N-30D 1 g6636.txt NUMERIC INVESTORS 2003 SAR (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] n/i NUMERIC INVESTORS Emerging Growth Fund n/i NUMERIC INVESTORS Growth Fund n/i NUMERIC INVESTORS Mid Cap Fund n/i NUMERIC INVESTORS Small Cap Value Fund Semi-Annual Report February 28, 2003 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND ADVISER'S REPORT March 31, 2003 Dear Shareholder: We are pleased to provide you with a semi-annual report on the performance of the n/i NUMERIC INVESTORS FAMILY OF FUNDS (the "Funds") for the period September 1, 2002 through February 28, 2003, the first half of our Funds' current fiscal year. The table below compares the returns of our four Funds with their benchmarks for several time periods all ended on February 28, 2003.
THREE YEARS FIVE YEARS AVERAGE SIX MONTHS ONE YEAR (ANNUALIZED) (ANNUALIZED) ANNUAL ENDED ENDED ENDED ENDED RETURN SINCE FEBRUARY 28, 2003 FEBRUARY 28, 2003 FEBRUARY 28, 2003 FEBRUARY 28, 2003 INCEPTION* ----------------- ----------------- ----------------- ----------------- ------------ EMERGING GROWTH FUND (4.23)% (12.39)% (9.29)% +5.00% +11.52% Russell 2000 Growth Index (5.55)% (26.79)% (27.52)% (8.91)% (4.96)% DIFFERENCE +1.32% +14.40% +18.23% +13.91% +16.48% GROWTH FUND (5.62)% (18.24)% (19.14)% (1.94)% +3.33% Russell 2500 Growth Index (4.38)% (24.58)% (25.98)% (5.39)% (1.45)% DIFFERENCE (1.24)% +6.34% +6.84% +3.45% +4.78% MID CAP FUND (8.02)% (18.25)% (6.62)% +0.55% +7.88% S&P Midcap Index (7.79)% (18.67)% (3.09)% +4.00% +9.41% Russell Mid Cap Index (5.29)% (17.61)% (7.36)% +0.37% +6.14% DIFFERENCE (S&P MIDCAP) (0.23)% +0.42% (3.53)% (3.45)% (1.53%) SMALL CAP VALUE FUND (8.87)% (9.14)% +22.98% N.A. +13.91% Russell 2000 Value Index (8.50)% (18.40)% +4.08% N.A. +4.05% DIFFERENCE (0.37)% +9.26% +18.90% N.A. +9.86% ---------- *Inception Dates: June 3, 1996 for all Funds except n/i Small Cap Value Fund, which was launched on November 30, 1998.
Examining the first column, we observe that all of the Funds' returns and the returns of their respective benchmarks were modestly negative over the most recent six months. Furthermore, this was not a period in which our quantitative investment processes were able to add value. Only one of our Funds (Emerging Growth) was able to produce a return better than the return of its benchmark. Clearly, the bear market has continued and we were unsuccessful in mitigating its damage during this period. 1 In the second column that covers the most recent year ended February 28th, we observe negative absolute returns for our Funds and an even more severe bear-market environment for the benchmarks. Returns for our Funds ranged from -9.1% to -18.3% for the full year. Twelve-month losses FOR THE BENCHMARKS were between -18.4% and -26.8%, indicating that all our Funds were successful in mitigating the rate of market decline and producing positive excess returns. The third column presents the annualized returns of our Funds versus their benchmarks over the three-year period ended February 28th. This is an especially poignant period to examine because just three years ago the market was within ten days of reaching its all-time peak during the New Economy Bubble. We scarcely need remind you of market conditions since the peak; suffice to say that the two growth benchmarks we track have been declining at the rates of 26.0% and 27.5% PER YEAR over the past three years. Only the Russell 2000 Value Index benchmark, containing small-cap value stocks, has produced a positive rate of return during this difficult period. We believe the success of this Index was due precisely to its being so out-of-favor, so boring, so "Old Economy" three years ago when investors said "it was different this time". Over this three-year period, three of our four Funds were able to generate excess returns relative to their benchmarks, thus providing a cushion to our shareholders in a difficult market environment. The ANNUALIZED rate of excess return for our Funds for this period ranged from +18.2% for the Emerging Growth and +18.9% for Small Cap Value to -3.5% for our Midcap Fund. Since inception, three of our four Funds have generated positive excess returns compared to their benchmarks. Picking up on the previous paragraphs, this report will discuss two important ingredients to successful long-term investing: 1. the value of preserving wealth in falling markets, and 2. the need to ignore (if not be contrary to) recent returns. PRESERVING WEALTH IN A FALLING MARKET Our Funds were not able to add value during the last six months because of severe underperformance during October and November. Otherwise the period was modestly successful. The lavender bars in Chart One plot the spread in returns of each of our funds versus their benchmarks, for each of the last six months. The black bar is the monthly total return of the S&P 500 Index, which we selected as the most widely followed measure of broad market activity in the United States. 2 CHART ONE MONTHLY EXCESS RETURN OF THE n/i MUTUAL FUNDS VERSUS THE TOTAL RETURN OF THE S&P 500 INDEX [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Midcap Fund Growth Fund Emerging Growth Fund Small Cap Value Fund Excess Return Excess Return Excess Return Excess Return S&P Index Total Return 2-Sep 0.21 2.38 1.63 -0.33 -10.87 2-Oct -2.33 -3.77 -3.27 -1.73 8.8 2-Nov -1.32 -5.31 -3.48 -4.87 5.88 2-Dec 1.28 2.59 3.09 3.45 -5.86 3-Jan 1.33 1.84 2.98 2.41 -2.62 3-Feb 0.32 0.16 -0.25 0.3 -1.5
Note how each monthly cluster of lavender bars tends to point uniformly upward or downward in each of the past six months, demonstrating that all of our Funds tend to add or subtract value relative to their respective benchmarks at the same time. This is because all of our mutual funds are managed using the same family of quantitative stock-selection techniques and because the market tends to reward or punish these techniques across the whole market. Also note how the black bars, indicating the return of the market in each month, point in the opposite direction to the cluster of lavender bars. When the market went up, our excess returns were negative, and vice versa. Surely this has been a helpful tendency over the past three years of a bear market when the market went down more often than up. However one would not want to have such a tendency over the very long-term, because markets (in the past at least) have tended to go up more often than down. Chart Two confirms that in the three years since the demise of the New Economy Bubble, our Funds have tended to add value in falling markets and lose value in rising markets. Each label represents a month's return on the S&P 500 Index and the AVERAGE excess return of our four Funds in combination. Note how the cloud of monthly labels has a negative slope, thus confirming that better market returns have indeed been associated with less added value from our Funds. 3 CHART TWO AVERAGE MONTHLY EXCESS RETURNS OF THE n/i MUTUAL FUNDS VERSUS THE TOTAL RETURN OF THE S&P 500 INDEX (APRIL 2000 THROUGH FEBRUARY 2003) [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC MONTHLY EXCESS RETURN MONTHLY TOTAL RETURN OF THE FUND COMPOSITE (%) OF THE S&P 500 INDEX (%) Apr-00 -3.18 3.365 May-00 -2.08 0.525 Jun-00 2.45 1.23 Jul-00 -1.56 0.4125 Aug-00 6.21 -0.32 Sep-00 -5.28 1.6925 Oct-00 -0.42 0.625 Nov-00 -7.89 -0.165 Dec-00 0.47 2.3475 Jan-03 3.57 -2.4225 Feb-03 -9.11 0.3375 Mar-03 -6.35 0.06 Apr-03 7.78 -0.09 May-03 0.67 0.6525 Jun-03 -2.44 0.5975 Jul-03 -0.98 1.8225 Aug-03 -6.26 0.96 Sep-03 -8.09 2.13 Oct-03 1.91 -0.93 Nov-03 7.67 -2.5925 Dec-03 0.88 -0.245 Jan-03 -1.46 3.4025 Feb-03 -1.93 2.095 Mar-03 3.77 -0.2675 Apr-03 -6.07 1.7025 May-03 -0.74 2.005 Jun-03 -7.12 1.9775 Jul-03 -7.8 1.6375 Aug-03 0.66 1.9625 Sep-03 -10.87 0.9725 Oct-03 8.8 -2.775 Nov-03 5.88 -3.745 Dec-03 -5.86 2.6025 Jan-03 -2.62 2.14 Feb-03 -1.5 0.1325 What do we make of this tendency to add more value in a falling market? Is this a good thing? What causes it? IS ADDING VALUE IN A FALLING MARKET AS VALUABLE AS ADDING VALUE IN A RISING MARKET? A simple thought experiment will reveal if adding value in a falling market is a good thing. What is often lost on investors is that a loss of a certain magnitude is far more damaging to final wealth than a gain of the same magnitude is positive for final wealth. During the latter 1990s, investors sought maximum growth and appreciation as the growth indices were climbing at extraordinary rates. Leaving aside the question of whether investors bought into this trend after it was largely played out, were investors understanding the risks they were taking? A popular demonstration of the magic of compounding is the question: "How would you feel about an investment that went up 50% on day one and down 50% on day two?" At first blush, this sounds like a wash, with zero return. Most stock-market investors would prefer a zero return to the returns sustained in recent years. First blush is absolutely the wrong conclusion however, because a dollar invested climbs 50 cents to $1.50 at the end of day one but then drops 75 cents (50% of $1.50) in day two. Thus the investor is not even on the two trades but has instead sustained a loss of 25% to his portfolio. What about adding value on the decline but at the cost of underperformance during a rising market? Instead of a 50% gain on day one an investment manager can only earn 40% (thus under-performing by 10%), but during the second day the manager only loses 40% (thus out-performing by 10%). Is the investor better off with this manager even though the 4 manager has not added value on average for the two periods? Surprisingly, the answer is yes, because at the end of day two the investor has 84 cents remaining. A 40% gain followed by a 40% loss is less costly than a 50% gain and loss. If you postulate that the investment manager under-performs by less (say 5%) in the bull market than the 10% she outperforms in the bear market, then the investor is further ahead with 87 cents remaining after day two. Conversely, if she adds 10% in the bull market of day one but under-performs by 5% in the bear market, the investor is worse off with only 72 cents remaining, even though the manager added value on average over the two periods. This simple thought experiment demonstrates how the ability to add value in a bear market is generally more valuable than out-performance in a bull market. Where this conclusion is vulnerable is during prolonged bull markets. Historically, bull markets have been longer-lived than bear markets, so many periods of persistent underperformance in a bull market may not leave the investor ahead if bear markets are infrequent and if the market climbs on average over long periods. Numeric has been managing quantitative investment strategies since 1989. Most of this period could be considered a bull market and most of our strategies were successful at adding value most of the time. Thus we believe that our strategies should normally be successful in rising markets as well as falling and we design them with this explicit objective in mind. Of course, we must emphasize that PRIOR RETURNS ARE NOT NECESSARILY INDICATIVE OF FUTURE SUCCESS and there is no guarantee that we will be successful in adding value or earning positive returns! We perceive that the success of our strategies in recent years has been due to market conditions that favored a rational-market strategy seeking attractive valuations and favorable information flow. Three years ago, valuations were as widely stretched as has ever been seen, with New Economy stocks selling at prices completely disconnected from their earnings while Old Economy stocks languished at bargain levels. Furthermore the market justified their lofty valuations by assuming that New Economy stocks would be immune to the business cycle. The reality has been somewhat different and prices have been correcting for most of the past three years, consistent with more rational valuations and the newly revealed information of business-cycle vulnerability (and occasionally accounting excesses). At times the market has tried to rally in response to Fed action or in an effort to "time the bottom". We believe these rallies have been sparked by hope, not reality. Companies with the least attractive valuations and information flow rally briefly, only to fall back in subsequent months. We believe our models are based on rational investor action and will fail during these speculative episodes, but rebound when reality is restored. Again however, we re-emphasize that PAST SUCCESS DOES NOT INDICATE FUTURE SUCCESS. In summary, we believe that adding value in bear markets is more valuable than in bull markets. And we have expressed our conviction that we can be successful in rising markets as well, provided that they are not driven by speculation. A SUGGESTION ABOUT IGNORING RECENT RETURNS Growth stocks and the New Economy have hurt investors so badly that no one wants to be reminded of them. Tremendous (if only momentary) wealth has been destroyed and investors' retirement and second-home plans have been deferred. You never hear anyone bragging about a growth stock at a cocktail party anymore. Partially because this is the asset class everyone wants to forget, we see evidence that now may be the time to invest in it. This cautious forecast is not a market timing call but rather a preference for growth stocks over value stocks. We leave it to you to decide when the market will resume its climb. 5 CHART THREE THREE-YEAR TOTAL RETURNS OF THE RUSSELL INDICES THROUGH FEBRUARY 28, 2003 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC GROWTH VALUE RUSSELL TOP 200 -56% -19% RUSSELL MIDCAP -59% 17% RUSSELL 2000 -62% 16% Chart Three displays the damage to growth stocks since the bursting of the New Economy Bubble three years ago. The Chart plots returns to the Growth and Value halves of the Russell Top 200, Russell Midcap, and Russell 2000 Indices to differentiate returns across the largest, midcap, and small cap stocks. Uniformly across all three capitalization strata, growth indices have declined over 50% and dramatically under-performed their value-index siblings over the past three years. Indeed the mid- and small-cap Value indices have actually appreciated over this period. Much of the differential in returns between the Growth and Value indices stems from the extraordinary spread in valuations between these indices at the peak of the Bubble. Chart Four plots the spread in price-earnings ratios between the Russell 3000 Growth and Value Indices since the beginning of these indices in March 1979. Note how the Growth Index has tended to sell at a price earnings multiple of around 150% of the multiple of the Value Index, except during the Bubble, when Growth stocks were briefly more than three times as expensive as Value stocks. Since the Bubble burst and the Growth indices have collapsed, the valuation spread has collapsed back to a normal range. There is no longer an unusual valuation differential that the market must correct at the expense of Growth stocks, as has been true for most of the past three years. 