-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, azs3P95DwE2v2+e8v9LOhRan9jmQz4HMt/9hsO0jEqRkrLes/rd5nq0gJNhYQLiY Yux8/wNEg+5Fsku+qW6ozA== 0000935069-95-000033.txt : 19950907 0000935069-95-000033.hdr.sgml : 19950907 ACCESSION NUMBER: 0000935069-95-000033 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950829 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARINER MUTUAL FUNDS TRUST CENTRAL INDEX KEY: 0000861106 STANDARD INDUSTRIAL CLASSIFICATION: 0000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06057 FILM NUMBER: 95568188 BUSINESS ADDRESS: STREET 1: 600 17TH STREET STREET 2: SUITE 1695 SOUTH CITY: DENVER STATE: CO ZIP: 80202 BUSINESS PHONE: 3036232577 MAIL ADDRESS: STREET 1: 600 17TH STREET STREET 2: SUITE 1605 SOUTH CITY: DENVER STATE: CO ZIP: 80202 N-30D 1 SEMI-ANNUAL REPORT FOR MARINER MUTUAL FUNDS TRUST MARINER MUTUAL FUNDS TRUST - - ------------------------------------------------------------------------------- SMALL CAP FUND HSBC Asset Management [Logo] - - ------------------------------------------------------------------------------- SEMI-ANNUAL REPORT (UNAUDITED) June 30, 1995 Managed by: HSBC ASSET MANAGEMENT AMERICAS INC. Sponsored and distributed by: MARINER FUNDS SERVICES MARINER MUTUAL FUNDS TRUST SMALL CAP FUND - - ------------------------------------------------------------------------------- HSBC Asset Management [Logo] - - ------------------------------------------------------------------------------- July 21, 1995 Dear Shareholder: After a lackluster year for small stocks in 1994, the first half of 1995 has been more profitable for investors. However, small-cap stocks continued to underperform larger-cap stocks. In the first half of 1995 the Russell 2000 returned 14.42%. This is compared to the 20.33% return for the S&P 500 Index and 20.33% for the Dow Jones Industrials. The NASDAQ Composite continued its outperformance with a 24.14% return. However, this Index is really not representative of small-cap stocks because it is influenced by some very large companies that dominate the largest 100 names in the Index. For example, Apple Computer, Microsoft, Intel and MCI Communications (all of which are in the NASDAQ Composite) would hardly be considered small companies. The best performing sectors of the small capitalization market (as defined and measured by the Russell 2000 Index) in the first half were technology (up 28.1%) and producer durables (up 20.2%). Financial services also made a good showing with a 15.9% return. Within the technology sector, the semiconductor industry was the standout leader. The worst performing sectors in the first half were real estate investment trusts (down 0.1%), autos and transportation (up 6.3%) and consumer discretionary (up 7.9%). The decline in interest rates and good earnings were the main reasons equities experienced positive returns in the first half. However, as was the case in 1994, a falling dollar and growing international economies resulted in quite a few positive earnings surprises among large multinational companies. This helped large-cap stocks (which tend to have a larger exposure to foreign economies) to outperform small-cap stocks in the first half. However, the market environment may be changing in the favor of small-cap stocks. First, it appears the dollar may be bottoming. If the dollar is bottoming or beginning to strengthen, this would be a positive for small-cap stocks. Secondly, with the domestic economy slowing, investors will be looking for companies that can continue to show good earnings growth in this type of environment. This hunt for growth may lead investors to look at small companies where above average growth is most likely to occur. Lastly, from a valuation standpoint, small-cap stocks continue to be attractive versus large-cap stocks. MANAGER'S DISCUSSION OF FUND PERFORMANCE: - - ------------------------------------------------------------------------------- For