to waive a portion of its administrative services fees for each Fund. For the six months ended February 29, 2000, administrative services fees and waivers were as follows: GROSS ADMINISTRATIVE NET ADMINISTRATIVE FUND SERVICES FEES WAIVERS SERVICES FEES - ---- -------------- -------- ------------------ Micro Cap Fund ............. $74,489 $(64,557) $9,932 Growth Fund ................ 50,177 (43,486) 6,691 Mid Cap Fund* .............. 34,275 (27,420) 6,855 Larger Cap Value Fund ...... 4,827 (3,862) 965 Small Cap Value Fund ....... 7,939 (6,351) 1,588 - ----------- * Formerly known as Growth & Value Fund. These fees are computed daily and paid monthly. 41 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 3. INVESTMENT IN SECURITIES For U.S. federal income tax purposes, the cost of securities owned at February 29, 2000 were $104,112,503, $55,222,590, $41,623,000, $4,056,753, and $10,930,583 for Micro Cap Fund, Growth Fund, Mid Cap Fund, Larger Cap Value Fund and Small Cap Value Fund, respectively. Accordingly, the net unrealized appreciation/(depreciation) of investments were as follows: GROSS GROSS NET APPRECIATION/ FUND APPRECIATION DEPRECIATION (DEPRECIATION) - ---- ------------ ------------ ----------------- Micro Cap Fund ............ $33,946,021 $(4,031,852) $29,914,169 Growth Fund ............... 28,430,752 (3,616,312) 24,814,440 Mid Cap Fund* ............. 4,989,704 (5,190,489) (200,785) Larger Cap Value Fund ..... 40,988 (682,148) (641,160) Small Cap Value Fund ...... 434,994 (1,630,750) (1,195,756) For the six months ended February 29, 2000, aggregate purchases and sales of investment securities (excluding short-term investments) were as follows: FUND PURCHASES SALES - ---- ------------ ------------ Micro Cap Fund ............................. $153,172,289 $138,909,857 Growth Fund ................................ 66,446,208 82,746,376 Mid Cap Fund* .............................. 73,821,455 85,904,879 Larger Cap Value Fund ...................... 7,215,305 10,566,612 Small Cap Value Fund ....................... 12,550,446 12,726,001 - ----------- * Formerly known as Growth & Value Fund. 42 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 4. CAPITAL SHARE TRANSACTIONS As of February 29, 2000 each Fund has 50,000,000 shares of $0.001 par value common stock authorized. Transactions in capital shares for the respective periods were as follows:
MICRO CAP FUND ------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 29, 2000 FISCAL YEAR ENDED (UNAUDITED) AUGUST 31, 1999 ----------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT --------- ------------ ---------- ------------ Sales ................................ 2,323,402 $ 34,458,481 381,712 $ 6,008,613 Repurchases .......................... 1,145,109) (18,453,046) (4,714,604) (73,124,102) Reinvestments ........................ 1,344,665 17,843,711 636,739 7,781,380 --------- ------------ ---------- ------------ Net increase/(decrease) .............. 2,522,958 $ 33,849,146 (3,696,153) $(59,334,109) ========= ============ ========== ============
GROWTH FUND --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 29, 2000 FISCAL YEAR ENDED (UNAUDITED) AUGUST 31, 1999 ------------------------ -------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------ Sales ................................ 594,887 $ 9,944,415 779,158 $ 9,139,659 Repurchases .......................... (1,456,333) (25,268,866) (4,573,587) (56,544,582) Reinvestments ........................ 101,679 1,470,267 3,862 37,113 ---------- ------------ ---------- ------------ Net decrease ......................... (759,767) $(13,854,184) (3,790,567) $(47,367,810) ========== ============ ========== ============
MID CAP FUND* -------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 29, 2000 FISCAL YEAR ENDED (UNAUDITED) AUGUST 31, 1999 ------------------------ -------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------- Sales ................................ 544,259 $ 8,652,664 927,772 $ 13,811,036 Repurchases .......................... (1,314,843) (20,958,378) (7,201,736) (109,304,768) Reinvestments ........................ 373,721 5,370,369 897,920 11,153,016 ---------- ------------ ---------- ------------- Net decrease ......................... (396,863) $ (6,935,345) (5,376,044) $ (84,340,716) ========== ============ ========== ============= - ----------- * Formerly known as Growth & Value Fund.