6 CHART FOUR THE PRICE OF GROWTH VERSUS VALUE Ratio of Russell 3000 Growth & Value Index P/E Ratios through February 2003 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC RATIO OF THE CAPITALIZATION-WEIGHTED AVERAGE P/E RATIOS Mar-79 1.45 Jun-79 1.52 Sep-79 1.48 Dec-79 1.54 Mar-80 1.49 Jun-80 1.40 Sep-80 1.52 Dec-80 1.62 Mar-81 1.60 Jun-81 1.57 Sep-81 1.52 Dec-81 1.52 Mar-82 1.44 Jun-82 1.43 Sep-81 1.44 Dec-81 1.52 Mar-83 1.58 Jun-83 1.59 Sep-83 1.52 Dec-83 1.52 Mar-84 1.44 Jun-84 1.52 Sep-84 1.45 Dec-84 1.41 Mar-85 1.44 Jun-85 1.42 Sep-85 1.41 Dec-85 1.44 Mar-86 1.42 Jun-86 1.43 Sep-86 1.29 Dec-86 1.33 Jan-87 1.37 Feb-87 1.42 Mar-87 1.39 Apr-87 1.37 May-87 1.34 Jun-87 1.48 Jul-87 1.45 Aug-87 1.44 Sep-87 1.43 Oct-87 1.36 Nov-87 1.33 Dec-87 1.43 Jan-88 1.35 Feb-88 1.38 Mar-88 1.34 Apr-88 1.33 May-88 1.28 Jun-88 1.37 Jul-88 1.32 Aug-88 1.30 Sep-88 1.33 Oct-88 1.32 Nov-88 1.32 Dec-88 1.35 Jan-89 1.37 Feb-89 1.34 Mar-89 1.35 Apr-89 1.36 May-89 1.37 Jun-89 1.41 Jul-89 1.46 Aug-89 1.42 Sep-89 1.43 Oct-89 1.41 Nov-89 1.38 Dec-89 1.39 Jan-90 1.40 Feb-90 1.36 Mar-90 1.37 Apr-90 1.39 May-90 1.37 Jun-90 1.53 Jul-90 1.49 Aug-90 1.45 Sep-90 1.42 Oct-90 1.42 Nov-90 1.38 Dec-90 1.37 Jan-91 1.36 Feb-91 1.32 Mar-91 1.33 Apr-91 1.28 May-91 1.28 Jun-91 1.26 Jul-91 1.31 Aug-91 1.32 Sep-91 1.29 Oct-91 1.28 Nov-91 1.29 Dec-91 1.35 Jan-92 1.35 Feb-92 1.30 Mar-92 1.28 Apr-92 1.24 May-92 1.17 Jun-92 1.26 Jul-92 1.29 Aug-92 1.30 Sep-92 1.28 Oct-92 1.30 Nov-92 1.28 Dec-92 1.24 Jan-93 1.26 Feb-93 1.15 Mar-93 1.16 Apr-93 1.14 May-93 1.20 Jun-93 1.23 Jul-93 1.20 Aug-93 1.21 Sep-93 1.19 Oct-93 1.23 Nov-93 1.25 Dec-93 1.26 Jan-94 1.28 Feb-94 1.29 Mar-94 1.27 Apr-94 1.27 May-94 1.27 Jun-94 1.30 Jul-94 1.32 Aug-94 1.37 Sep-94 1.39 Oct-94 1.41 Nov-94 1.44 Dec-94 1.43 Jan-95 1.42 Feb-95 1.44 Mar-95 1.45 Apr-95 1.45 May-95 1.45 Jun-95 1.44 Jul-95 1.49 Aug-95 1.44 Sep-95 1.46 Oct-95 1.48 Nov-95 1.46 Dec-95 1.44 Jan-96 1.43 Feb-96 1.44 Mar-96 1.43 Apr-96 1.45 May-96 1.48 Jun-96 1.60 Jul-96 1.52 Aug-96 1.53 Sep-96 1.59 Oct-96 1.54 Nov-96 1.52 Dec-96 1.53 Jan-97 1.51 Feb-97 1.48 Mar-97 1.43 Apr-97 1.46 May-97 1.51 Jun-97 1.52 Jul-97 1.46 Aug-97 1.45 Sep-97 1.43 Oct-97 1.44 Nov-97 1.44 Dec-97 1.42 Jan-98 1.47 Feb-98 1.46 Mar-98 1.47 Apr-98 1.48 May-98 1.44 Jun-98 1.63 Jul-98 1.59 Aug-98 1.58 Sep-98 1.60 Oct-98 1.58 Nov-98 1.60 Dec-98 1.67 Jan-99 1.75 Feb-99 1.66 Mar-99 1.71 Apr-99 1.60 May-99 1.63 Jun-99 1.83 Jul-99 1.88 Aug-99 1.99 Sep-99 2.01 Oct-99 2.04 Nov-99 2.17 Dec-99 2.36 Jan-00 2.42 Feb-00 2.70 Mar-00 2.53 Apr-00 2.53 May-00 2.34 Jun-00 3.33 Jul-00 2.77 Aug-00 3.05 Sep-00 2.70 Oct-00 2.48 Nov-00 2.17 Dec-00 2.01 Jan-01 2.14 Feb-01 1.86 Mar-01 1.79 Apr-01 2.00 May-01 1.97 Jun-01 1.81 Jul-01 1.75 Aug-01 1.68 Sep-01 1.63 Oct-01 1.72 Nov-01 1.77 Dec-01 1.73 Jan-02 1.68 Feb-02 1.59 Mar-02 1.57 Apr-02 1.51 May-02 1.46 Jun-02 1.41 Jul-02 1.46 Aug-02 1.42 Sep-02 1.43 Oct-02 1.44 Nov-02 1.41 Dec-02 1.40 Jan-03 1.39 Feb-03 1.40 Using a price-earnings ratio to value a stock implies certainty to both the price and the earnings. Whereas today's price is observable in the market, forecast earnings that the market uses to set prices are not observable a year in advance. Most of the time, realized earnings a year from now will be lower than the current earnings forecast. Indeed one of the greatest shocks to the New Economy hypothesis has been the disappointment in growth stock earnings. Currently however, growth stocks enjoy much more favorable earnings revisions than value stocks. Chart Five plots the huge disappointment to Growth stock earnings as the abrupt down-spike in early 2002. And the chart also reveals how strong growth-stock revisions have been compared to value-stock revisions in recent months. CHART FIVE SPREAD BETWEEN GROWTH AND VALUE INDEX DIFFUSION INDICES Russell 1000 Growth Index minus Russell 1000 Value Indices-- through late March 2003 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 3-MONTH AVERAGE SPREAD IN MONTHLY DIFFUSION INDICES Dec-86 Jan-87 Feb-87 Mar-87 3.68 Apr-87 4.01 May-87 3.88 Jun-87 4.70 Jul-87 7.02 Aug-87 8.95 Sep-87 7.82 Oct-87 5.97 Nov-87 2.82 Dec-87 2.80 Jan-88 3.49 Feb-88 4.09 Mar-88 5.87 Apr-88 5.11 May-88 6.62 Jun-88 5.24 Jul-88 4.91 Aug-88 3.91 Sep-88 3.98 Oct-88 3.49 Nov-88 1.78 Dec-88 0.92 Jan-89 1.32 Feb-89 2.15 Mar-89 2.58 Apr-89 2.19 May-89 2.04 Jun-89 1.09 Jul-89 2.15 Aug-89 2.59 Sep-89 3.43 Oct-89 4.43 Nov-89 5.16 Dec-89 5.32 Jan-90 3.38 Feb-90 3.30 Mar-90 2.83 Apr-90 3.89 May-90 5.11 Jun-90 5.90 Jul-90 6.79 Aug-90 5.60 Sep-90 6.03 Oct-90 5.36 Nov-90 5.73 Dec-90 4.87 Jan-91 4.23 Feb-91 3.77 Mar-91 4.91 Apr-91 4.80 May-91 3.39 Jun-91 2.44 Jul-91 2.01 Aug-91 1.13 Sep-91 0.56 Oct-91 0.29 Nov-91 -0.15 Dec-91 -0.15 Jan-92 -0.25 Feb-92 2.20 Mar-92 2.52 Apr-92 2.00 May-92 -0.58 Jun-92 -1.28 Jul-92 -0.32 Aug-92 1.83 Sep-92 3.76 Oct-92 4.45 Nov-92 5.71 Dec-92 4.06 Jan-93 2.85 Feb-93 0.52 Mar-93 -0.92 Apr-93 -2.95 May-93 -5.29 Jun-93 -5.63 Jul-93 -4.18 Aug-93 -5.62 Sep-93 -5.99 Oct-93 -6.82 Nov-93 -4.17 Dec-93 -2.33 Jan-94 -0.68 Feb-94 -0.22 Mar-94 -0.51 Apr-94 -0.70 May-94 0.65 Jun-94 0.30 Jul-94 0.72 Aug-94 0.09 Sep-94 0.70 Oct-94 0.03 Nov-94 1.05 Dec-94 1.83 Jan-95 2.34 Feb-95 0.62 Mar-95 -0.58 Apr-95 -0.66 May-95 1.27 Jun-95 1.87 Jul-95 3.69 Aug-95 4.32 Sep-95 4.81 Oct-95 2.16 Nov-95 0.17 Dec-95 -1.28 Jan-96 -0.28 Feb-96 0.74 Mar-96 1.03 Apr-96 0.30 May-96 -1.29 Jun-96 -1.39 Jul-96 -1.16 Aug-96 0.29 Sep-96 1.55 Oct-96 1.42 Nov-96 1.27 Dec-96 0.88 Jan-97 2.11 Feb-97 2.63 Mar-97 4.23 Apr-97 3.55 May-97 2.18 Jun-97 -0.83 Jul-97 2.13 Aug-97 5.83 Sep-97 7.00 Oct-97 4.15 Nov-97 2.52 Dec-97 1.36 Jan-98 1.71 Feb-98 0.98 Mar-98 1.32 Apr-98 0.65 May-98 2.00 Jun-98 3.09 Jul-98 6.13 Aug-98 6.91 Sep-98 7.32 Oct-98 7.04 Nov-98 6.39 Dec-98 10.08 Jan-99 10.10 Feb-99 10.79 Mar-99 8.95 Apr-99 5.71 May-99 1.61 Jun-99 -1.18 Jul-99 0.46 Aug-99 3.41 Sep-99 6.31 Oct-99 7.77 Nov-99 8.55 Dec-99 6.92 Jan-00 7.61 Feb-00 7.18 Mar-00 7.46 Apr-00 7.43 May-00 5.90 Jun-00 7.16 Jul-00 10.31 Aug-00 10.95 Sep-00 10.16 Oct-00 10.75 Nov-00 9.64 Dec-00 7.86 Jan-01 -0.24 Feb-01 -6.18 Mar-01 -12.01 Apr-01 -18.11 May-01 -15.08 Jun-01 -9.17 Jul-01 -1.56 Aug-01 0.61 Sep-01 1.72 Oct-01 3.12 Nov-01 4.75 Dec-01 3.09 Jan-02 -0.09 Feb-02 -1.74 Mar-02 -3.31 Apr-02 -5.16 May-02 -4.49 Jun-02 -3.67 Jul-02 -3.72 Aug-02 -1.77 Sep-02 2.28 Oct-02 9.98 Nov-02 11.61 Dec-02 11.24 Jan-03 11.30 Feb-03 10.12 Mar-03 9.61 ----------------------------- AVG = +2.54%; STD DEV = 5.37% ----------------------------- 7 Because earnings revisions form trends that persist for a while, the current trend suggests that realized earnings may be more disappointing for value stocks than for growth stocks. If value stocks are no longer cheap when compared to growth stocks and their earnings realizations prove especially disappointing, one should expect growth stocks to outperform. We suspect that most investors are avoiding growth stocks because of the pain they caused over the past three years. We suspect that most investors would be wise to ignore the last three years' returns and focus on present information. IN CONCLUSION As we write this letter in late March we are constantly distracted by the enormity of the geopolitical news. Such news distracts the market from its basic function of allocating capital from bad to better investment opportunities. Such news also frightens investors and causes the stock market to have fewer buyers than sellers. Distracting the market can cause our Funds to struggle in their effort to add value versus their benchmarks because the market is not processing information rationally. Frightening investors will depress the market. We believe that such periods will pass and that our continued focus on investing rationally and striving to add value versus our benchmarks will serve our shareholders well over the long-term. Thank you for your continued business. Sincerely, /s/ LANGDON B. WHEELER Langdon B. Wheeler, CFA President & Chief Investment Officer Numeric Investors L.P.(R) 8 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- COMMON STOCKS--96.0% ADVERTISING--0.7% 21,700 Arbitron Inc.* ..................................... $ 676,389 ----------- AEROSPACE & DEFENSE--1.9% 10,800 Engineered Support Systems, Inc. ................... 389,988 27,900 MTC Technologies, Inc.* ............................ 507,780 31,600 Teledyne Technologies Inc.* ........................ 402,900 70,000 Titan Corp. (The)* ................................. 556,500 ----------- 1,857,168 ----------- AIRLINES--1.2% 50,300 AirTran Holdings, Inc.* ............................ 299,285 39,264 Atlantic Coast Airlines Holdings, Inc.* ............ 247,363 59,900 ExpressJet Holdings, Inc.* ......................... 479,200 11,500 SkyWest, Inc. ...................................... 102,925 ----------- 1,128,773 ----------- AUTOMOBILE PARTS & EQUIPMENT--0.5% 40,200 Aftermarket Technology Corp.* ...................... 455,868 ----------- BANKS--2.5% 19,700 First BanCorp. ..................................... 493,879 29,400 Gold Banc Corporation, Inc. ........................ 289,002 18,900 Independent Bank Corp. ............................. 402,003 3,800 International Bancshares Corp. ..................... 145,232 32,435 R&G Financial Corp., Class B ....................... 721,679 17,100 S&T Bancorp, Inc. .................................. 436,392 ----------- 2,488,187 ----------- BIOTECH--2.4% 11,400 Adolor Corp.* ...................................... 144,666 16,900 Applera Corp. - Celera Genomics Group* ............. 139,425 2,400 Atrix Laboratories, Inc.* .......................... 28,296 18,800 BioMarin Pharmaceutical Inc.* ...................... 188,188 5,049 Martek Biosciences Corp.* .......................... 123,140 13,317 Neurocrine Biosciences, Inc.* ...................... 561,045 12,800 Regeneron Pharmaceuticals, Inc.* ................... 234,752 17,262 Scios Inc.* ........................................ 753,314 4,526 Trimeris, Inc.* .................................... 181,130 ----------- 2,353,956 ----------- BUILDING SUPPLIES--0.5% 29,340 Building Materials Holding Corp. ................... 381,420 18,000 Culp, Inc.* ........................................ 108,000 ----------- 489,420 ----------- -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- CHEMICALS - SPECIALTY--1.2% 40,700 MacDermid, Inc. .................................... $ 892,958 19,400 Octel Corp. ........................................ 312,340 ----------- 1,205,298 ----------- COMMERCIAL SERVICES--0.7% 12,500 McGrath Rentcorp ................................... 281,500 48,600 Sotheby's Holdings, Inc., Class A* ................. 404,838 ----------- 686,338 ----------- COMPUTER COMPONENTS--0.6% 73,800 Maxtor Corp.* ...................................... 442,800 18,200 Western Digital Corp.* ............................. 147,966 ----------- 590,766 ----------- COMPUTER NETWORKING PRODUCTS--2.1% 42,000 Avocent Corp.* ..................................... 1,168,440 42,940 NetScreen Technologies, Inc.* ...................... 838,618 ----------- 2,007,058 ----------- COMPUTER PERIPHERALS--1.2% 81,000 Lexar Media, Inc.* ................................. 330,480 69,300 Pinnacle Systems, Inc.* ............................ 672,903 39,050 Sonic Solutions* ................................... 165,963 ----------- 1,169,346 ----------- COMPUTER SERVICES--0.4% 29,300 Sykes Enterprises, Inc.* ........................... 101,964 14,594 Syntel, Inc.* ...................................... 276,556 ----------- 378,520 ----------- COMPUTER SOFTWARE--5.8% 12,637 ANSYS, Inc.* ....................................... 300,255 2,975 Hyperion Solutions Corp.* .......................... 76,576 131,650 Micromuse Inc.* .................................... 767,520 78,000 Packeteer, Inc.* ................................... 701,220 28,700 Plumtree Software, Inc.* ........................... 99,015 84,400 Rainbow Technologies, Inc.* ........................ 694,612 47,100 Take-Two Interactive Software, Inc.* ............... 984,861 34,100 TALX Corp. ......................................... 417,384 38,401 Verint Systems Inc.* ............................... 658,577 57,526 Verity, Inc.* ...................................... 959,534 ----------- 5,659,554 ----------- CONSUMER PRODUCTS--2.5% 20,900 Angelica Corp. ..................................... 377,245 21,500 Central Garden & Pet Co.* .......................... 492,350 13,900 Dial Corp. (The) ................................... 252,841 The accompanying notes are an integral part of the financial statements. 9 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- CONSUMER PRODUCTS--(CONTINUED) 58,900 Helen of Troy Ltd.* ................................ $ 771,001 7,600 Toro Co. (The) ..................................... 522,804 ----------- 2,416,241 ----------- DATA PROCESSING--0.6% 12,800 BioReliance Corp.* ................................. 217,612 57,400 Transaction Systems Architects, Inc., Class A* ......................................... 327,754 ----------- 545,366 ----------- ELECTRICAL EQUIPMENT--1.6% 17,600 A.O. Smith Corp. ................................... 453,728 31,100 Acuity Brands, Inc. ................................ 413,630 8,500 Anixter International Inc.* ........................ 199,325 18,800 Genlyte Group Inc. (The)* .......................... 531,288 ----------- 1,597,971 ----------- ELECTRONIC COMPONENTS & ACCESSORIES--3.4% 13,100 AMETEK, Inc. ....................................... 432,038 91,800 Artesyn Technologies, Inc.* ........................ 322,218 36,851 Artisan Components, Inc.* .......................... 605,830 30,300 Benchmark Electronics, Inc.* ....................... 1,055,652 29,600 Daktronics, Inc.* .................................. 480,704 107,900 Pemstar Inc.* ...................................... 306,436 12,700 Signal Technology Corp.* ........................... 131,191 ----------- 3,334,069 ----------- ELECTRONIC MEASUREMENTS - INSTRUMENTS--2.0% 14,419 Analogic Corp. ..................................... 655,055 36,000 II-VI Inc.* ........................................ 659,160 52,800 MTS Systems Corp. .................................. 602,448 ----------- 1,916,663 ----------- FINANCIAL SERVICES--2.6% 73,100 American Home Mortgage Holdings, Inc. .............. 778,515 49,800 Cash America International, Inc. ................... 444,216 33,050 New Century Financial Corp. ........................ 880,122 39,000 Saxon Capital, Inc.* ............................... 429,390 ----------- 2,532,243 ----------- FOOD & AGRICULTURE--3.0% 57,800 Chiquita Brands International, Inc.* ............... 556,614 129,400 Del Monte Foods Co.* ............................... 1,058,492 33,983 Fresh Del Monte Produce Inc. ....................... 616,451 16,400 Hain Celestial Group, Inc.* ........................ 236,488 22,800 Sanderson Farms, Inc. .............................. 438,695 ----------- 2,906,740 ----------- -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- HAZARDOUS WASTE MANAGEMENT--0.4% 31,000 Clean Harbors, Inc.* ............................... $ 403,930 ----------- HEALTH CARE--1.6% 28,200 AMERIGROUP Corp.* .................................. 724,458 70,648 Sierra Health Services, Inc.* ...................... 854,134 ----------- 1,578,592 ----------- HOSPITALS--0.7% 23,100 Pediatrix Medical Group, Inc.* ..................... 652,575 ----------- HOTELS & MOTELS--0.7% 27,970 Choice Hotels International, Inc.* ................. 660,092 ----------- INSURANCE - PROPERTY & CASUALTY--1.2% 3,300 Arch Capital Group Ltd.* ........................... 103,158 13,596 Phildelphia Consolidated Holding Corp.* ............ 423,515 29,500 PXRE Group Ltd. .................................... 590,000 27,800 Vesta Insurance Group, Inc. ........................ 76,450 ----------- 1,193,123 ----------- INTERNET CONTENT--2.2% 55,800 eUniverse, Inc.* ................................... 279,000 26,900 InfoSpace, Inc.* ................................... 312,040 27,300 NetFlix Inc.* ...................................... 467,103 60,800 S1 Corp.* .......................................... 313,728 54,500 United Online, Inc.* ............................... 777,170 ----------- 2,149,041 ----------- LEISURE & ENTERTAINMENT--0.8% 39,600 Argosy Gaming Co.* ................................. 633,996 9,900 Marvel Enterprises, Inc.* .......................... 110,682 8,600 Pinnacle Entertainment, Inc.* ...................... 34,142 ----------- 778,820 ----------- MANUFACTURING--3.8% 33,000 Albany International Corp., Class A ................ 730,620 17,800 Carlisle Companies Inc. ............................ 758,458 5,300 Curtiss-Wright Corp. ............................... 289,380 2,100 Franklin Electric Co., Inc. ........................ 102,963 22,900 Griffon Corp.* ..................................... 299,990 11,700 Jarden Corp.* ...................................... 313,677 10,700 Matthews International Corp., Class A .............. 243,757 4,200 Nordson Corp. ...................................... 100,506 13,900 Oshkosh Truck Corp. ................................ 849,290 ----------- 3,688,641 ----------- The accompanying notes are an integral part of the financial statements. 10 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- MEDICAL & MEDICAL SERVICES--0.6% 77,700 Prime Medical Services, Inc.* ...................... $ 602,952 ----------- MEDICAL INSTRUMENTS & SUPPLIES--5.3% 20,700 Advanced Medical Optics, Inc.* ..................... 239,085 74,800 ALARIS Medical, Inc.* .............................. 655,248 8,300 Biosite Inc.* ...................................... 259,541 22,700 Dionex Corp.* ...................................... 754,094 41,800 Hanger Orthopedic Group, Inc.* ..................... 435,974 11,700 HealthTronics Surgical Services, Inc.* ............. 104,832 29,961 IDEXX Laboratories, Inc.* .......................... 1,092,378 29,700 Medical Action Industries Inc.* .................... 292,842 34,729 Merit Medical Systems, Inc.* ....................... 