the six months ended June 30, 1995, the Mariner Small Cap Fund posted a positive return of 18.40%. This return was above its relevant benchmark, the Russell 2000 Index, return of 14.42%. The second quarter accounted for most of the outperformance, with the Fund recording a 14.37% positive return versus 9.37% for the Russell 2000 Index. During the first half of 1995, the Fund was positively influenced by the outperformance in the holdings in the technology and financial services sectors. Conversely, the Fund was hindered by the relative underperformance of the consumer sector. Currently the Mariner Small Cap Fund reflects several attractive characteristics. The Fund has a higher projected growth in earnings, a higher return on equity and a lower debt-to-capital than the general market. However, for these attractive characteristics the Fund is valued (in terms of its price earnings ratio) at a modest premium to the market. As always, we continue to value your participation and interest in the Mariner Small Cap Fund. Our objective is to strive to meet your expectations of a quality fund that will meet your financial goals. Sincerely, [GRAPHIC OMITTED] /s/W. Robert Alexander W. Robert Alexander PRESIDENT 2 COMPARISON OF CHANGES IN VALUE OF $10,000 INVESTMENT IN SMALL CAP FUND VS. RUSSELL 2000 INDEX Average Annual Total Return -------------------------------------- 1 Year Inception -------------------------------------- Offering Price(1) 27.17% 12.69% NAV(2) 33.81% 15.04% [GRAPHIC OMITTED] FUND(1) RUSSELL FUND (2) JAN 1993 10000 10000 10000 MAR 1993 9601 10426 10110 JUN 1993 10551 10653 11110 SEP 1993 11444 11585 12050 DEC 1993 11752 11889 12374 MAR 1994 11226 11574 11821 JUN 1994 10068 11122 10602 SEP 1994 11140 11894 11790 DEC 1994 11378 11673 11981 MAR 1995 11780 12211 12405 JUNE 1995 13473 13990 14187 Past performance is not predictive of future performance (1) Includes the maximum sales charge (2) Excludes the maximum sales charge The above illustration compares a $10,000 investment in the Small Cap Fund on January 4, 1993, to a $10,000 investment in the Russell 2000 Index on that date. All dividends and capital gain distributions are reinvested. The performance takes into account all applicable fees and expenses. The Russell 2000 Index is a widely accepted unmanaged index of overall market performance of many of the smallest publicly traded companies in the U.S. and does not take into account charges, fees and other expenses. 3 Board of Trustees JOHN P. PFANN* CHAIRMAN OF THE BOARD; Chairman and President, JPP Equities, Inc. WOLFE J. FRANKL* Former Director, North America, Berlin Economic Development Corporation WILLIAM L. KUFTA Chief Investment Officer, Beacon Trust Company ROBERT A. ROBINSON* Trustee, Henrietta and B. Frederick H. Bugher Foundation *Member of the Audit and Nominating Committees - - ------------------------------------------------------------------------------- OFFICERS W. ROBERT ALEXANDER PRESIDENT STEVEN R. HOWARD SECRETARY MARK A. POUGNET VICE PRESIDENT AND TREASURER
STATEMENT OF NET ASSETS AS OF JUNE 30, 1995 (UNAUDITED) SMALL CAP FUND NUMBER OF SHARES VALUE - - ------------ ------------ STOCKS-94.0% BEVERAGES-2.9% 15,900 * Canandaigua Wine Co., Inc. ........................ $ 711,525 ---------- BROADCAST MEDIA-1.6% 24,400 * International Family Entertainment Inc., Class B .. 384,300 ---------- COMMERCIAL SERVICES-8.7% 20,325 Paychex, Inc. ..................................... 736,781 16,750 Sensormatic Electronics Corp. ..................... 594,625 32,700 * Verifone, Inc. .................................... 779,100 ---------- 2,110,506 ---------- COMPUTER SOFTWARE-5.6% 25,800 * Emulex Corporation ................................ 622,425 27,400 * Network General Corp. ............................. 746,650 ---------- 1,369,075 ---------- COMPUTER SYSTEMS-9.0% 19,300 * Cisco System, Inc. ................................ 