43 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
LARGER CAP VALUE FUND ------------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 29, 2000 FISCAL YEAR ENDED (UNAUDITED) AUGUST 31, 1999 ---------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ---------- ---------- ------------ Sales ................................ 55,572 $ 684,411 247,019 $ 3,045,277 Repurchases .......................... (324,299) (3,915,627) (2,023,238) (26,042,313) Reinvestments ........................ 6,976 85,808 68,164 786,614 -------- ----------- ---------- ------------ Net decrease ......................... (261,751) $(3,145,408) (1,708,055) $(22,210,422) ======== =========== ========== ============
SMALL CAP VALUE FUND ------------------------------------------------------ FOR THE FOR THE SIX MONTHS ENDED PERIOD NOVEMBER 30, 1998** FEBRUARY 29, 2000 THROUGH (UNAUDITED) AUGUST 31, 1999 --------------------- -------------------------- SHARES AMOUNT SHARES AMOUNT ------- ---------- --------- ----------- Sales ................................ 47,718 $ 522,850 1,000,505 $11,856,127 Repurchases .......................... (67,199) (725,831) (106,258) (1,239,279) Reinvestments ........................ 119,413 1,251,449 -- -- ------- ---------- --------- ----------- Net increase ......................... 99,932 $1,048,468 894,247 $10,616,848 ======= ========== ========= ===========
5. SECURITIES LENDING Loans of securities are required at all times to be secured by collateral at least equal to 102% 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. The cash collateral is reinvested into repurchase agreements which are in turn collateralized by various U.S. Treasury Bills. The market value of securities on loan to brokers and the related value of cash collateral and indemnification received at February 29, 2000, was as follows:
MARKET VALUE OF SECURITIES FUND ON LOAN MARKET VALUE OF COLLATERAL - ---- -------------------------- -------------------------- Micro Cap Fund ................. $17,949,979 $18,255,361 Growth Fund .................... 9,603,378 9,778,577 Mid Cap Fund* .................. 2,237,069 2,282,888 Larger Cap Value Fund .......... 190,073 197,114 Small Cap Value Fund ........... 972,085 992,012 - ----------- * Formerly known as Growth & Value Fund. ** Commencement of Operations.
44 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) 6. COLLATERAL FOR REPURCHASE AGREEMENTS Listed below is the collateral associated with the repurchase agreements with Bear, Stearns & Co. Inc., outstanding at February 29, 2000:
MICRO CAP FUND ----------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED TOTAL ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST MARKET VALUE - ------ --------- -------- ------------- ------------ -------- ------------ United States Treasury Note ................ $3,825 01/31/01 4.500% $3,763,418 $14,344 $3,777,762 ========== ======= ==========
GROWTH FUND ----------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED TOTAL ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST MARKET VALUE - ------ --------- -------- ------------- ------------ -------- ------------ United States Treasury Bill ................ $1,475 05/18/00 -- $1,456,902 -- $1,456,902 ========== ======= ==========
MID CAP FUND* ----------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED TOTAL ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST MARKET VALUE - ------ --------- -------- ------------- ------------ -------- ------------ United States Treasury Bill ................ $ 795 03/09/00 -- $ 793,982 -- $ 793,982 United States Treasury Strip ............... 7 02/15/10 -- 3,376 -- 3,376 ---------- -------- ---------- Total ................................... $ 797,358 -- $ 797,358 ========== ======== ==========
SMALL CAP VALUE FUND ----------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED TOTAL ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST MARKET VALUE - ------ --------- -------- ------------- ------------ -------- ------------ United States Treasury Bill ................ $ 440 03/09/00 -- $ 369,526 -- $ 369,526 United States Treasury Note ................ 85 01/15/09 3.875% 82,290 $ 412 82,702 ---------- ------ ---------- Total ................................... $ 451,816 $ 412 $ 452,228 ========== ====== ========== - ----------- * Formerly known as Growth & Value Fund.