598,033 30,574 STERIS Corp.* ...................................... 771,994 ----------- 5,204,021 ----------- MULTIMEDIA/PUBLISHING--0.9% 4,600 Courier Corp. ...................................... 209,806 16,100 Liberty Corp. (The) ................................ 632,086 11,000 Spanish Broadcasting System, Inc., Class A* ......................................... 66,990 ----------- 908,882 ----------- OFFICE & BUSINESS EQUIPMENT--0.7% 39,437 Global Imaging Systems, Inc.* ...................... 729,979 ----------- OIL & GAS EQUIPMENT & SERVICES--2.9% 28,900 Gulf Island Fabrication, Inc.* ..................... 523,379 82,900 Input/Output, Inc.* ................................ 319,165 27,800 Key Energy Services, Inc.* ......................... 291,900 11,700 Lufkin Industries, Inc. ............................ 272,610 31,906 Offshore Logistics, Inc.* .......................... 588,985 72,700 Oil States International, Inc.* .................... 828,780 ----------- 2,824,819 ----------- OIL & GAS FIELD EXPLORATION--1.3% 54,100 Harvest Natural Resources, Inc.* ................... 312,157 27,800 Swift Energy Co.* .................................. 258,818 69,000 Vintage Petroleum, Inc. ............................ 686,550 ----------- 1,257,525 ----------- OIL REFINING--0.5% 100,300 Tesoro Petroleum Corp.* ............................ 536,605 ----------- PAPER & ALLIED PRODUCTS--0.3% 11,200 Schweitzer-Mauduit International, Inc. ............. 257,376 ----------- -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- PHARMACEUTICALS--3.1% 45,000 Alpharma Inc., Class A ............................. $ 753,750 9,300 Amylin Pharmaceuticals, Inc.* ...................... 142,662 93,300 Endo Pharmaceuticals Holdings Inc.* ................ 929,268 14,100 Enzon Pharmaceuticals, Inc.* ....................... 176,955 37,100 Eon Labs, Inc.* .................................... 832,895 4,300 Pharmaceutical Resources, Inc.* .................... 161,035 ----------- 2,996,565 ----------- PRINTING--0.8% 32,900 John H. Harland Co. ................................ 756,042 ----------- REAL ESTATE INVESTMENT TRUSTS--3.5% 16,600 CBL & Associates Properties, Inc. .................. 661,510 69,200 Crown American Realty Trust ........................ 662,936 22,400 Macerich Co. (The) ................................. 720,160 17,300 Mid-Atlantic Realty Trust .......................... 298,771 25,400 Mills Corp. (The) .................................. 743,712 2,900 Tanger Factory Outlet Centers, Inc. ................ 87,145 20,400 Ventas, Inc. ....................................... 244,800 ----------- 3,419,034 ----------- RESIDENTIAL CONSTRUCTION--1.5% 28,600 Hovnanian Enterprises, Inc., Class A* .............. 938,938 19,792 M/I Schottenstein Homes, Inc. ...................... 512,613 ----------- 1,451,551 ----------- RESTAURANTS--1.3% 35,700 Landry's Restaurants, Inc. ......................... 585,480 25,100 Triarc Companies, Inc.* ............................ 668,915 ----------- 1,254,395 ----------- RETAIL - AUTOMOBILES--0.4% 50,700 Asbury Automotive Group Inc.* ...................... 372,645 ----------- RETAIL - DISCOUNT--0.7% 42,300 Tuesday Morning Corp.* ............................. 727,983 ----------- RETAIL - SPECIALTY--2.8% 19,700 Brookstone, Inc.* .................................. 287,620 15,500 Friedman's Inc., Class A ........................... 150,195 21,000 Jo-Ann Stores, Inc., Class A* ...................... 422,310 9,000 Mothers Work, Inc.* ................................ 259,830 28,307 Regis Corp. ........................................ 659,553 23,900 Select Comfort Corp.* .............................. 249,755 13,000 Shoe Carnival, Inc.* ............................... 165,230 51,000 ShopKo Stores, Inc.* ............................... 558,450 ----------- 2,752,943 ----------- The accompanying notes are an integral part of the financial statements. 11 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- SAVINGS & LOAN ASSOCIATIONS--5.3% 40,368 Dime Community Bancshares .......................... $ 866,297 35,850 Doral Financial Corp. .............................. 1,161,898 9,800 Downey Financial Corp. ............................. 393,470 35,400 Flagstar Bancorp, Inc. ............................. 858,450 8,700 Flushing Financial Corp. ........................... 150,510 21,900 Hawthorne Financial Corp.* ......................... 662,475 14,056 MAF Bancorp, Inc. .................................. 479,310 30,450 Oriental Financial Group Inc. ...................... 647,063 ----------- 5,219,473 ----------- SCHOOLS--2.8% 29,200 Corinthian Colleges, Inc.* ......................... 1,094,416 43,400 ITT Educational Services, Inc.* .................... 1,169,630 13,300 University of Phoenix Online* ...................... 497,154 ----------- 2,761,200 ----------- SEMICONDUCTORS--3.4% 100,141 Bell Microproducts Inc.* ........................... 606,855 40,109 Brooks Automation, Inc.* ........................... 405,903 49,100 Celeritek, Inc.* ................................... 344,682 132,400 Cirrus Logic, Inc.* ................................ 346,888 26,900 Kopin Corp.* ....................................... 126,161 96,700 Mykrolis Corp.* .................................... 651,758 64,000 PLX Technology, Inc.* .............................. 206,080 20,600 RadiSys Corp.* ..................................... 138,638 48,400 Semitool, Inc.* .................................... 248,776 5,300 Varian Semiconductor Equipment Associates, Inc.* ................................ 136,475 29,900 Vitesse Semiconductor Corp.* ....................... 67,574 ----------- 3,279,790 ----------- SERVICES - EMPLOYMENT AGENCIES--1.6% 26,000 CDI Corp.* ......................................... 591,500 46,398 Right Management Consultants, Inc.* ................ 545,177 33,000 Volt Information Sciences, Inc.* ................... 376,200 ----------- 1,512,877 ----------- SERVICES - MANAGEMENT CONSULTING--0.8% 20,700 Advisory Board Co. (The)* .......................... 677,925 15,200 PDI, Inc.* ......................................... 146,680 ----------- 824,605 ----------- TELECOMMUNICATIONS--0.2% 109,100 Stratex Networks, Inc.* ............................ 221,473 ----------- -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- TELECOMMUNICATIONS EQUIPMENT & SERVICES--4.2% 44,600 Allen Telecom Inc.* ................................ $ 586,490 28,100 American Tower Corp., Class A* ..................... 131,789 21,100 Applied Signal Technology, Inc.* ................... 282,529 114,100 Arris Group Inc.* .................................. 547,680 35,700 Boston Communications Group, Inc.* ................. 456,246 53,721 Brightpoint, Inc.* ................................. 612,419 13,969 Commonwealth Telephone Enterprises, Inc.* .......... 527,470 57,200 Crown Castle International Corp.* .................. 221,936 29,500 Intervoice, Inc.* .................................. 50,150 23,781 Mercury Computer Systems, Inc.* .................... 720,564 ----------- 4,137,273 ----------- TOBACCO--1.4% 90,300 DIMON Inc. ......................................... 552,636 47,460 Standard Commercial Corp. .......................... 797,328 ----------- 1,349,964 ----------- TRANSPORTATION--0.5% 50,200 General Maritime Corp.* ............................ 441,760 ----------- UTILITIES--0.4% 9,500 UGI Corp. .......................................... 393,300 ----------- Total Common Stocks (Cost $91,081,852) ............................... 93,695,780 ----------- PRINCIPAL AMOUNT (000'S) -------------- REPURCHASE AGREEMENTS--4.7% $ 3,752 Bear, Stearns & Co. Inc. (Agreement dated 02/28/03 to be repurchased at $3,752,500) 1.30%, 03/03/03 (Cost $3,752,093) (Note 7) ...................... 3,752,093 842 Bear, Stearns & Co. Inc. (Agreement dated 02/28/03 to be repurchased at $841,744) 0.656%, 03/03/03 (Cost $841,698) (Note 6) ......................... 841,698 ----------- Total Repurchase Agreements (Cost $4,593,791) ................................ 4,593,791 ----------- Total Investments -- 100.7% (Cost $95,675,643) ............................................ 98,289,571 ----------- Liabilities in Excess of Other Assets--(0.7)% ................... (683,760) ----------- Net Assets -- 100.0% ............................................ $97,605,811 =========== ---------- * Non-income producing. The accompanying notes are an integral part of the financial statements. 12 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- COMMON STOCKS--95.7% ADVERTISING--0.4% 4,100 Arbitron Inc.* ..................................... $ 127,797 ----------- AEROSPACE & DEFENSE--2.1% 900 Engineered Support Systems, Inc. ................... 32,499 5,000 MTC Technologies, Inc.* ............................ 91,000 2,400 Teledyne Technologies Inc.* ........................ 30,600 32,800 Titan Corp. (The)* ................................. 260,760 11,300 United Defense Industries, Inc.* ................... 242,724 ----------- 657,583 ----------- AIRLINES--1.0% 13,200 AirTran Holdings, Inc.* ............................ 78,540 11,400 Atlantic Coast Airlines Holdings, Inc.* ............ 71,820 16,100 ExpressJet Holdings, Inc.* ......................... 128,800 2,500 SkyWest, Inc. ...................................... 22,375 ----------- 301,535 ----------- APPAREL--1.1% 4,800 Kellwood Co. ....................................... 122,880 10,900 Russell Corp. ...................................... 176,035 8,200 Tommy Hilfiger Corp.* .............................. 51,414 ----------- 350,329 ----------- AUTOMOBILE PARTS & EQUIPMENT--1.1% 3,200 Aftermarket Technology Corp.* ...................... 36,288 9,700 American Axle & Manufacturing Holdings, Inc.* ............................................ 229,405 11,200 Dura Automotive Systems, Inc.* ..................... 78,960 ----------- 344,653 ----------- BIOTECH--2.0% 2,830 Affymetrix, Inc.* .................................. 74,712 3,800 Alkermes, Inc.* .................................... 30,172 3,200 BioMarin Pharmaceutical Inc.* ...................... 32,032 2,600 Cephalon, Inc.* .................................... 125,190 2,600 Charles River Laboratories International, Inc.* ............................................ 77,766 1,200 Invitrogen Corp.* .................................. 37,248 2,895 Neurocrine Biosciences, Inc.* ...................... 121,966 2,300 Scios Inc.* ........................................ 100,372 1,200 Trimeris, Inc.* .................................... 48,024 ----------- 647,482 ----------- BUILDING SUPPLIES--0.3% 4,500 Culp, Inc.* ........................................ 27,000 2,900 York International Corp. ........................... 62,060 ----------- 89,060 ----------- -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- CHEMICALS - SPECIALTY--0.4% 5,400 MacDermid, Inc. .................................... $ 118,476 ----------- COMMERCIAL SERVICES--0.6% 2,600 Expedia, Inc.* ..................................... 181,454 2,000 Sotheby's Holdings, Inc., Class A* ................. 16,660 ----------- 198,114 ----------- COMPUTER COMPONENTS--0.4% 19,400 Maxtor Corp.* ...................................... 116,400 ----------- COMPUTER NETWORKING PRODUCTS--2.4% 11,400 Avocent Corp.* ..................................... 317,148 7,100 Emulex Corp.* ...................................... 127,587 5,200 Juniper Networks, Inc.* ............................ 46,748 14,200 NetScreen Technologies, Inc.* ...................... 277,326 ----------- 768,809 ----------- COMPUTER PERIPHERALS--0.9% 26,800 Lexar Media, Inc.* ................................. 109,344 19,600 Pinnacle Systems, Inc.* ............................ 190,316 ----------- 299,660 ----------- COMPUTER SERVICES--0.2% 3,500 Syntel, Inc.* ...................................... 66,325 ----------- COMPUTER SOFTWARE--6.3% 2,200 ANSYS, Inc.* ....................................... 52,272 5,400 BMC Software, Inc.* ................................ 104,760 44,578 Compuware Corp.* ................................... 164,493 1,187 Electronic Arts Inc.* .............................. 62,674 1,204 Hyperion Solutions Corp.* .......................... 30,991 1,900 Mercury Interactive Corp.* ......................... 61,750 42,548 Micromuse Inc.* .................................... 248,055 16,400 Packeteer, Inc.* ................................... 147,436 19,600 Sybase, Inc.* ...................................... 287,924 14,400 Take-Two Interactive Software, Inc.* ............... 301,104 10,900 TALX Corp. ......................................... 133,416 6,711 Verint Systems Inc.* ............................... 115,094 16,992 Verity, Inc.* ...................................... 283,426 ----------- 1,993,395 ----------- CONSUMER PRODUCTS--2.0% 3,400 Angelica Corp. ..................................... 61,370 2,800 Central Garden & Pet Co.* .......................... 64,120 3,600 Department 56, Inc.* ............................... 39,600 5,500 Dial Corp. (The) ................................... 100,045 3,800 Scotts Co. (The), Class A* ......................... 191,330 2,500 Toro Co. (The) ..................................... 171,975 ----------- 628,440 ----------- The accompanying notes are an integral part of the financial statements. 13 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- CONSUMER SERVICES--0.3% 26,400 Service Corporation International* ................. $ 81,048 ----------- DATA PROCESSING--0.5% 6,200 Alliance Data Systems Corp.* ....................... 102,920 2,200 Global Payments Inc. ............................... 61,468 ----------- 164,388 ----------- ELECTRICAL EQUIPMENT--1.3% 6,200 A.O. Smith Corp. ................................... 159,836 8,100 Acuity Brands, Inc. ................................ 107,730 3,500 Anixter International Inc.* ........................ 82,075 1,700 Genlyte Group Inc. (The)* .......................... 48,042 ----------- 397,683 ----------- ELECTRONIC COMPONENTS & ACCESSORIES--2.8% 5,300 AMETEK, Inc. ....................................... 174,794 4,305 Artisan Components, Inc.* .......................... 70,774 5,500 Avnet, Inc.* ....................................... 56,650 9,900 Benchmark Electronics, Inc.* ....................... 344,916 2,900 Daktronics, Inc.* .................................. 47,096 6,659 Marvell Technology Group Ltd.* ..................... 137,176 16,600 Sanmina-SCI Corp.* ................................. 71,380 ----------- 902,786 ----------- ELECTRONIC MEASUREMENTS - INSTRUMENTS--0.7% 5,100 Analogic Corp. ..................................... 231,693 ----------- FINANCIAL SERVICES--3.0% 12,300 American Home Mortgage Holdings, Inc. .............. 130,995 2,600 Federated Investors, Inc., Class B ................. 65,832 6,900 H&R Block, Inc. .................................... 279,933 9,100 IndyMac Bancorp, Inc. .............................. 173,810 10,680 New Century Financial Corp. ........................ 284,408 ----------- 934,978 ----------- FOOD & AGRICULTURE--2.5% 7,300 Chiquita Brands International, Inc.* ............... 70,299 21,000 Del Monte Foods Co.* ............................... 171,780 13,100 Fresh Del Monte Produce Inc. ....................... 237,634 4,300 Hain Celestial Group, Inc.* ........................ 62,006 10,200 Ralcorp Holdings, Inc.* ............................ 260,610 ----------- 802,329 ----------- HAZARDOUS WASTE MANAGEMENT--0.3% 6,700 Clean Harbors, Inc.* ............................... 87,301 ----------- HEALTH CARE--3.0% 9,008 AMERIGROUP Corp.* .................................. 231,416 5,457 First Health Group Corp.* .......................... 131,568 -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- HEALTH CARE--(CONTINUED) 10,100 Mid Atlantic Medical Services, Inc.* ............... $ 361,075 20,000 Sierra Health Services, Inc.* ...................... 241,800 ----------- 965,859 ----------- HOSPITALS--0.5% 5,800 Pediatrix Medical Group, Inc.* ..................... 163,850 ----------- HOTELS & MOTELS--0.4% 4,900 Choice Hotels International, Inc.* ................. 115,640 ----------- INSURANCE - PROPERTY & CASUALTY--1.4% 1,200 Arch Capital Group Ltd.* ........................... 37,512 4,900 Everest Re Group, Ltd. ............................. 261,660 3,450 W. R. Berkley Corp. ................................ 140,070 ----------- 439,242 ----------- INTERNET CONTENT--1.9% 6,300 InfoSpace, Inc.* ................................... 73,080 5,563 Macromedia, Inc.* .................................. 88,118 4,800 NetFlix Inc.* ...................................... 