975,856 16,500 * Proxima Corp. ..................................... 393,937 29,600 * Xylogics, Inc. .................................... 821,400 ---------- 2,191,193 ---------- DATA PROCESSING-1.1% 32,100 * Envoy Corp. ....................................... 272,850 ---------- DEPARTMENT STORES-3.1% 25,000 * Proffitts, Inc. ................................... 743,750 ---------- ELECTRONICS-3.8% 22,900 Harman International Industries, Inc. ............. 927,450 ---------- FINANCE-CONSUMER LOANS-3.8% 26,050 The Money Store, Inc. ............................. 932,916 ---------- FINANCIAL SERVICES-6.0% 24,000 Advanta Corp., Class B ............................ 1,000,500 8,050 First Data Corp. .................................. 457,844 ---------- 1,458,344 ----------
5
STATEMENT OF NET ASSETS AS OF JUNE 30, 1995 (CONTINUED) SMALL CAP FUND NUMBER OF SHARES VALUE - - ------------ ------------ STOCKS-(CONTINUED) HEALTH CARE-DRUGS-2.4% 13,100 * Forest Laboratories, Inc., Class A $ 581,312 ----------- MACHINERY-5.2% 22,100 * Electroglas, Inc. ................. 1,265,225 ----------- MEDICAL SERVICES-2.2% 15,600 * Healthsource, Inc. ................ 546,000 ----------- OFFICE EQUIPMENT & SUPPLIES-5.3% 32,700 * Silicon Graphics, Inc. ............ 1,303,914 ----------- PERSONAL CARE PRODUCTS-1.0% 31,600 * Drypers Corp. ..................... 237,000 ----------- RECREATION AND ENTERTAINMENT-3.0% 20,700 * Movie Gallery, Inc. ............... 725,794 ----------- RESTAURANTS-3.8% 41,000 * Davco Restaurant .................. 533,000 30,700 * O Charley's, Inc. ................. 399,100 ----------- 932,100 ----------- RETAIL-SPECIALTY-10.1% 20,200 * Discount Auto Parts, Inc. ......... 512,575 35,675 * Office Depot, Inc. ................ 1,003,359 23,800 * Petco Animal Supplies ............. 553,350 28,100 * Rex Stores Corporation ............ 393,400 ----------- 2,462,684 ----------- TELECOMMUNICATION-EQUIPMENT-10.3% 19,000 * Cidco, Inc ........................ 596,125 12,300 U.S. Robotics, Inc. ............... 1,340,700 26,800 * Symmetricon, Inc. ................. 582,900 ----------- 2,519,725 ----------- WHOLESALE TRADE-5.1% 11,725 Cardinal Health Distribution ........ 554,006 20,700 Fisher Scientific International, Inc. 685,687 ----------- 1,239,693 ----------- Total Stocks (Cost-$15,309,161) ..... 22,915,356 -----------
6
STATEMENT OF NET ASSETS AS OF JUNE 30, 1995 (CONTINUED) SMALL CAP FUND PRINCIPAL AMOUNT VALUE - - ------------ ------------ SHORT-TERM INVESTMENTS-6.4% $ 768,000 Federated Prime Obligation, 5.970%, On Demand .. $ 768,000 798,000 Merrill Lynch & Co., 6.040%, On Demand .......... 798,000 ----------- Total Short-Term Investments (Cost $1,566,000) .. 1,566,000 ----------- TOTAL INVESTMENTS-100.4% (Cost-$16,875,161)** ......................... 24,481,356 ----------- OTHER ASSETS (LIABILITIES)-(0.4%) Cash ............................................ 575 Organizational costs, net ....................... 23,522 Dividends receivable ............................ 2,969 Due from affiliate .............................. 19,773 Other assets .................................... 1,658 Payable for capital stock redeemed .............. (125,723) Accrued expense ................................. (6,887) Due to affiliates ............................... (17,113) ----------- Liabilities in excess of other assets--net ...... (101,226) ----------- NET ASSETS-100 .................................. $24,380,130 =========== NET ASSET VALUE PER SHARE-applicable to 1,729,743 shares ($0.001 par value) outstanding ........... $14.09 ====== * Non-income producing security. ** Also cost for Federal income tax purposes. As of June 30, 1995, unrealized appreciation for Federal income tax purposes aggregated $7,606,195 of which $8,225,744 related to appreciated securities and $619,549 related to depreciated securities.