45 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] MICRO CAP FUND GROWTH FUND MID CAP FUND LARGER CAP VALUE FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 7. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS On November 22, 1999* a special meeting of the shareholders of the n/i numeric investors Family of RBB was held for the purpose of approving an amendment to the investment advisory agreement between RBB and Numeric. The voting results are as follows: FUND FOR AGAINST ABSTAINED NON-VOTES - ---- --------- ------- --------- --------- Micro Cap Fund* ........... 1,404,935 339,689 663,387 1,802,166 Growth Fund ............... 2,749,586 153,900 21,499 1,166,065 Mid Cap Fund** ............ 1,172,069 228,678 34,382 1,413,420 Larger Cap Value Fund ..... 145,069 209,774 4,244 252,431 Small Cap Value Fund ...... 786,702 5,052 1,685 99,185 As a result, until January 1, 2001, Numeric is entitled to a management fee of 0.75% of the Growth, Mid Cap and Small Cap Value Funds' average daily net assets before fee waivers and expense reimbursements, if any. Thereafter, Numeric is entitled to a performance based fee for the Growth, Mid Cap and Small Cap Value Funds (advisory fees for the Micro Cap and Larger Cap Value Funds will remain unchanged). The current fee of 0.75% would only increase if performance exceeds the benchmark by 4.00% or more in a given 12-month period and would be less than the current fee if performance does not exceed the benchmark by 3.00% in a given 12-month period. The performance based fee is 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 upon each Fund's performance during the last rolling 12-month period. Each Fund's net performance would be 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 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 benchmark index for each of the Growth, Mid Cap and Small Cap Value Funds is the Russell 2500 Growth Index, S&P MidCap 400 Index and Russell 2000 Value Index, respectively. - ----------- * The November 22, 1999 special meeting of the shareholders of the Fund was adjourned until November 29, 1999 with respect to the Micro Cap Fund. As such, the results stated for the Micro Cap Fund are from the November 29, 1999 meeting. ** Formerly known as Growth & Value Fund. 46 N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] One Memorial Drive Cambridge, MA 02142 1-800-numeric [686-3742] http://www.numeric.com INVESTMENT ADVISER Numeric Investors L.P.(REGISTRATION MARK) One Memorial Drive Cambridge, MA 02142 CO-ADMINISTRATORS Bear Stearns Funds Management Inc. 575 Lexington Avenue New York, NY 10022 PFPC Inc. Bellevue Corporate Center 400 Bellevue Parkway Wilmington, DE 19809 DISTRIBUTOR Provident Distributors, Inc. 3200 Horizons Drive King of Prussia, PA 19406 CUSTODIAN Custodial Trust Company 101 Carnegie Center Princeton, NJ 05840 TRANSFER AGENT PFPC Inc. Bellevue Corporate Center 400 Bellevue Parkway Wilmington, DE 19809 INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP 2400 Eleven Penn Center Philadelphia, PA 19103 COUNSEL Drinker Biddle & Reath LLP One Logan Square 18th and Cherry Streets Philadelphia, PA 19103 The financial information included herein is taken from the records of each Fund without examination by independent auditors who do not express an opinion thereon. 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. N/I NUMERIC INVESTORS FAMILY OF FUNDS (LOGO) [GRAPHIC OMITTED] One Memorial Drive Cambridge, MA 02142 1-800-numeric [686-3742] http://www.numeric.com -----END PRIVACY-ENHANCED MESSAGE-----