82,128 22,000 S1 Corp.* .......................................... 113,520 16,700 United Online, Inc.* ............................... 238,142 ----------- 594,988 ----------- INVESTMENT MANAGEMENT--0.8% 6,000 BlackRock, Inc.* ................................... 249,600 ----------- LEISURE & ENTERTAINMENT--1.8% 13,100 Argosy Gaming Co.* ................................. 209,731 800 Aztar Corp.* ....................................... 9,464 11,600 GTECH Holdings Corp.* .............................. 337,560 1,500 Marvel Enterprises, Inc.* .......................... 16,770 ----------- 573,525 ----------- MANUFACTURING--4.4% 9,700 Albany International Corp., Class A ................ 214,758 4,300 AptarGroup, Inc. ................................... 130,290 5,200 Carlisle Companies Inc. ............................ 221,572 600 Curtiss-Wright Corp. ............................... 32,760 6,500 Griffon Corp.* ..................................... 85,150 3,300 Jarden Corp.* ...................................... 88,473 2,000 Matthews International Corp., Class A .............. 45,562 7,300 Modine Manufacturing Co. ........................... 111,909 1,400 Nordson Corp. ...................................... 33,502 4,900 Oshkosh Truck Corp. ................................ 299,390 2,900 Tecumseh Products Co., Class A ..................... 129,050 ----------- 1,392,416 ----------- The accompanying notes are an integral part of the financial statements. 14 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- MEDICAL INSTRUMENTS & SUPPLIES--8.9% 3,000 Advanced Medical Optics, Inc.* ..................... $ 34,650 25,023 Cytyc Corp.* ....................................... 318,543 6,327 DENTSPLY International Inc. ........................ 220,686 2,600 Dionex Corp.* ...................................... 86,372 11,400 Edwards Lifesciences Corp.* ........................ 303,354 1,100 Fisher Scientific International Inc.* .............. 31,603 5,400 Hanger Orthopedic Group, Inc.* ..................... 56,322 9,400 IDEXX Laboratories, Inc.* .......................... 342,724 3,800 Laboratory Corporation of America Holdings* ........................................ 105,526 9,875 Merit Medical Systems, Inc.* ....................... 170,047 6,600 St. Jude Medical, Inc.* ............................ 301,488 13,400 STERIS Corp.* ...................................... 338,350 9,800 Varian Medical Systems, Inc.* ...................... 495,390 ----------- 2,805,055 ----------- METALS--0.5% 23,600 USEC Inc. .......................................... 142,308 ----------- MULTIMEDIA/PUBLISHING--0.4% 3,500 Liberty Corp. (The) ................................ 137,410 ----------- OFFICE & BUSINESS EQUIPMENT--1.2% 9,300 Global Imaging Systems, Inc.* ...................... 172,143 16,600 IKON Office Solutions, Inc. ........................ 116,366 9,400 Ingram Micro Inc., Class A* ........................ 97,384 ----------- 385,893 ----------- OIL & GAS EQUIPMENT & SERVICES--1.9% 3,000 Key Energy Services, Inc.* ......................... 31,500 5,600 Kinder Morgan, Inc. ................................ 254,968 6,700 National-Oilwell, Inc.* ............................ 150,750 7,700 Offshore Logistics, Inc.* .......................... 142,142 1,100 Tidewater Inc. ..................................... 33,682 ----------- 613,042 ----------- OIL & GAS FIELD EXPLORATION--1.5% 3,900 Cimarex Energy Co.* ................................ 77,532 10,200 Harvest Natural Resources, Inc.* ................... 58,854 1,400 Patterson-UTI Energy, Inc.* ........................ 46,396 8,200 Swift Energy Co.* .................................. 76,342 13,400 Vintage Petroleum, Inc. ............................ 133,330 3,700 Westport Resources Corp.* .......................... 76,553 ----------- 469,007 ----------- OIL REFINING--0.5% 29,200 Tesoro Petroleum Corp.* ............................ 156,220 ----------- -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- PAPER & ALLIED PRODUCTS--0.3% 12,500 Louisiana-Pacific Corp.* ........................... $ 108,875 ----------- PHARMACEUTICALS--3.4% 14,700 Alpharma Inc., Class A ............................. 246,225 3,000 Amylin Pharmaceuticals, Inc.* ...................... 46,020 14,300 Endo Pharmaceuticals Holdings Inc.* ................ 142,428 2,200 Enzon Pharmaceuticals, Inc.* ....................... 27,610 11,600 Eon Labs, Inc.* .................................... 260,420 10,111 Pharmaceutical Product Development, Inc.* ............................................ 317,182 1,400 Pharmaceutical Resources, Inc.* .................... 52,430 ----------- 1,092,315 ----------- PRINTING--0.7% 9,100 John H. Harland Co. ................................ 209,118 ----------- REAL ESTATE INVESTMENT TRUSTS--2.1% 2,500 CBL & Associates Properties, Inc. .................. 99,625 1,600 First Industrial Realty Trust, Inc. ................ 44,960 25,900 HRPT Properties Trust .............................. 220,409 3,600 Macerich Co. (The) ................................. 115,740 10,700 MeriStar Hospitality Corp. ......................... 28,569 3,100 Mills Corp. (The) .................................. 90,768 4,300 Ventas, Inc. ....................................... 51,600 ----------- 651,671 ----------- RESIDENTIAL CONSTRUCTION--2.2% 5,300 Centex Corp. ....................................... 292,984 8,800 Hovnanian Enterprises, Inc., Class A* .............. 288,904 5,000 M/I Schottenstein Homes, Inc. ...................... 129,500 ----------- 711,388 ----------- RESTAURANTS--1.0% 2,500 Applebee's International, Inc. ..................... 64,100 4,600 CBRL Group, Inc. ................................... 122,820 7,800 Landry's Restaurants, Inc. ......................... 127,920 ----------- 314,840 ----------- RETAIL - AUTOMOBILES--0.2% 7,500 Asbury Automotive Group Inc.* ...................... 55,125 ----------- RETAIL - DISCOUNT--0.6% 11,900 Tuesday Morning Corp.* ............................. 204,799 ----------- RETAIL - SPECIALTY--5.2% 7,500 Abercrombie & Fitch Co., Class A* .................. 206,250 3,800 AutoZone, Inc.* .................................... 250,040 7,100 Brown Shoe Co., Inc. ............................... 192,694 7,500 Jo-Ann Stores, Inc., Class A* ...................... 150,825 2,500 Mothers Work, Inc.* ................................ 72,175 The accompanying notes are an integral part of the financial statements. 15 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- RETAIL - SPECIALTY--(CONTINUED) 8,211 PETsMART, Inc.* .................................... $ 122,755 9,748 Regis Corp. ........................................ 227,128 6,925 Ross Stores, Inc. .................................. 236,904 16,000 ShopKo Stores, Inc.* ............................... 175,200 ----------- 1,633,971 ----------- SAVINGS & LOAN ASSOCIATIONS--6.7% 8,594 Dime Community Bancshares .......................... 184,427 14,100 Doral Financial Corp. .............................. 456,981 5,900 Downey Financial Corp. ............................. 236,885 7,100 FirstFed Financial Corp.* .......................... 213,000 11,900 Flagstar Bancorp, Inc. ............................. 288,575 6,700 GreenPoint Financial Corp. ......................... 284,616 8,967 Independence Community Bank Corp. .................. 232,963 2,500 MAF Bancorp, Inc. .................................. 85,250 1,400 New York Community Bancorp, Inc. ................... 40,054 4,732 Washington Federal, Inc. ........................... 105,050 ----------- 2,127,801 ----------- SCHOOLS--2.6% 1,987 Apollo Group, Inc., Class A ........................ 92,078 9,200 Corinthian Colleges, Inc.* ......................... 344,816 10,500 ITT Educational Services, Inc.* .................... 282,975 3,029 University of Phoenix Online* ...................... 113,224 ----------- 833,093 ----------- SEMICONDUCTORS--1.5% 12,176 Brooks Automation, Inc.* ........................... 123,221 31,450 Cirrus Logic, Inc.* ................................ 82,399 26,600 Mykrolis Corp.* .................................... 179,284 1,700 Varian Semiconductor Equipment Associates, Inc.* ................................ 43,775 20,600 Vitesse Semiconductor Corp.* ....................... 46,556 ----------- 475,235 ----------- SERVICES - EMPLOYMENT AGENCIES--1.0% 5,400 CDI Corp.* ......................................... 122,850 15,918 Right Management Consultants, Inc.* ................ 187,037 ----------- 309,887 ----------- -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- SERVICES - MANAGEMENT CONSULTING--0.5% 4,400 Advisory Board Co. (The)* .......................... $ 144,100 ----------- STEEL--0.7% 19,800 United States Steel Corp. .......................... 230,076 ----------- TELECOMMUNICATIONS EQUIPMENT & SERVICES--3.6% 15,100 ADC Telecommunications, Inc.* ...................... 33,824 9,600 American Tower Corp., Class A* ..................... 45,024 44,300 Arris Group Inc.* .................................. 212,640 1,300 Commonwealth Telephone Enterprises, Inc.* ............................................ 49,088 19,600 Crown Castle International Corp.* .................. 76,048 9,600 Harris Corp. ....................................... 287,616 8,709 Mercury Computer Systems, Inc.* .................... 263,882 9,654 UTStarcom, Inc.* ................................... 175,510 ----------- 1,143,632 ----------- TOBACCO--0.6% 6,500 Loews Corp. - Carolina Group ....................... 139,100 3,700 Standard Commercial Corp. .......................... 62,160 ----------- 201,260 ----------- TRANSPORTATION--0.5% 600 Landstar System, Inc.* ............................. 32,472 4,900 Ryder System, Inc. ................................. 111,181 ----------- 143,653 ----------- UTILITIES--0.2% 7,900 Reliant Resources, Inc.* ........................... 31,995 1,000 UGI Corp. .......................................... 41,400 ----------- 73,395 ----------- WHOLESALE - DISTRIBUTION--0.4% 9,800 Handleman Co.* ..................................... 138,180 ----------- Total Common Stocks (Cost $30,567,035) ............................... 30,316,733 ----------- The accompanying notes are an integral part of the financial statements. 16 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] GROWTH FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- PRINCIPAL VALUE AMOUNT (000'S) (NOTE 1) -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--4.6% $ 1,120 Bear, Stearns & Co. Inc. (Agreement dated 02/28/03 to be repurchased at $1,120,546) 1.30%, 03/03/03 (Cost $1,120,425) (Note 7) ....................... $ 1,120,425 343 Bear, Stearns & Co. Inc. (Agreement dated 02/28/03 to be repurchased at $342,941) 0.656%, 03/03/03 (Cost $342,922) (Note 6) ......................... 342,922 ----------- Total Repurchase Agreements (Cost $1,463,347) ................................ 1,463,347 ----------- Total Investments -- 100.3% (Cost $32,030,382) ............................................ 31,780,080 ----------- Liabilities in Excess of Other Assets -- (0.3)% ................. (81,716) ----------- Net Assets -- 100.0% ............................................ $31,698,364 =========== ---------- * Non-income producing. The accompanying notes are an integral part of the financial statements. 17 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] MID CAP FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- COMMON STOCKS--97.6% AEROSPACE & DEFENSE--1.0% 10,000 United Defense Industries, Inc.* ................... $ 214,800 ----------- APPAREL--1.0% 6,300 V. F. Corp. ........................................ 213,255 ----------- AUTOMOBILE--0.7% 4,400 General Motors Corp. ............................... 148,588 ----------- AUTOMOBILE PARTS & EQUIPMENT--0.8% 29,600 Visteon Corp. ...................................... 187,960 ----------- BANKS--5.7% 5,800 Charter One Financial, Inc. ........................ 167,678 5,800 First Tennessee National Corp. ..................... 221,502 8,100 National City Corp. ................................ 223,722 2,400 Popular, Inc. ...................................... 81,336 6,200 SouthTrust Corp. ................................... 167,338 6,900 Union Planters Corp. ............................... 189,888 6,700 Washington Mutual, Inc. ............................ 231,351 ----------- 1,282,815 ----------- BIOTECH--0.4% 2,100 Neurocrine Biosciences, Inc.* ...................... 88,473 ----------- BUILDING SUPPLIES--0.2% 1,900 York International Corp. ........................... 40,660 ----------- CHEMICALS - BASIC--0.5% 3,300 Eastman Chemical Co. ............................... 106,227 ----------- CHEMICALS - SPECIALTY--1.9% 2,800 Ashland Inc. ....................................... 77,868 15,400 RPM International, Inc. ............................ 154,000 7,500 Sherwin-Williams Co. (The) ......................... 200,250 ----------- 432,118 ----------- COMMERCIAL SERVICES--0.5% 5,200 ARAMARK Corp., Class B* ............................ 114,140 ----------- COMPUTER COMPONENTS--0.5% 14,200 Western Digital Corp.* ............................. 115,446 ----------- COMPUTER NETWORKING PRODUCTS--3.6% 7,200 Avocent Corp.* ..................................... 200,304 27,100 EMC Corp.* ......................................... 200,269 3,600 Emulex Corp.* ...................................... 64,692 7,600 NetScreen Technologies, Inc.* ...................... 148,428 5,700 QLogic Corp.* ...................................... 201,837 ----------- 815,530 ----------- -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- COMPUTER PERIPHERALS--1.0% 3,700 Lexmark International, Inc.* ....................... $ 230,917 ----------- COMPUTER SOFTWARE--2.7% 1,900 Electronic Arts Inc.* .............................. 100,320 16,300 Siebel Systems, Inc.* .............................. 140,669 7,500 Symantec Corp.* .................................... 303,525 3,100 Take-Two Interactive Software, Inc.* ............... 64,821 ----------- 609,335 ----------- CONSUMER PRODUCTS--2.8% 2,800 Black & Decker Corp. (The) ......................... 102,760 11,300 Dial Corp. (The) ................................... 205,547 5,100 Fortune Brands, Inc. ............................... 223,584 10,100 Owens-Illinois, Inc.* .............................. 90,900 ----------- 622,791 ----------- DATA PROCESSING--0.4% 2,200 Affiliated Computer Services, Inc., Class A* ....... 98,626 ----------- ELECTRICAL EQUIPMENT--1.2% 9,100 Hubbell Inc., Class B .............................. 279,916 ----------- ELECTRONIC COMPONENTS & ACCESSORIES--0.3% 1,400 Jabil Circuit, Inc.* ............................... 23,254 2,287 Marvell Technology Group Ltd.* ..................... 47,113 ----------- 70,367 ----------- ENERGY--1.3% 12,900 CONSOL Energy Inc. ................................. 229,620 4,100 TXU Corp. .......................................... 65,477 ----------- 295,097 ----------- FINANCIAL SERVICES--2.4% 6,000 H&R Block, Inc. .................................... 243,420 9,400 IndyMac Bancorp, Inc. .............................. 179,540 3,000 MBIA Inc. .......................................... 114,390 ----------- 537,350 ----------- FOOD & AGRICULTURE--4.6% 6,500 ConAgra Foods, Inc. ................................ 149,955 1,900 Dean Foods Co.* .................................... 80,123 26,900 Del Monte Foods Co.* ............................... 220,042 11,200 Fresh Del Monte Produce Inc. ....................... 203,168 5,000 General Mills, Inc. ................................ 214,350 8,800 Sara Lee Corp. ..................................... 174,240 ----------- 1,041,878 ----------- The accompanying notes are an integral part of the financial statements. 18 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] MID CAP FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- HAZARDOUS WASTE MANAGEMENT--0.9% 5,400 Stericycle, Inc.* .................................. $ 191,322 ----------- HEALTH CARE--3.1% 2,100 CIGNA Corp. ........................................ 90,237 3,900 First Health Group Corp.* .......................... 94,029 3,300 Oxford Health Plans, Inc.* ......................... 92,400 2,000 UnitedHealth Group Inc. ............................ 165,800 3,600 WellPoint Health Networks Inc.* .................... 244,836 ----------- 687,302 ----------- INSURANCE - HEALTH & LIFE--0.3% 4,700 UnumProvident Corp. ................................ 61,100 ----------- INSURANCE - PROPERTY & CASUALTY--2.4% 2,000 CNA Financial Corp.* ............................... 