See Notes to Financial Statements. 7
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED) SMALL CAP FUND INVESTMENT INCOME: Income: Dividends ...................................... $ 46,857 ----------- Expenses: Advisory fees .................................. 82,592 Administrative services fee .................... 11,799 Audit fee ...................................... 11,783 Co-administrative and shareholder servicing fees 8,261 Distribution expenses .......................... 7,576 Legal fees ..................................... 7,273 Transfer agent fees ............................ 6,949 Amortization of organizational costs ........... 5,655 Printing ....................................... 3,386 Trustees' fees and expenses .................... 3,175 Custodian fee .................................. 894 Miscellaneous expenses ......................... 1,801 ----------- Total expenses ............................. 151,144 Less expense waivers/reimbursements ............ (3,496) ----------- Net expenses ............................... 147,648 ----------- Net investment loss ............................ (100,791) ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments ................... 1,364,643 Net change in unrealized appreciation on investments 2,780,127 ----------- Net gain on investments ............................ 4,144,770 ----------- Net increase in net assets resulting from operations $ 4,043,979 ===========
See Notes to Financial Statements. 8
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED) SMALL CAP FUND For the Six Months ended For the June 30, 1995 Year ended (Unaudited) December 31, 1994 --------------- ----------------- OPERATIONS: Net investment loss .................................................. $ (100,791) $ (147,610) Net realized gain (loss) on investments .............................. 1,364,643 (2,230,327) Net change in unrealized appreciation on investments ................. 2,780,127 1,830,241 ------------ ------------ Net increase (decrease) in net assets resulting from operations .... 4,043,979 (547,696) ------------ ------------ CAPITAL SHARE TRANSACTIONS: Proceeds from sales of 50,670 and 823,619 shares, respectively ....... 616,858 9,625,604 Net asset value of -0- and 225 shares, issued in reinvestment of distributions, respectively ....................................... -- 2,763 Payments for redemptions of 364,430 and 217,556 shares, respectively . (4,588,286) (2,431,794) ------------ ------------ Net increase(decrease) in net assets from capital share transactions (3,971,428) 7,196,573 ------------ ------------ Total increase in net assets ........................................... 72,551 6,648,877 ------------ ------------ NET ASSETS: Beginning of period .................................................. 24,307,579 17,658,702 ------------ ------------ End of period ........................................................ $ 24,380,130 $ 24,307,579 ============ ============
See Notes to Financial Statements. 9 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES Mariner Small Cap Fund (the "Fund") is an investment portfolio of Mariner Mutual Funds Trust (the "Trust"). The Trust is a Massachusetts business trust and is an open-end, diversified investment company with multiple investment portfolios, including the Fund. SECURITIES VALUATION: Investments in securities traded on an exchange are valued at the last quoted sales price for a given day, or if a sale is not reported for that day, at the mean between the most recent bid and asked prices. The bid price is used when no asked price is available. Securities for which no quotations are readily available are valued at fair value under procedures established by the Board of Trustees. Short-term obligations having a maturity of 60 days or less are valued at amortized cost which approximates market value. TAXES: It is the Fund's policy to comply with the provisions of the Internal Revenue Code, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income and net realized gains to its shareholders for each taxable year. Therefore, no provision is required for Federal income tax. The Fund has available a $2,230,327 capital loss carryforward which, if not utilized, will expire in the year 2002. DIVIDENDS AND DISTRIBUTIONS: The Fund intends to pay, as a semi-annual dividend, substantially all of its net investment income. Net capital gains, if any, are distributed at least annually. For the year ended December 31, 1994, the Fund reclassified $147,610 from accumulated net investment loss to paid-in capital. Net assets were not affected by this change. SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Security transactions are recorded on the trade date. Identified cost of investments sold is used for both financial statements and Federal income tax purposes. Dividend income is recorded on the ex-dividend date. Interest income is recorded as earned. EXPENSE ALLOCATION: Expenses directly attributed to each Fund in the Trust are charged to that Fund's operations; expenses which are applicable to all Funds are allocated among them. ORGANIZATIONAL COSTS: Costs incurred in connection with the organization of the Fund are being amortized on a straight-line basis over a five year period from the date operations commenced. 