45,980 1,300 Everest Re Group, Ltd. ............................. 69,420 12,600 Old Republic International Corp. ................... 343,980 3,400 Travelers Property Casualty Corp., Class A ......... 53,210 1,400 Travelers Property Casualty Corp., Class B ......... 22,260 ----------- 534,850 ----------- INVESTMENT MANAGEMENT--0.7% 3,700 BlackRock, Inc.* ................................... 153,920 ----------- LEISURE & ENTERTAINMENT--3.7% 10,300 GTECH Holdings Corp.* .............................. 299,730 2,000 International Game Technology* ..................... 157,160 11,900 Mattel, Inc. ....................................... 253,708 8,700 Royal Caribbean Cruises Ltd. ....................... 117,885 ----------- 828,483 ----------- MANUFACTURING--2.3% 9,300 ArvinMeritor, Inc. ................................. 142,104 9,000 Lear Corp.* ........................................ 341,820 400 United Technologies Corp. .......................... 23,432 ----------- 507,356 ----------- MEDICAL & MEDICAL SERVICES--0.3% 1,100 Express Scripts, Inc.* ............................. 56,892 ----------- MEDICAL INSTRUMENTS & SUPPLIES--7.8% 6,600 Becton, Dickinson & Co. ............................ 227,040 9,600 Cytyc Corp.* ....................................... 122,208 800 DENTSPLY International Inc. ........................ 27,904 900 Edwards Lifesciences Corp.* ........................ 23,949 5,500 Fisher Scientific International Inc.* .............. 158,015 3,200 Guidant Corp.* ..................................... 114,432 1,800 Henry Schein, Inc.* ................................ 72,000 -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- MEDICAL INSTRUMENTS & SUPPLIES--(CONTINUED) 5,300 Hillenbrand Industries, Inc. ....................... $ 264,735 1,500 IDEXX Laboratories, Inc.* .......................... 54,690 3,200 Laboratory Corporation of America Holdings* ........................................ 88,864 3,500 St. Jude Medical, Inc.* ............................ 159,880 9,000 STERIS Corp.* ...................................... 227,250 3,900 Varian Medical Systems, Inc.* ...................... 197,145 ----------- 1,738,112 ----------- MULTIMEDIA/PUBLISHING--0.5% 4,500 Fox Entertainment Group, Inc., Class A* ............ 120,285 ----------- OFFICE & BUSINESS EQUIPMENT--1.9% 30,800 IKON Office Solutions, Inc. ........................ 215,908 20,600 Ingram Micro Inc., Class A* ........................ 213,416 ----------- 429,324 ----------- OIL & GAS EQUIPMENT & SERVICES--2.7% 2,700 Kinder Morgan, Inc. ................................ 122,931 7,700 Questar Corp. ...................................... 214,676 7,200 Tidewater Inc. ..................................... 220,464 2,700 Varco International, Inc.* ......................... 51,192 ----------- 609,263 ----------- OIL & GAS FIELD EXPLORATION--4.0% 4,100 Amerada Hess Corp. ................................. 182,573 4,300 ConocoPhillips ..................................... 218,010 10,100 Marathon Oil Corp. ................................. 233,209 2,800 Unocal Corp. ....................................... 73,780 6,200 Westport Resources Corp.* .......................... 128,278 2,000 XTO Energy, Inc. ................................... 50,420 ----------- 886,270 ----------- OIL REFINING--1.2% 3,300 Sunoco, Inc. ....................................... 116,787 4,000 Valero Energy Corp. ................................ 156,040 ----------- 272,827 ----------- PAPER & ALLIED PRODUCTS--0.4% 5,700 Georgia-Pacific Corp. .............................. 85,557 ----------- PHARMACEUTICALS--1.3% 2,000 Amylin Pharmaceuticals, Inc.* ...................... 30,680 1,900 Medicis Pharmaceutical Corp., Class A* ............. 88,540 5,500 Pharmaceutical Product Development, Inc.* ............................................ 172,535 ----------- 291,755 ----------- The accompanying notes are an integral part of the financial statements. 19 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] MID CAP FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- PHOTOGRAPHIC EQUIPMENT--0.5% 3,600 Eastman Kodak Co. .................................. $ 106,560 ----------- REAL ESTATE INVESTMENT TRUSTS--1.3% 1,800 Apartment Investment & Management Co. .............. 66,186 4,300 General Growth Properties, Inc., Class A ........... 224,761 ----------- 290,947 ----------- RESIDENTIAL CONSTRUCTION--1.9% 5,500 KB HOME ............................................ 257,950 500 NVR, Inc.* ......................................... 165,975 ----------- 423,925 ----------- RESTAURANTS--1.9% 7,100 Applebee's International, Inc. ..................... 182,044 8,900 CBRL Group, Inc. ................................... 237,630 ----------- 419,674 ----------- RETAIL - SPECIALTY--4.4% 5,000 Abercrombie & Fitch Co., Class A* .................. 137,500 2,300 Advance Auto Parts, Inc.* .......................... 89,746 2,100 AutoZone, Inc.* .................................... 138,180 4,900 Rent-A-Center, Inc.* ............................... 244,755 6,100 Ross Stores, Inc. .................................. 208,681 3,700 Staples, Inc.* ..................................... 64,047 600 Timberland Co. (The), Class A* ..................... 23,040 3,000 Williams-Sonoma, Inc.* ............................. 69,840 ----------- 975,789 ----------- SAVINGS & LOAN ASSOCIATIONS--8.0% 1,900 American Capital Strategies, Ltd. .................. 46,930 8,000 AmSouth Bancorp .................................... 164,800 7,800 Banknorth Group, Inc. .............................. 176,748 7,150 Doral Financial Corp. .............................. 231,731 4,200 GreenPoint Financial Corp. ......................... 178,416 3,700 Hibernia Corp., Class A ............................ 67,044 6,900 Independence Community Bank Corp. .................. 179,262 4,700 New York Community Bancorp, Inc. ................... 134,467 12,817 Roslyn Bancorp, Inc. ............................... 255,315 10,450 Washington Federal, Inc. ........................... 231,990 3,400 Webster Financial Corp. ............................ 121,040 ----------- 1,787,743 ----------- -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- SEMICONDUCTORS--1.8% 5,200 Applied Materials, Inc.* ........................... $ 67,496 12,700 LSI Logic Corp.* ................................... 56,388 14,300 Micron Technology, Inc.* ........................... 114,257 6,000 Teradyne, Inc.* .................................... 69,540 5,700 Texas Instruments Inc. ............................. 95,475 ----------- 403,156 ----------- STEEL--0.9% 17,900 United States Steel Corp. .......................... 207,998 ----------- TELECOMMUNICATIONS--0.8% 3,900 QUALCOMM Inc.* ..................................... 134,862 3,600 Sprint Corp. - Fon Group ........................... 45,720 ----------- 180,582 ----------- TELECOMMUNICATIONS EQUIPMENT & SERVICES--2.3% 4,800 ADTRAN, Inc.* ...................................... 154,512 7,300 Harris Corp. ....................................... 218,708 5,600 Nextel Communications, Inc., Class A* .............. 78,848 3,700 UTStarcom, Inc.* ................................... 67,266 ----------- 519,334 ----------- TOBACCO--0.1% 1,400 Loews Corp. - Carolina Group ....................... 29,960 ----------- TRANSPORTATION--1.6% 3,600 Burlington Northern Santa Fe Corp. ................. 90,000 9,700 Ryder System, Inc. ................................. 220,093 800 Union Pacific Corp. ................................ 44,152 ----------- 354,245 ----------- UTILITIES--4.5% 17,400 CenterPoint Energy, Inc. ........................... 80,910 5,700 DPL Inc. ........................................... 68,970 12,000 ONEOK, Inc. ........................................ 206,760 7,100 PG&E Corp.* ........................................ 90,525 6,600 Public Service Enterprise Group, Inc. .............. 228,558 16,600 TECO Energy, Inc. .................................. 183,928 2,700 UGI Corp. .......................................... 111,780 2,000 Wisconsin Energy Corp. ............................. 45,700 ----------- 1,017,131 ----------- WHOLESALE - GROCERIES & GENERAL LINE--0.6% 10,100 SUPERVALU INC. ..................................... 140,592 ----------- Total Common Stocks (Cost $22,993,489) ............................... 21,858,543 ----------- The accompanying notes are an integral part of the financial statements. 20 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] MID CAP FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- PRINCIPAL VALUE AMOUNT (000'S) (NOTE 1) -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--1.7% $ 300 Bear, Stearns & Co. Inc. (Agreement dated 02/28/03 to be repurchased at $300,462) 1.30%, 03/03/03 (Cost $300,429) (Note 7) ......................... $ 300,429 82 Bear, Stearns & Co. Inc. (Agreement dated 02/28/03 to be repurchased at $82,211) 0.656%, 03/03/03 (Cost $82,206) (Note 6) .......................... 82,206 ----------- Total Repurchase Agreements (Cost $382,635) .................................. 382,635 ----------- Total Investments -- 99.3% (Cost $23,376,124) ............................................ 22,241,178 ----------- Other Assets in Excess of Liabilities -- 0.7% ................... 167,122 ----------- Net Assets -- 100.0% ............................................ $22,408,300 =========== ---------- * Non-income producing. The accompanying notes are an integral part of the financial statements. 21 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- COMMON STOCKS--97.7% AEROSPACE & DEFENSE--1.7% 44,300 Armor Holdings, Inc.* .............................. $ 498,375 8,500 Kaman Corp., Class A ............................... 83,555 76,800 Titan Corp. (The)* ................................. 610,560 38,800 United Defense Industries, Inc.* ................... 833,424 ------------ 2,025,914 ------------ AIRLINES--0.3% 51,200 ExpressJet Holdings, Inc.* ......................... 409,600 ------------ APPAREL--0.7% 20,000 Kellwood Co. ....................................... 512,000 20,700 Russell Corp. ...................................... 334,305 ------------ 846,305 ------------ AUTOMOBILE--0.2% 7,900 Thor Industries, Inc. .............................. 202,951 ------------ AUTOMOBILE PARTS & EQUIPMENT--0.4% 67,500 Visteon Corp. ...................................... 428,625 ------------ BANKS--3.2% 9,400 Community Bank System, Inc. ........................ 307,286 23,900 First BanCorp ...................................... 599,173 8,200 Frontier Financial Corp. ........................... 206,894 22,400 Independent Bank Corp. ............................. 476,448 37,200 Irwin Financial Corp. .............................. 673,320 70,700 R&G Financial Corp., Class B ....................... 1,573,075 ------------ 3,836,196 ------------ BIOTECH--0.2% 9,800 Applera Corp. - Celera Genomics Group* ............. 80,850 72,800 ArQule Inc.* ....................................... 172,536 ------------ 253,386 ------------ BUILDING SUPPLIES--0.5% 18,100 Building Materials Holding Corp. ................... 235,300 59,400 Culp, Inc.* ........................................ 356,400 ------------ 591,700 ------------ CHEMICALS - BASIC--0.5% 9,500 Airgas, Inc.* ...................................... 166,250 41,000 Millennium Chemicals Inc. .......................... 447,720 ------------ 613,970 ------------ -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- CHEMICALS - SPECIALTY--0.9% 7,400 MacDermid, Inc. .................................... $ 162,356 68,700 RPM International, Inc. ............................ 687,000 24,100 Wellman, Inc. ...................................... 255,701 ------------ 1,105,057 ------------ COMMERCIAL SERVICES--0.2% 9,200 McGrath Rentcorp ................................... 207,184 ------------ COMPUTER COMPONENTS--0.7% 72,900 Maxtor Corp.* ...................................... 437,400 47,900 Western Digital Corp.* ............................. 389,427 ------------ 826,827 ------------ COMPUTER NETWORKING PRODUCTS--0.9% 29,300 Avocent Corp.* ..................................... 815,126 17,400 Overland Storage, Inc* ............................. 249,342 ------------ 1,064,468 ------------ COMPUTER PERIPHERALS--0.3% 14,000 Hutchinson Technology Inc.* ........................ 302,960 ------------ COMPUTER SERVICES--0.1% 23,900 Gartner, Inc., Class A* ............................ 174,948 ------------ COMPUTER SOFTWARE--2.7% 19,700 ANSYS, Inc.* ....................................... 468,072 7,200 StarTek, Inc.* ..................................... 169,704 46,000 Sybase, Inc.* ...................................... 675,740 30,800 Take-Two Interactive Software, Inc.* ............... 644,028 104,100 TALX Corp. ......................................... 1,274,184 ------------ 3,231,728 ------------ CONSUMER PRODUCTS--2.6% 21,500 Central Garden & Pet Co.* .......................... 492,350 44,700 Department 56, Inc.* ............................... 491,700 34,285 Helen of Troy Ltd.* ................................ 448,791 12,000 Scotts Co. (The), Class A* ......................... 604,200 5,800 Toro Co. (The) ..................................... 398,982 54,100 Tupperware Corp. ................................... 674,627 ------------ 3,110,650 ------------ ELECTRICAL EQUIPMENT--2.9% 58,300 A.O. Smith Corp. ................................... 1,502,974 108,200 Acuity Brands, Inc. ................................ 1,439,060 19,700 Anixter International Inc.* ........................ 461,965 ------------ 3,403,999 ------------ The accompanying notes are an integral part of the financial statements. 22 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- ELECTRONIC COMPONENTS & ACCESSORIES--1.0% 14,900 Avnet, Inc.* ....................................... $ 153,470 26,600 Benchmark Electronics, Inc.* ....................... 926,744 8,700 Daktronics, Inc.* .................................. 141,288 ------------ 1,221,502 ------------ ELECTRONIC MEASUREMENTS - INSTRUMENTS--2.0% 28,600 Analogic Corp. ..................................... 1,299,298 55,141 MTS Systems Corp. .................................. 629,159 64,900 Zygo Corp. ......................................... 401,082 ------------ 2,329,539 ------------ ENERGY--0.9% 57,100 CONSOL Energy Inc. ................................. 1,016,380 ------------ FINANCIAL SERVICES--3.3% 44,627 American Home Mortgage Holdings, Inc. .............. 475,277 110,000 Cash America International, Inc. ................... 981,200 41,900 IndyMac Bancorp, Inc. .............................. 800,290 53,000 New Century Financial Corp. ........................ 1,411,390 22,000 Saxon Capital, Inc.* ............................... 242,220 ------------ 3,910,377 ------------ FOOD & AGRICULTURE--3.4% 34,100 Chiquita Brands International, Inc.* ............... 328,383 14,900 Corn Products International, Inc. .................. 447,745 43,200 Del Monte Foods Co.* ............................... 353,376 77,600 Fresh Del Monte Produce Inc. ....................... 1,407,664 8,700 Hain Celestial Group, Inc.* ........................ 125,454 41,200 Ralcorp Holdings, Inc.* ............................ 1,052,660 15,038 Sanderson Farms, Inc. .............................. 289,346 ------------ 4,004,628 ------------ HAZARDOUS WASTE MANAGEMENT--0.1% 13,000 Clean Harbors, Inc.* ............................... 169,390 ------------ HEALTH CARE--1.1% 25,800 AMERIGROUP Corp.* .................................. 662,802 58,200 Sierra Health Services, Inc.* ...................... 703,638 ------------ 1,366,440 ------------ HOTELS & MOTELS--0.8% 41,300 Choice Hotels International, Inc.* ................. 974,680 ------------ INSURANCE - HEALTH & LIFE--1.2% 4,400 AmerUs Group Co. ................................... 115,412 6,000 Delphi Financial Group, Inc., Class A .............. 221,100 106,100 Phoenix Companies, Inc. (The) ...................... 825,458 28,600 UICI* .............................................. 287,430 ------------ 1,449,400 ------------ -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- INSURANCE - PROPERTY & CASUALTY--2.1% 64,300 Allmerica Financial Corp. .......................... $ 909,845 6,500 Arch Capital Group Ltd.* ........................... 203,190 7,900 PMA Capital Corp., Class A ......................... 77,815 21,800 PXRE Group Ltd. .................................... 436,000 38,400 Stewart Information Services Corp.* ................ 883,200 ------------ 2,510,050 ------------ LEISURE & ENTERTAINMENT--0.6% 24,100 GTECH Holdings Corp.* .............................. 701,310 ------------ MACHINERY--0.1% 7,300 Stewart & Stevenson Services, Inc. ................. 70,664 ------------ MANUFACTURING--6.3% 53,300 Albany International Corp., Class A ................ 1,180,062 20,000 Cascade Corp. ...................................... 283,600 19,600 Curtiss-Wright Corp. ............................... 1,070,160 25,300 Jarden Corp.* ...................................... 678,293 37,400 Matthews International Corp., Class A .............. 852,009 26,530 Oshkosh Truck Corp. ................................ 1,620,983 36,400 Tecumseh Products Co., Class A ..................... 1,619,800 13,800 Worthington Industries, Inc. ....................... 190,164 ------------ 7,495,071 ------------ MEDICAL & MEDICAL SERVICES--0.6% 16,350 Kindred Healthcare, Inc.* .......................... 264,067 57,900 Prime Medical Services, Inc.* ...................... 449,304 ------------ 713,371 ------------ MEDICAL INSTRUMENTS & SUPPLIES--1.1% 13,000 Advanced Medical Optics, Inc.* ..................... 150,150 25,940 CONMED Corp.* ...................................... 394,288 19,900 Edwards Lifesciences Corp.* ........................ 529,539 20,500 Hanger Orthopedic Group, Inc.* ..................... 213,815 ------------ 1,287,792 ------------ METALS--0.1% 23,800 USEC Inc. .......................................... 143,514 ------------ OFFICE & BUSINESS EQUIPMENT--1.7% 38,633 Global Imaging Systems, Inc.* ...................... 715,097 185,200 IKON Office Solutions, Inc. ........................ 1,298,252 ------------ 2,013,349 ------------ OIL & GAS EQUIPMENT & SERVICES--0.8% 7,223 Offshore Logistics, Inc.* .......................... 133,337 73,500 Oil States International, Inc.* .................... 837,900 ------------ 971,237 ------------ The accompanying notes are an integral part of the financial statements. 23 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- OIL & GAS FIELD EXPLORATION--3.0% 7,400 Evergreen Resources, Inc.* ......................... $ 333,592 8,100 Nuevo Energy Co.* .................................. 101,493 37,200 Patina Oil & Gas Corp. ............................. 1,238,016 3,200 Penn Virginia Corp. ................................ 118,432 10,400 Remington Oil & Gas Corp.* ......................... 196,248 35,800 Swift Energy Co.* .................................. 333,298 63,000 Vintage Petroleum, Inc. ............................ 626,850 32,800 Westport Resources Corp.* .......................... 678,632 ------------ 3,626,561 ------------ OIL REFINING--0.1% 5,500 Holly Corp. ........................................ 122,375 2,800 Plains Resources Inc.* ............................. 31,892 ------------ 154,267 ------------ PACKAGING--0.7% 39,100 Silgan Holdings Inc.* .............................. 794,512 ------------ PAPER & ALLIED PRODUCTS--2.1% 26,600 Caraustar Industries, Inc.* ........................ 198,436 70,800 Louisiana-Pacific Corp.* ........................... 616,668 28,200 Rock-Tenn Co., Class A ............................. 365,190 56,300 Schweitzer-Mauduit International, Inc. ............. 1,293,774 ------------ 2,474,068 ------------ PHARMACEUTICALS--1.9% 74,700 Alpharma Inc., Class A ............................. 1,251,225 104,200 ICN Pharmaceuticals, Inc. .......................... 1,002,404 ------------ 2,253,629 ------------ PRINTING--0.4% 22,900 John H. Harland Co. ................................ 526,242 ------------ REAL ESTATE INVESTMENT TRUSTS--10.0% 42,500 Boykin Lodging Co. ................................. 335,750 40,400 CBL & Associates Properties, Inc. .................. 1,609,940 41,600 Correctional Properties Trust ...................... 874,432 113,700 Crown American Realty Trust ........................ 1,089,246 41,800 Developers Diversified Realty Corp. ................ 973,940 16,500 Entertainment Properties Trust ..................... 409,200 34,700 First Industrial Realty Trust, Inc. ................ 975,070 8,200 Highwoods Properties, Inc. ......................... 172,282 162,700 HRPT Properties Trust .............................. 1,384,577 19,800 Macerich Co. (The) ................................. 636,570 137,600 MeriStar Hospitality Corp. ......................... 367,392 36,000 Mills Corp. (The) .................................. 1,054,080 17,900 Parkway Properties, Inc. ........................... 652,455 21,500 Tanger Factory Outlet Centers, Inc. ................ 646,075 -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS--(CONTINUED) 21,700 Trizec Properties, Inc. ............................ $ 186,837 43,600 Ventas, Inc. ....................................... 523,200 ------------ 11,891,046 ------------ RESIDENTIAL CONSTRUCTION--1.2% 24,200 Hovnanian Enterprises, Inc., Class A* .............. 794,486 23,500 M/I Schottenstein Homes, Inc. ...................... 608,650 ------------ 1,403,136 ------------ RESTAURANTS--2.8% 35,763 Applebee's International, Inc. ..................... 916,964 44,169 CBRL Group, Inc. ................................... 1,179,312 75,000 Landry's Restaurants, Inc. ......................... 1,230,000 ------------ 3,326,276 ------------ RETAIL - DISCOUNT--0.6% 41,300 Tuesday Morning Corp.* ............................. 710,773 ------------ RETAIL - SPECIALTY--2.8% 33,900 Brown Shoe Co., Inc. ............................... 920,046 32,000 Jo-Ann Stores, Inc., Class A* ...................... 643,520 9,200 Jos. A. Bank Clothiers, Inc.* ...................... 212,520 39,900 ShopKo Stores, Inc.* ............................... 436,905 6,300 Timberland Co. (The), Class A* ..................... 241,920 43,000 World Fuel Services Corp. .......................... 860,000 ------------ 3,314,911 ------------ SAVINGS & LOAN ASSOCIATIONS--9.3% 16,340 American Capital Strategies, Ltd. .................. 403,598 140,800 BankAtlantic Bancorp, Inc., Class A ................ 1,277,056 4,100 Dime Bancorp, Inc., Litigation Tracking Warrants* ........................................ 492 59,515 Dime Community Bancshares .......................... 1,277,192 19,300 Downey Financial Corp. ............................. 774,895 4,300 First Niagara Financial Group, Inc. ................ 47,988 30,500 FirstFed Financial Corp.* .......................... 915,000 66,525 Flagstar Bancorp, Inc. ............................. 1,613,231 9,300 Hawthorne Financial Corp.* ......................... 281,325 4,700 Hudson United Bancorp .............................. 148,238 41,731 Independence Community Bank Corp. .................. 1,084,171 34,700 MAF Bancorp, Inc. .................................. 1,183,270 22,425 Oriental Financial Group Inc. ...................... 476,531 4,200 Roslyn Bancorp, Inc. ............................... 83,664 54,263 Washington Federal, Inc. ........................... 1,204,639 8,700 Webster Financial Corp. ............................ 309,720 ------------ 11,081,010 ------------ The accompanying notes are an integral part of the financial statements. 24 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2003 (UNAUDITED) -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- SEMICONDUCTORS--1.8% 26,100 Bell Microproducts Inc.* ........................... $ 158,166 74,766 Brooks Automation, Inc.* ........................... 756,632 51,100 Cirrus Logic, Inc.* ................................ 133,882 24,200 Cree, Inc.* ........................................ 411,884 6,500 International Rectifier Corp.* ..................... 145,275 39,700 Mykrolis Corp.* .................................... 267,578 11,500 Varian Semiconductor Equipment Associates, Inc.* ................................ 296,125 ------------ 2,169,542 ------------ SERVICES - EMPLOYMENT AGENCIES--1.2% 31,900 CDI Corp.* ......................................... 725,725 60,350 Right Management Consultants, Inc.* ................ 709,112 ------------ 1,434,837 ------------ STEEL--1.5% 33,904 Steel Technologies Inc. ............................ 360,739 118,400 United States Steel Corp. .......................... 1,375,808 ------------ 1,736,547 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES--2.3% 11,200 ADTRAN, Inc.* ...................................... 360,528 36,300 Allen Telecom Inc.* ................................ 477,345 29,300 Applied Signal Technology, Inc.* ................... 392,327 5,000 Boston Communications Group, Inc.* ................. 63,900 62,400 Brightpoint, Inc.* ................................. 711,360 19,800 Commonwealth Telephone Enterprises, Inc.* ............................................ 747,648 ------------ 2,753,108 ------------ TOBACCO--0.3% 68,400 DIMON Inc. ......................................... 418,608 ------------ TRANSPORTATION--2.2% 82,600 General Maritime Corp.* ............................ 726,880 13,850 Genesee & Wyoming Inc., Class A* ................... 211,905 24,200 Overseas Shipholding Group, Inc. ................... 385,748 57,400 Ryder System, Inc. ................................. 1,302,406 ------------ 2,626,939 ------------ -------------------------------------------------------------------------------- VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- UTILITIES--6.4% 61,400 AGL Resources Inc. ................................. $ 1,360,010 40,200 Energen Corp. ...................................... 1,222,884 39,300 NUI Corp. .......................................... 595,788 104,500 ONEOK, Inc. ........................................ 1,800,535 43,100 Southwestern Energy Co.* ........................... 504,270 42,200 UGI Corp. .......................................... 1,747,080 10,200 UIL Holdings Corp. ................................. 335,580 ------------ 7,566,147 ------------ WHOLESALE - DISTRIBUTION--0.9% 72,100 Handleman Co.* ..................................... 1,016,610 ------------ Total Common Stocks (Cost $118,648,573) .............................. 116,263,931 ------------ PRINCIPAL AMOUNT (000'S) -------------- REPURCHASE AGREEMENTS--2.5% $ 2,340 Bear, Stearns & Co. Inc. (Agreement dated 02/28/03 to be repurchased at $2,340,336) 1.30%, 03/03/03 (Cost $2,340,083) (Note 7) ....................... 2,340,083 557 Bear, Stearns & Co. Inc. (Agreement dated 02/28/03 to be repurchased at $557,246) 0.656%, 03/03/03 (Cost $557,216) (Note 6) ......................... 557,216 ------------ Total Repurchase Agreements (Cost $2,897,299) ................................ 2,897,299 ------------ Total Investments -- 100.2% (Cost $121,545,872) ........................................... 119,161,230 ------------ Liabilities in Excess of Other Assets--(0.2)% ................... (198,168) ------------ Net Assets -- 100.0% ............................................ $118,963,062 ============ ---------- * Non-income producing. The accompanying notes are an integral part of the financial statements. 25 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] STATEMENTS OF ASSETS AND LIABILITIES FEBRUARY 28, 2003 (UNAUDITED)
EMERGING GROWTH GROWTH MID CAP SMALL CAP VALUE FUND FUND FUND FUND --------------- ------------ ----------- --------------- ASSETS Investments, at value (Cost -- $95,675,643, $32,030,382, $23,376,124, $121,545,872, respectively) ..................................... $ 98,289,571 $ 31,780,080 $22,241,178 $119,161,230 Receivable for investments sold ...................... 1,413,789 798,163 980,200 4,365,589 Receivable for Fund shares sold ...................... 36 9,000 100 603,091 Dividends and interest receivable .................... 68,949 21,801 34,037 168,521 Receivable from investment adviser ................... -- -- 2,925 -- Prepaid expenses and other assets .................... 11,795 7,726 7,642 24,702 ------------ ------------ ----------- ------------ Total assets ...................................... 99,784,140 32,616,770 23,266,082 124,323,133 ------------ ------------ ----------- ------------ LIABILITIES Payable for investments purchased .................... 1,203,974 515,619 741,334 3,575,272 Payable upon return of securities loaned (Note 6) .... 841,698 342,922 82,206 557,216 Payable for Fund shares redeemed ..................... 6,702 -- -- 1,045,122 Investment advisory fee payable ...................... 56,262 24,095 -- 124,788 Accrued expenses and other liabilities ............... 69,693 35,770 34,242 57,673 ------------ ------------ ----------- ------------ Total liabilities ................................. 2,178,329 918,406 857,782 5,360,071 ------------ ------------ ----------- ------------ NET ASSETS Capital stock, $0.001 par value ...................... 8,626 3,704 2,048 8,520 Additional paid-in capital ........................... 111,530,007 49,675,609 31,877,973 135,522,599 Undistributed net investment income/(loss) ........... (238,005) (180,559) 97,488 (82,758) Accumulated net realized loss from investments ....................................... (16,308,745) (17,550,088) (8,434,263) (14,100,657) Net unrealized appreciation/(depreciation) on investments .................................... 2,613,928 (250,302) (1,134,946) (2,384,642) ------------ ------------ ----------- ------------ Net assets applicable to shares outstanding .......... $ 97,605,811 $ 31,698,364 $22,408,300 $118,963,062 ============ ============ =========== ============ Shares outstanding ...................................... 8,626,463 3,704,100 2,047,980 8,519,726 ------------ ------------ ----------- ------------ Net asset value, offering and redemption price per share ........................................... $11.31 $8.56 $10.94 $13.96 ====== ===== ====== ======
The accompanying notes are an integral part of the financial statements. 26 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBUARY 28, 2003 (UNAUDITED)
EMERGING GROWTH GROWTH MID CAP SMALL CAP VALUE FUND FUND FUND FUND --------------- ----------- ----------- --------------- INVESTMENT INCOME Dividends* ........................................... $ 303,266 $ 101,442 $ 198,763 $ 951,919 Interest ............................................. 35,414 10,846 6,608 20,697 Securities lending ................................... 12,765 3,322 1,231 9,765 ----------- ----------- ----------- ------------ Total investment income ........................... 351,445 115,610 206,602 982,381 ----------- ----------- ----------- ------------ EXPENSES Advisory fees ........................................ 356,340 214,568 50,567 790,146 Co-Administration fees ............................... 87,790 50,433 46,930 106,625 Administrative services fees ......................... 71,268 24,424 17,492 87,794 Transfer agent fees and expenses ..................... 29,919 23,999 23,999 30,364 Printing ............................................. 39,000 8,368 12,936 35,150 Federal and state registration fees .................. 8,651 5,819 6,928 15,427 Audit and legal fees ................................. 47,320 13,899 9,918 53,374 Custodian fees and expenses .......................... 16,654 4,885 3,498 22,659 Directors' fees and expenses ......................... 7,211 2,181 1,691 10,157 Other ................................................ 2,898 942 689 3,378 ----------- ----------- ----------- ------------ Total expenses before waivers and reimbursements, if any ......................... 667,051 349,518 174,648 1,155,074 Less: waivers and reimbursements, if any .......... (77,601) (53,349) (65,534) (89,935) ----------- ----------- ----------- ------------ Net expenses after waivers and reimbursements, if any ......................... 589,450 296,169 109,114 1,065,139 ----------- ----------- ----------- ------------ Net Investment Income/(Loss) ...................... (238,005) (180,559) 97,488 (82,758) ----------- ----------- ----------- ------------ NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS: Net realized loss from investments ................... (6,090,380) (2,939,680) (2,194,319) (13,263,070) Net change in unrealized appreciation/(depreciation) on investments .................................... 2,129,606 1,196,262 79,575 5,812 ----------- ----------- ----------- ------------ Net realized and unrealized loss on investments ....................................... (3,960,774) (1,743,418) (2,114,744) (13,257,258) ----------- ----------- ----------- ------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................................... $(4,198,779) $(1,923,977) $(2,017,256) $(13,340,016) =========== =========== =========== ============ ---------- * Net of foreign withholding taxes of $2,298, $310, $343 and $2,641 for the Emerging Growth Fund, Growth Fund, Mid Cap Fund and Small Cap Value Fund, respectively.