2. CAPITAL The Trust is authorized to issue an unlimited number of shares of beneficial interest each with a par value of $0.001. At June 30, 1995, the composition of net assets of the Fund was as follows: Paid-in capital ............................ $ 17,740,410 Net investment loss ........................ (100,791) Accumulated net realized loss on investments (865,684) Net unrealized appreciation on investments . 7,606,195 ------------ Total net assets ......................... $ 24,380,130 ============ 10 NOTES TO FINANCIAL STATEMENTS (CONTINUED) 3. PORTFOLIO SECURITIES The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended June 30, 1995 were approximately $3,085,000 and $5,112,000, respectively. 4. AGREEMENTS The Trust retains HSBC Asset Management Americas Inc. ("HSBC Americas") to act as Investment Adviser for the Fund. HSBC Americas is the North American investment affiliate of HSBC Holdings plc (Hong Kong and Shanghai Banking Corporation). As Investment Adviser, HSBC Americas furnishes investment guidance and policy direction in connection with the management of the portfolio of the Fund, subject to policies established by the Board of Trustees. As compensation for its services, HSBC Americas is paid monthly advisory fees at the following annual rates: Advisory Portion of the Fund's average daily net assets Fee Rate -------------------------------------------------------- -------- Not exceeding $400 million ............................. 0.700% In excess of $400 million but not exceeding $800 million 0.645% In excess of $800 million but not exceeding $1.2 billion 0.590% In excess of $1.2 billion but not exceeding $1.6 billion 0.535% In excess of $1.6 billion but not exceeding $2 billion . 0.480% In excess of $2 billion ................................ 0.415% HSBC Americas retains Investment Concepts, Inc. ("ICI") to serve as sub-adviser to the Fund. As sub-adviser, ICI provides micro-and macroeconomic research, advice and recommendations, and economic and statistical data, with respect to the Fund's investments, subject to the overall review by HSBC Americas and the Board of Trustees. ICI is a subsidiary of BancOklahoma Trust Company ("BOTC"). BOTC is a subsidiary of Bank of Oklahoma, N.A. ("BOK") which, in turn, is a subsidiary of BOK Corporation. As compensation for its services, HSBC Americas pays ICI a monthly fee at an annual rate not to exceed 0.50% of average daily net assets up to $400 million. The fee is reduced at several breakpoints for average daily net assets in excess of $400 million up to $2 billion, at which point it becomes 0.290% of the average daily net assets in excess of $2 billion. For the six months ended June 30, 1995, HSBC Americas earned approximately $82,600 in advisory fees, of which approximately $59,000 was paid to ICI. As Administrator, PFPC is paid a monthly asset based fee of 0.10% of the Fund's first $200 million of average net assets; 0.075% of the Fund's next $200 million of average net assets; 0.05% of the Fund's next $200 million of average net assets; and 0.03% of the Fund's average net assets in excess of $600 million; exclusive of out-of-pocket expenses. PFPC has agreed to waive 10% and 5% of its fee during the first and second year of its administration, respectively. For the six months ended June 30, 1995, PFPC earned approximately $10,600, net of waivers of approximately $1,200, in administrative services fees. 11 NOTES TO FINANCIAL STATEMENTS (CONTINUED) HSBC Americas may enter into agreements (the "Service Agreements") with certain banks, financial institutions and corporations ("Service Organizations") whereby each Service Organization handles recordkeeping and provides certain administrative services for its customers who invest in the Fund through accounts maintained at that Service Organization. Each Service Organization will receive monthly payments, which are based upon expenses that the Service Organization has incurred in the performance of its services under the Service Agreement. The payments from the Fund on an annual basis will not exceed 0.25% of the average value of Fund's shares held in the subaccounts of the Service Organizations. Marine Midland Bank, N.A. ("Marine Midland"), an affiliate of the Adviser, serves as custodian for the Fund. For furnishing custodian services, Marine Midland is paid a monthly fee with respect to the Fund for safekeeping its assets plus certain transaction charges and out-of-pocket expenses. For the six months ended June 30, 1995, HSBC Americas paid the Fund's entire custodian fee of approximately $900. HSBC Americas earned co-administration and shareholder