The accompanying notes are an integral part of the financial statements. 27 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] STATEMENTS OF CHANGES IN NET ASSETS
EMERGING GROWTH GROWTH FUND FUND ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED FISCAL SIX MONTHS ENDED FISCAL FEBRUARY 28, 2003 YEAR ENDED FEBRUARY 28, 2003 YEAR ENDED (UNAUDITED) AUGUST 31, 2002 (UNAUDITED) AUGUST 31, 2002 ----------------- --------------- ----------------- --------------- INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income/(loss) ......................... $ (238,005) $ (833,120) $ (180,559) $ (359,234) Net realized gain/(loss) from investments ............ (6,090,380) 635,625 (2,939,680) (2,221,509) Net change in unrealized appreciation/(depreciation) on investments .................................... 2,129,606 (8,936,144) 1,196,262 (2,217,432) ----------- ------------ ----------- ----------- Net increase/(decrease) in net assets resulting from operations ................................... (4,198,779) (9,133,639) (1,923,977) (4,798,175) ----------- ------------ ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income ................................ -- -- -- -- Net realized capital gains ........................... -- -- -- -- ----------- ------------ ----------- ----------- Total dividends and distributions to shareholders .... -- -- -- -- ----------- ------------ ----------- ----------- INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 5) .................. 4,939,479 (33,927,799) (411,536) (1,098,115) ----------- ------------ ----------- ----------- Total increase/(decrease) in net assets .............. 740,700 (43,061,438) (2,335,513) (5,896,290) NET ASSETS Beginning of period .................................. 96,865,111 139,926,549 34,033,877 39,930,167 ----------- ------------ ----------- ----------- End of period* ....................................... $97,605,811 $ 96,865,111 $31,698,364 $34,033,877 =========== ============ =========== =========== MID CAP SMALL CAP VALUE FUND FUND ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED FISCAL SIX MONTHS ENDED FISCAL FEBRUARY 28, 2003 YEAR ENDED FEBRUARY 28, 2003 YEAR ENDED (UNAUDITED) AUGUST 31, 2002 (UNAUDITED) AUGUST 31, 2002 ----------------- --------------- ----------------- --------------- INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income/(loss) ......................... $ 97,488 $ 167,407 $ (82,758) $ (344,322) Net realized gain/(loss) from investments ............ (2,194,319) (1,498,981) (13,263,070) 9,707,831 Net change in unrealized appreciation/(depreciation) on investments .................................... 79,575 (1,234,846) 5,812 (4,975,947) ----------- ----------- ------------ ------------ Net increase/(decrease) in net assets resulting from operations ................................... (2,017,256) (2,566,420) (13,340,016) 4,387,562 ----------- ----------- ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income ................................ (167,268) (145,129) -- (38,820) Net realized capital gains ........................... -- -- (10,075,786) (5,799,905) ----------- ----------- ------------ ------------ Total dividends and distributions to shareholders .... (167,268) (145,129) (10,075,786) (5,838,725) ----------- ----------- ------------ ------------ INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 5) .................. (516,005) (3,377,823) 11,998,548 96,267,850 ----------- ----------- ------------ ------------ Total increase/(decrease) in net assets .............. (2,700,529) (6,089,372) (11,417,254) 94,816,687 NET ASSETS Beginning of period .................................. 25,108,829 31,198,201 130,380,316 35,563,629 ----------- ----------- ------------ ------------ End of period* ....................................... $22,408,300 $25,108,829 $118,963,062 $130,380,316 =========== =========== ============ ============ ----------- * Includes undistributed net investment income/(loss) as follows: FOR THE FOR THE SIX MONTHS ENDED FISCAL FEBRUARY 28, 2003 YEAR ENDED (UNAUDITED) AUGUST 31, 2002 ----------------- --------------- Emerging Growth Fund .................. $(238,005) -- Growth Fund ........................... (180,559) -- Mid Cap Fund .......................... 97,488 $167,268 Small Cap Value Fund .................. (82,758) --
The accompanying notes are an integral part of the financial statements. 28 & 29 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [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. --------------------------------------------------------------------------------
EMERGING GROWTH FUND ----------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FISCAL YEARS ENDED AUGUST 31, FEBRUARY 28, 2003 --------------------------------------------------------- (UNAUDITED) 2002 2001 2000 1999 1998 ----------------- ------- ------- ------- ------- ------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ............... $ 11.81 $ 12.73 $ 20.99 $ 18.03 $ 12.52 $ 18.47 ------- ------- ------- ------- ------- ------- Net investment loss ................................ (0.03) (0.10) (0.07) (0.10) (0.18) (0.07) Net realized and unrealized gain/(loss) on investments(1) .................................. (0.47) (0.82) (3.58) 7.39 6.72 (3.23) ------- ------- ------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations ................................. (0.50) (0.92) (3.65) 7.29 6.54 (3.30) ------- ------- ------- ------- ------- ------- Distributions to shareholders from: Net realized capital gains ......................... -- -- (4.61) (4.33) (1.03) (2.65) ------- ------- ------- ------- ------- ------- Net asset value, end of period ..................... $ 11.31 $ 11.81 $ 12.73 $ 20.99 $ 18.03 $ 12.52 ======= ======= ======= ======= ======= ======= Total investment return(2) ......................... (4.23)% (7.23)% (20.16)% 54.42% 56.09% (20.74)% ======= ======= ======= ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .......... $97,606 $96,865 $139,927 $134,533 $ 76,349 $99,266 Ratio of expenses to average net assets(3) ......... 1.24%(4) 1.12% 1.07% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and expense reimbursements, if any .......................... 1.40%(4) 1.26% 1.25% 1.28% 1.26% 1.23% Ratio of net investment loss to average net assets(3) ................................... (0.50)%(4) (0.75)% (0.67)% (0.55)% (0.46)% (0.41)% Portfolio turnover rate ............................ 95.03% 216.40% 280.00% 297.08% 316.02% 408.70% GROWTH FUND ------------------------------------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE FISCAL YEARS ENDED AUGUST 31, FEBRUARY 28, 2003 --------------------------------------------------------- (UNAUDITED) 2002 2001 2000 1999 1998 ----------------- ------- ------- ------- ------- ------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ............... $ 9.07 $ 10.48 $ 23.69 $ 14.89 $ 9.75 $ 16.29 ------- ------- ------- ------- ------- ------- Net investment loss ................................ (0.05) (0.10) (0.10) (0.12) (0.18) (0.07) Net realized and unrealized gain/(loss) on investments(1) .................................. (0.46) (1.31) (6.59) 9.29 5.33 (3.98) ------- ------- ------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations ................................. (0.51) (1.41) (6.69) 9.17 5.15 (4.05) ------- ------- ------- ------- ------- ------- Distributions to shareholders from: Net realized capital gains ......................... -- -- (6.52) (0.37) (0.01) (2.49) ------- ------- ------- ------- ------- ------- Net asset value, end of period ..................... $ 8.56 $ 9.07 $ 10.48 $ 23.69 $ 14.89 $ 9.75 ======= ======= ======= ======= ======= ======= Total investment return(2) ......................... (5.62)% (13.45)% (36.45)% 63.11% 52.80% (29.03)% ======= ======= ======= ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .......... $31,698 $34,034 $39,930 $79,520 $62,376 $77,840 Ratio of expenses to average net assets(3) ......... 1.82%(4) 1.35% 1.08% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and expense reimbursements, if any .......................... 2.15%(4) 1.54% 1.36% 1.32% 1.30% 1.24% Ratio of net investment loss to average net assets(3) ................................... (1.11)%(4) (0.96)% (0.70)% (0.59)% (0.45)% (0.50)% Portfolio turnover rate ............................ 97.32% 241.28% 271.29% 228.69% 309.60% 338.40% ----------- (1) The amounts shown for a share outstanding throughout the respective periods are not in accord with the changes in the aggregate gains and losses on investments during the respective periods because of the timing of the sales and repurchases of fund shares in relation to fluctuating net asset values during the respective periods. (2) Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total investment returns are not annualized. (3) Reflects waivers and expense reimbursements, if any. (4) Annualized.
The accompanying notes are an integral part of the financial statements. 30 & 31 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [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 YEARS ENDED AUGUST 31, FEBRUARY 28, 2003 --------------------------------------------------------- (UNAUDITED) 2002 2001 2000 1999 1998 ----------------- ------- ------- ------- ------- ------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ............... $ 11.98 $ 13.16 $ 19.22 $ 16.89 $ 13.30 $ 17.16 ------- ------- ------- ------- ------- ------- Net investment income/(loss) ....................... 0.05 0.08 0.06 0.08 0.05 0.05 Net realized and unrealized gain/(loss) on investments and futures transactions, if any(1) ....................................... (1.01) (1.22) (2.98) 4.25 4.97 (1.24) ------- ------- ------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations ................................. (0.96) (1.14) (2.92) 4.33 5.02 (1.19) ------- ------- ------- ------- ------- ------- Dividends and distributions to shareholders from: Net investment income .............................. (0.08) (0.06) (0.08) (0.03) (0.06) (0.06) Net realized capital gains ......................... -- -- (3.06) (1.97) (1.37) (2.61) ------- ------- ------- ------- ------- ------- Total dividends and distributions to shareholders .. (0.08) (0.06) (3.14) (2.00) (1.43) (2.67) ------- ------- ------- ------- ------- ------- Redemption fees (Note 5) ........................... -- 0.02 -- -- -- -- ------- ------- ------- ------- ------- ------- Net asset value, end of period ..................... $ 10.94 $ 11.98 $ 13.16 $ 19.22 $ 16.89 $ 13.30 ======= ======= ======= ======= ======= ======= Total investment return(2) ......................... (8.02)% (8.48)% (17.42)% 29.61% 41.61% (8.97)% ======= ======= ======= ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .......... $22,408 $25,109 $31,198 $44,430 $49,156 $110,176 Ratio of expenses to average net assets(3) ......... 0.94%(4) 0.85% 0.91% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and expense reimbursements, if any ...... 1.50%(4) 1.27% 1.39% 1.61% 1.33% 1.26% Ratio of net investment income/(loss) to average net assets(3) ................................... 0.84%(4) 0.59% 0.39% 0.40% 0.31% 0.36% Portfolio turnover rate ............................ 102.01% 270.77% 318.28% 378.17% 384.71% 341.73% SMALL CAP VALUE FUND -------------------------------------------------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS ENDED FOR THE FISCAL YEARS ENDED AUGUST 31, NOVEMBER 30, 1998* FEBRUARY 28, 2003 ------------------------------------- THROUGH (UNAUDITED) 2002 2001 2000 AUGUST 31, 1999 ----------------- -------- ------- ------- ------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ............... $ 16.86 $ 17.61 $ 12.91 $ 12.86 $ 12.00 ------- -------- ------- ------- ------- Net investment income/(loss) ....................... (0.01) (0.05) 0.02 0.15 0.10 Net realized and unrealized gain/(loss) on investments and futures transactions, if any(1) ....................................... (1.52) 1.71 4.79 1.32 0.76 ------- -------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations ................................. (1.53) 1.66 4.81 1.47 0.86 ------- -------- ------- ------- ------- Dividends and distributions to shareholders from: Net investment income .............................. -- (0.02) (0.14) (0.10) -- Net realized capital gains ......................... (1.41) (2.58) -- (1.32) -- ------- -------- ------- ------- ------- Total dividends and distributions to shareholders .. (1.41) (2.60) (0.14) (1.42) -- ------- -------- ------- ------- ------- Redemption fees (Note 5) ........................... 0.04 0.19 0.03 -- -- ------- -------- ------- ------- ------- Net asset value, end of period ..................... $ 13.96 $ 16.86 $ 17.61 $ 12.91 $ 12.86 ======= ======== ======= ======= ======= Total investment return(2) ......................... (8.87)% 13.31% 37.97% 13.94% 7.17% ======= ======== ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .......... $118,963 $130,380 $35,564 $13,481 $11,498 Ratio of expenses to average net assets(3) ......... 1.82%(4) 1.73% 1.67% 1.00% 1.00%(4) Ratio of expenses to average net assets without waivers and expense reimbursements, if any ...... 1.97%(4) 1.88% 2.14% 2.34% 2.59%(4) Ratio of net investment income/(loss) to average net assets(3) ................................... (0.14)%(4) (0.35)% 0.17% 1.35% 1.15%(4) Portfolio turnover rate ............................ 118.24% 275.73% 277.28% 256.28% 212.55% ----------- * Commencement of operations. (1) The amounts shown for a share outstanding throughout the respective periods are not in accord with the changes in the aggregate gains and losses on investments during the respective periods because of the timing of the sales and repurchases of fund shares in relation to fluctuating net asset values during the respective periods. (2) Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total investment returns are not annualized. (3) Reflects waivers and expense reimbursements, if any. (4) Annualized.
The accompanying notes are an integral part of the financial statements. 32 & 33 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP 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 fourteen investment portfolios, including the n/i NUMERIC INVESTORS FAMILY OF FUNDS ("n/i numeric investors Family") which consists of four diversified portfolios: n/i NUMERIC INVESTORS Emerging Growth Fund ("Emerging Growth Fund"), n/i NUMERIC INVESTORS Growth Fund ("Growth Fund"), n/i NUMERIC INVESTORS Mid Cap Fund ("Mid Cap Fund") and n/i NUMERIC INVESTORS Small Cap Value Fund ("Small Cap Value Fund") (each a "Fund," collectively the "Funds"). RBB has authorized capital of thirty billion shares of common stock of which 21.073 billion are currently classified into ninety-five classes of Common Stock. Each class represents an interest in an active or inactive RBB investment portfolio. The active classes have been grouped into seven separate "families," all of which have begun investment operations. USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. PORTFOLIO VALUATION -- The net asset value of each Fund is calculated as of the close of regular trading on the NYSE on each business day. Each Fund's securities are valued at the last reported sales price on the national securities exchange or national securities market on which such shares are primarily traded. If no sales are reported, and in the case of some securities traded over-the-counter, portfolio securities are valued at the mean between the last reported bid and asked prices. Securities for which market quotations are not readily available are valued at fair market value as determined in good faith by or under the direction of RBB's Board of Directors. With the approval of RBB's Board of Directors, each Fund may use a pricing service, bank or broker-dealer experienced in such matters to value its securities. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates market value. REPURCHASE AGREEMENTS -- Each Fund has agreed to purchase securities from financial institutions subject to the seller's agreement to repurchase them at an agreed-upon time and price ("repurchase agreements"). The financial institutions with whom each Fund enters into repurchase agreements are banks and broker/dealers, which Numeric Investors L.P.(R) (the Funds' "Adviser" or "Numeric") considers creditworthy. The seller under a repurchase agreement will be required to maintain the value of the securities as collateral, subject to the agreement at not less than the repurchase price plus accrued interest. Numeric marks to market daily the value of the collateral, and, if necessary, requires the seller to deposit additional collateral by the next business day, so that the value of the collateral is not less than the repurchase price. Default by or bankruptcy of the seller would, however, expose each Fund to possible loss because of adverse market action or delays in connection with the disposition of the underlying securities. 34 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- The Funds record security transactions based on trade date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes in determining realized gains and losses on investments. Interest income is accrued when earned. Dividend income is recorded on the ex-dividend date. Expenses incurred on behalf of a specific fund or fund family are charged directly to the fund or fund family (in proportion to net assets). Expenses incurred for all of the RBB families (such as director or professional fees) are charged to all funds in proportion to their net assets of the RBB Funds. Expenses and fees, including investment advisory and administration fees are accrued daily and taken into account for the purpose of determining the net asset value of the Funds. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income and from net realized capital gains, if any, will be declared and recorded on the ex-dividend date and paid at least annually to shareholders. Income and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences can include the treatment of non-taxable dividends, expiring capital loss carryforwards, foreign currency gain/loss, and losses deferred due to wash sales and excise tax regulations. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications within the composition of net assets. U.S. TAX STATUS -- No provision is made for U.S. income taxes as it is each Fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to its shareholders which will be sufficient to relieve it from U.S. federal income and all excise taxes. 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Numeric serves as each Fund's investment adviser. Numeric is entitled to a performance-based fee for its advisory services for the Growth, Mid Cap and Small Cap Value Funds calculated at the end of each month using a basic fee of 0.85% of average daily net assets and a performance fee adjustment based on each Fund's performance during the last rolling 12-month period. Each Fund's net performance is compared with the performance of its benchmark index during that same rolling 12-month period. When a Fund's performance is at least 5.00% better than its benchmark, it would pay Numeric more than the basic fee. If a Fund did not perform at least 4.00% better than its benchmark, Numeric would be paid less than the basic fee. Each 1.00% of the difference in performance between a Fund and its benchmark plus 4.00% during the performance period would result in a 0.10% adjustment to the basic fee. The maximum annualized performance adjustment rate would be + or - 0.50% of average daily net assets which would be added to or deducted from the basic fee. Numeric is entitled to receive 0.75% of the Emerging Growth Fund's average daily net assets, computed daily and payable monthly for its advisory services. 35 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Numeric has agreed that until December 31, 2003, it will waive its advisory fee and/or reimburse expenses (other than brokerage commissions, extraordinary items, interest and taxes) in an aggregate amount equal to the amount by which the Growth, Mid Cap and/or Small Cap Value Funds' total other expenses (other than investment advisory fees, expenses attributable to the Shareholder Services Plan, brokerage commissions, extraordinary items, interest and taxes) exceed 0.50% of such Fund's average daily net assets. Numeric has agreed that until December 31, 2003, it will limit the Emerging Growth Fund's total expenses to the extent that such expenses, other than expenses attributable to the Shareholder Services Plan, exceed 1.25% of average daily net assets. As necessary, these limitations were effected in waivers of advisory fees and reimbursements of expenses exceeding the advisory fee. For the six months ended February 28, 2003, investment advisory fees, waivers and reimbursements of expenses were as follows:
TOTAL NET EXPENSE FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT ---- ------------- -------- ------------- ------------- Emerging Growth Fund ............................... $356,340 $ (5,145) $351,195 -- Growth Fund ........................................ 214,568 (29,681) 184,887 -- Mid Cap Fund ....................................... 50,567 (44,270) 6,297 $3,604 Small Cap Value Fund ............................... 790,146 (678) 789,468 --
The Funds will not pay Numeric at a later time for any amounts it may waive or any amounts, which Numeric has assumed. PFPC Inc. ("PFPC"), a wholly-owned subsidiary of PFPC Worldwide, Inc. and an indirect wholly-owned subsidiary of The PNC Financial Services Group, and Bear Stearns Funds Management Inc. ("BSFM"), a wholly-owned subsidiary of The Bear Stearns Companies Inc., serve as co-administrators for each Fund. For providing administrative services PFPC is entitled to receive a monthly fee equal to an annual rate of 0.125% of each Fund's average daily net assets subject to a minimum monthly fee of $6,250 per Fund. BSFM is entitled to receive a monthly fee equal to an annual rate of 0.05% on the first $150 million and 0.02% of each Fund's average daily net assets thereafter. For the six months ended February 28, 2003, PFPC, at its discretion, voluntarily agreed to waive a portion of its administration fees. During such period, PFPC's co-administration fees and related waivers were as follows:
TOTAL PFPC PFPC NET PFPC FUND CO-ADMINISTRATION FEES WAIVERS CO-ADMINISTRATION FEES ---- ---------------------- -------- ---------------------- Emerging Growth Fund .................................... $64,034 $(10,690) $53,344 Growth Fund ............................................. 42,292 (2,500) 39,792 Mid Cap Fund ............................................ 41,099 (2,500) 38,599 Small Cap Value Fund .................................... 77,360 (13,169) 64,191
In addition, PFPC serves as each Fund's transfer and dividend disbursing agent. For the six months ended February 28, 2003, transfer agency fees were $29,919, $23,999, $23,999 and $30,364 for the Emerging Growth Fund, Growth Fund, Mid Cap Fund and Small Cap Value Fund, respectively. 36 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) PFPC Distributors, Inc. ("PFPC Distributors"), a wholly-owned subsidiary of PFPC Worldwide, Inc. and an indirect wholly-owned subsidiary of The PNC Financial Services Group, Inc., provides certain administrative services to each Fund. As compensation for such administrative services, PFPC Distributors received a monthly fee equal to an annual rate of 0.15% of each Fund's average daily net assets. For the six months ended February 28, 2003, PFPC Distributors, at its discretion, voluntarily agreed to waive a portion of its administrative services fees for each Fund. During such period, administrative services fees were as follows: TOTAL ADMINISTRATIVE NET ADMINISTRATIVE FUND SERVICES FEES WAIVERS SERVICES FEES ---- -------------- -------- ------------------ Emerging Growth Fund ........ $71,268 $(61,766) $ 9,502 Growth Fund ................. 24,424 (21,168) 3,256 Mid Cap Fund ................ 17,492 (15,160) 2,332 Small Cap Value Fund ........ 87,794 (76,088) 11,706 3. SHAREHOLDER SERVICES PLAN On January 22, 2003, the Board of Directors approved a Shareholder Services Plan which permits the Funds to pay fees to certain Shareholder Organizations of up to 0.25% of the average daily net assets of each Fund for which such Shareholder Organizations provide services for the benefit of customers. The Shareholder Services Plan will become effective March 1, 2003. 4. INVESTMENT IN SECURITIES For the six months ended February 28, 2003, aggregate purchases and sales of investment securities (excluding short-term investments) were as follows: FUND PURCHASES SALES ---- ------------ ------------ Emerging Growth Fund ....................... $ 91,411,575 $ 86,934,099 Growth Fund ................................ 30,594,605 31,143,296 Mid Cap Fund ............................... 23,176,361 23,935,347 Small Cap Value Fund ....................... 140,244,395 137,499,738 37 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 5. CAPITAL SHARE TRANSACTIONS As of February 28, 2003, each Fund has 50,000,000 shares of $0.001 par value capital stock authorized. Transactions in capital shares for the respective periods were as follows: EMERGING GROWTH FUND -------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2003 FISCAL YEAR ENDED (UNAUDITED) AUGUST 31, 2002 ---------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ------------ Sales ...................... 628,322 $ 7,280,909 1,337,023 $ 17,701,165 Repurchases ................ (204,755) (2,341,430) (2,706,477) (35,503,100) In-kind redemption ......... -- -- (1,423,289) (16,125,864) -------- ----------- ---------- ------------ Net increase/(decrease) .... 423,567 $ 4,939,479 (2,792,743) $(33,927,799) ======== =========== ========== ============ GROWTH FUND -------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2003 FISCAL YEAR ENDED (UNAUDITED) AUGUST 31, 2002 ---------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT ------- --------- -------- ----------- Sales ...................... 44,482 $ 390,777 296,000 $ 2,616,826 Repurchases ................ (91,483) (802,313) (356,125) (3,714,941) ------- --------- -------- ----------- Net decrease ............... (47,001) $(411,536) (60,125) $(1,098,115) ======= ========= ======== =========== MID CAP FUND -------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2003 FISCAL YEAR ENDED (UNAUDITED) AUGUST 31, 2002 ---------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT -------- ----------- -------- ----------- Sales ...................... 58,364 $ 667,192 480,281 $ 6,158,580 Repurchases ................ (120,529) (1,346,114) (766,504) (9,678,272) Reinvestments .............. 14,677 162,917 11,764 141,869 -------- ----------- -------- ----------- Net decrease ............... (47,488) $ (516,005) (274,459) $(3,377,823) ======== =========== ======== =========== 38 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) SMALL CAP VALUE FUND ------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2003 FISCAL YEAR ENDED (UNAUDITED) AUGUST 31, 2002 ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------ Sales ................ 2,782,121 $ 41,377,640 10,892,105 $187,038,373 Repurchases .......... (2,672,320) (38,859,723) (5,580,966) (96,476,291) Reinvestments ........ 676,705 9,480,631 402,382 5,705,768 ---------- ------------ ---------- ------------ Net increase ......... 786,506 $ 11,998,548 5,713,521 $ 96,267,850 ========== ============ ========== ============ Effective August 12, 2002, there is a 2.00% redemption fee on shares redeemed which have been held for less than one year on each of the Funds. For shares purchased prior to August 12, 2002, there was a 1.50% redemption fee on shares redeemed which have been held for less than one year on each of the Funds. For the six months ended February 28, 2003, these fees amounted to $11,345, $359, $5,031 and $344,827 for the Emerging Growth Fund, Growth Fund, Mid Cap Fund and Small Cap Value Fund, respectively. The redemption fees are collected and retained by each Fund for the benefit of the remaining shareholders and recorded as additional paid-in capital. 6. SECURITIES LENDING Loans of securities are required at all times to be secured by collateral equal to at least 100% of the market value of the securities on loan. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. In the event that the borrower fails to return securities, and collateral being maintained by the lender is insufficient to cover the value of loaned securities, the borrower is obligated to pay the amount of the shortfall (and interest thereon) to the Funds. However, there can be no assurance the Funds can recover this amount. The value of securities on loan to brokers and the related collateral received at February 28, 2003, were as follows: VALUE OF FUND SECURITIES ON LOAN VALUE OF COLLATERAL ---- ------------------ ------------------- Emerging Growth Fund ............ $10,260,041 $10,452,070 Growth Fund ..................... 1,467,893 1,494,179 Mid Cap Fund .................... 903,761 922,491 Small Cap Value Fund ............ 6,661,105 6,783,269 Collateral received from securities out on loan to broker/dealers is in the form of U.S. Treasury securities with any cash collateral received invested into repurchase agreements with Bear, Stearns & Co. Inc., which in turn are collateralized by various U.S. Treasury securities. The stated interest rate on repurchase agreements is net of rebate paid to the borrower on securities loaned. 39 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Collateral for repurchase agreements in connection with securities lending at February 28, 2003 are listed below:
EMERGING GROWTH FUND ---------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE ------ --------- ------------- -------- ------------ --------- ----------- Related Collateral: United States Treasury Note ...................... $810 5.250% 05/15/04 $848,345 $12,285 $860,630 GROWTH FUND ---------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE ------ --------- ------------- -------- ------------ --------- ----------- Related Collateral: United States Treasury Note ...................... $ 15 5.250% 05/15/04 $ 15,710 $ 227 $ 15,937 United States Treasury Bond ...................... 255 7.250 05/15/16 332,097 5,341 337,438 -------- ------- -------- $347,807 $ 5,568 $353,375 ======== ======= ======== MID CAP FUND ---------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE ------ --------- ------------- -------- ------------ --------- ----------- Related Collateral: United States Treasury Bond ...................... $ 65 7.250% 05/15/16 $ 84,652 $ 1,361 $ 86,013 SMALL CAP VALUE FUND ---------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE ------ --------- ------------- -------- ------------ --------- ----------- Related Collateral: United States Treasury Bond ...................... $430 7.250% 05/15/16 $560,006 $ 9,006 $569,012
40 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 7. COLLATERAL FOR REPURCHASE AGREEMENTS Listed below is the collateral associated with the repurchase agreements with Bear, Stearns & Co. Inc., outstanding at February 28, 2003:
EMERGING GROWTH FUND ---------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE ------ --------- ------------- -------- ------------ --------- ----------- United States Treasury Note ...................... $3,605 5.250% 05/15/04 $3,775,661 $54,675 $3,830,336 GROWTH FUND ---------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE ------ --------- ------------- -------- ------------ --------- ----------- United States Treasury Bond ...................... $ 865 7.250% 05/15/16 $1,126,524 $18,117 $1,144,641 MID CAP FUND ---------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE ------ --------- ------------- -------- ------------ --------- ----------- United States Treasury Bond ...................... $ 235 7.250% 05/15/16 $ 306,050 $ 4,922 $ 310,972 SMALL CAP VALUE FUND ---------------------------------------------------------------------------- PRINCIPAL AMOUNT ACCRUED ISSUER (000'S) INTEREST RATE MATURITY MARKET VALUE INTEREST TOTAL VALUE ------ --------- ------------- -------- ------------ --------- ----------- United States Treasury Bond ...................... $1,805 7.250% 05/15/16 $2,350,724 $37,804 $2,388,528
41 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 8. FEDERAL INCOME TAX INFORMATION At February 28, 2003, Federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by each Fund were as follows:
NET UNREALIZED FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION/ FUND COST APPRECIATION DEPRECIATION DEPRECIATION ---- ------------ ------------ ------------ -------------- Emerging Growth Fund ............................ $ 96,277,458 $7,752,178 $(5,740,065) $ 2,012,113 Growth Fund ..................................... 32,286,078 2,168,769 (2,674,767) (505,998) Mid Cap Fund .................................... 23,669,152 794,939 (2,222,913) (1,427,974) Small Cap Value Fund ............................ 122,821,539 4,907,286 (8,567,595) (3,660,309)
As of August 31, 2002, the components of distributable earnings on a tax basis were as follows: UNDISTRIBUTED UNDISTRIBUTED ORDINARY LONG-TERM FUND INCOME GAINS ---- ------------- ------------- Emerging Growth Fund ..................... -- -- Growth Fund .............................. -- -- Mid Cap Fund ............................. $ 167,268 -- Small Cap Value Fund ..................... 8,972,231 $1,102,604 At August 31, 2002, the Funds had capital loss carryforwards available to offset future capital gains through the indicated expiration dates: EXPIRING AUGUST 31, FUND 2009 2010 ---- ---------- ----------- Emerging Growth Fund .................... $2,130,088 $ 7,204,921 Growth Fund ............................. 1,057,047 13,200,351 Mid Cap Fund ............................ 506,551 5,467,943 Small Cap Value Fund .................... -- -- Under Federal tax law, capital losses realized after October 31 may be deferred and treated as having arisen on the first day of the following fiscal year. For the fiscal year ended August 31, 2002, the Growth Fund incurred and elected to defer post-October capital losses of $78,857. The differences between the book and tax basis components of distributable earnings relate principally to the timing of recognition of income and gains for U.S. federal income tax purposes. Short-term and foreign currency gains are reported as ordinary income for federal tax purposes. 42 (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] EMERGING GROWTH FUND GROWTH FUND MID CAP FUND SMALL CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) The tax character of dividends and distributions paid during this semi-annual period and the last two fiscal years was as follows: ORDINARY LONG-TERM FUND YEAR INCOME GAINS TOTAL ---- ---- ----------- ---------- ----------- Emerging Growth Fund 2003 -- -- -- 2002 -- -- -- 2001 $28,101,243 $1,335,389 $29,436,632 Growth Fund 2003 -- -- -- 2002 -- -- -- 2001 20,443,280 1,414,550 21,857,830 Mid Cap Fund 2003 167,268 -- 167,268 2002 145,129 -- 145,129 2001 7,191,628 -- 7,191,628 Small Cap Value Fund 2003 8,972,686 1,103,100 10,075,786 2002 4,929,706 909,019 5,838,725 2001 149,957 -- 149,957 43 [THIS PAGE INTENTIONALLY LEFT BLANK.] [THIS PAGE INTENTIONALLY LEFT BLANK.] [THIS PAGE INTENTIONALLY LEFT BLANK.] (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] One Memorial Drive Cambridge, MA 02142 1-800-numeric [686-3742] http://www.numeric.com INVESTMENT ADVISER Numeric Investors L.P.(R) One Memorial Drive Cambridge, MA 02142 CO-ADMINISTRATORS Bear Stearns Funds Management Inc. 383 Madison Avenue New York, NY 10179 PFPC Inc. Bellevue Corporate Center 400 Bellevue Parkway Wilmington, DE 19809 DISTRIBUTOR PFPC Distributors,Inc. 760 Moore Road King of Prussia, PA 19406 CUSTODIAN Custodial Trust Company 101 Carnegie Center Princeton, NJ 08540 TRANSFER AGENT PFPC Inc. Bellevue Corporate Center 400 Bellevue Parkway Wilmington, DE 19809 INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP Two Commerce Square Philadelphia, PA 19103 COUNSEL Drinker Biddle & Reath LLP One Logan Square 18th and Cherry Streets Philadelphia, PA 19103 The financial information included herein is taken from the records of each Fund without examination by independent accountants 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. (LOGO) n/i NUMERIC INVESTORS FAMILY OF FUNDS [GRAPHIC OMITTED] One Memorial Drive Cambridge, MA 02142 1-800-numeric [686-3742] http://www.numeric.com