servicing fees of 0.03% and 0.04% of the Fund's average net assets, respectively, totaling approximately $8,300. Of that total, HSBC Americas waived approximately $1,400 of these fees for the month of January 1995 . The Fund has adopted a Distribution Plan and Agreement (the "Plan") pursuant to Rule 12b-1 of the Investment Company Act of 1940, as amended. The Plan provides for a monthly payment by the Fund to Mariner Funds Services for expenses incurred in connection with distribution services provided to the Fund not to exceed an annual rate of 0.35% of the average daily value of the Fund's net assets during the preceding month. One state in which the shares of the Fund are qualified for sale imposes limitations on the expenses of the Fund. The Advisory Contract and the Administrative Services Contract with HSBC Americas provide that if, in any fiscal year, the total expenses of the Fund (excluding taxes, interest, distribution expenses, brokerage commissions and other portfolio transaction expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles and extraordinary expenses, but including the advisory and administrative services fees) exceed the expense limitation applicable to the Fund imposed by the securities regulations of such state, HSBC Americas will pay or reimburse the Fund in amounts equal to the excess. Although there is no certainty that this limitation will be in effect in the future, the effective limitation on an annual basis with respect to the Fund is currently 2.5% per annum of the first $30 million of average net assets, 2.0% of the next $70 million of average net assets and 1.5% of average net assets in excess of $100 million. For the six months ended June 30, 1995, there were no payments or reimbursements required as a result of this expense limitation. A partner of Baker & McKenzie, legal counsel to the Trust, serves as Secretary of the Trust. For the six months ended June 30, 1995, the Fund paid legal fees of approximately $9,300 to Fund counsel. 12
FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD SMALL CAP FUND For the Period For the January 4, 1993 Six Months ended For the (Commencement of June 30, 1995 Year ended Operations) to (Unaudited) December 31, 1994 December 31, 1993 ---------------- ----------------- ----------------- Net asset value, beginning of period .................. $ 11.90 $ 12.29 $ 10.00 ---------- ---------- ---------- Income from Investment Operations: Net investment loss .............................. (0.05) (0.07) (0.05) Net realized and unrealized gain (loss) on investments ................................. 2.24 (0.32) 2.42 ---------- ---------- ---------- Total from investment operations ................. 2.19 (0.39) 2.37 ---------- ---------- ---------- Less Distributions from: Net realized gain ................................ -- -- (0.08) ---------- ---------- ---------- Net asset value, end of period ........................ $ 14.09 $ 11.90 $ 12.29 ========== ========== ========== Total return (a) ...................................... 18.40%(c) (3.17%) 23.74%(c) Ratios/Supplemental Data Net assets (000), end of period .................. $ 24,380 $ 24,308 $ 17,659 Ratio of expenses (net of fee waivers ) to average net assets* .................................... 1.26%(b) 1.23% 1.12%(b) Ratio of net investment loss (net of fee waivers) to average net assets* ......................... (0.85%)(b) (0.68%) (0.51%)(b) Portfolio turnover rate .......................... 13.62%(c) 20.17% 5.96%(c) - - -------------- (a) Exclusive of sales charge. (b) Annualized. (c) Not annualized. * The ratios of net investment loss and expenses to average net assets for the six months ended June 30, 1995 reflect a decrease of 0.03% or $0.03 per share (1994--0.05% or $0.006) (1993--0.46% or $0.05) due to fee waivers.
See Notes to Financial Statements. 13 =============================================================================== MARINERSM MUTUAL FUNDS TRUST 370 17th Street, Suite 2700 Denver, Colorado 80202 GENERAL INFORMATION: (800) 753-4462 INVESTMENT ADVISER AND CO-ADMINISTRATOR HSBC Asset Management Americas Inc. 250 Park Avenue New York, New York 10177 SPONSOR AND DISTRIBUTOR MarinerSM Funds Services 370 17th Street, Suite 2700 Denver, Colorado 80202 ADMINISTRATOR, TRANSFER AND DIVIDEND DISBURSING AGENT PFPC, Inc. 400 Bellevue Parkway Wilmington, Delaware 19809 CUSTODIAN Marine Midland Bank, N.A. 140 Broadway New York, New York 10015 LEGAL COUNSEL Baker & McKenzie 805 Third Avenue New York, New York 10022 INDEPENDENT AUDITORS Ernst & Young LLP 787 Seventh Avenue New York, New York 10019 This report is for the information of the shareholders of Mariner Mutual Funds Trust. Its use in connection with any offering of the Trust's shares is authorized only in the case of a concurrent or prior delivery of the Trust's current prospectus. =============================================================================== -----END PRIVACY-ENHANCED MESSAGE-----