Charting Your Course.

HOW TO TRANSLATE LAST YEAR'S MARKET LESSONS INTO THIS YEAR'S PROFITS

HOW DID MUTUAL FUNDS DO IN 19997 IT DEPENDS WHO you ask. The year was marked by some marvelous highs: if you were in the Scudder 21st Century Growth Fund, for example, you reaped a 124.9% gain. But there were also some dreadful lows: if you held shares in the Scudder Small Co. Value Fund, you took it on the chin with a loss of 11.8%.

First, more of the good news. According to Chicago-based Morningstar Inc., the average domestic stock fund posted a 27.2% total return for 1999, which was the best year since 1995, when stock funds shot up 31.7%. But what a difference four years made. Back in 1995, the wealth was spread evenly. Among nine categories of diversified U.S. stock funds, every group gained at least 24% and none gained more than 37%.

Fast-forward to 1999. Morningstar's small growth category, which includes companies with median market capitalizations of less than $1 billion, returned an unprecedented 65.8%. (As the name suggests, the 374 funds in this class invest mainly in small companies expected to rapidly increase sales and earnings.) Midcap (meaning market caps between $1 billion and $5 billion) growth funds were just behind, returning 60.1%, while large growth funds (market caps of greater than $5 billion) returned a not-too-shabby 38.6%. As you can see, growth funds did just that: they grew, spectacularly.

Now for the less-than-rosy part of the picture. Value funds--those that attempt to buy stocks selling at low prices--trailed by a huge margin. Large, midcap, and small value funds returned only 6.6%, 6.7% and 4.9%, respectively.

SECTOR SNAPSHOT

Beyond growth and value funds, the news was similarly mixed. The average international stock fund gained 48.3% (led by Japanese stock funds, which were up 114%), by far the best showing of the decade. Both Pacific funds that exclude Japan and emerging-markets funds were up 72%, while European funds trailed, but still managed a solid 25% gain.

Closer to home, the best performance of all--no surprise here--was posted by funds specializing in technology stocks, which returned 135% for the year. Conversely, funds specializing in real estate and financial stocks lost money last year (-3.5% and -0.8%, respectively) while precious-metals funds returned a meager 4%. Long-term bond and intermediate-term bond funds also showed losses (-2.8% and -1.4%, respectively), in what was one of the worst years ever for the bond market.

What will the new millennium bring? Some experts expect a continuation of recent trends. "In terms of investing, the prospect that technology stocks will continue to lead the market is as sure a bet as you'll ever see," says Robert Markman, president of Edina, Minnesota-based Markman Capital Management. "That will mean continued strength in growth funds and lagging performance by value funds. Investors shouldn't be putting their money into funds that hold chemical companies and old-line manufacturers," traditionally the province of value funds.

On the other hand, Roger DeBard, managing director of Hotchkis & Wiley, a Los Angeles investment firm, urges investors not to abandon value funds. "Some growth stocks are fully priced or even overpriced," he says. "For our funds we're buying stocks whose earnings are growing at 13% per year yet they're selling at only 13 times earnings." Among DeBard's favorite industries are electric utilities and financial services.

Some experts are also upbeat about investing in foreign companies, considering last year's strong showing. "International investing has more upside and less downside than the U.S. stock market now," says Jonathan Pond, a financial planner in Watertown, Massachusetts, and author of Your Money Matters: 21 Tips to Achieve Financial Security in the 21st Century (Putnam Publishing Group, $22.95). "Investors should have 10% to 15% of their equity portfolios in international stocks--more in some cases--because there are excellent opportunities overseas."

Mutual fund investing outside the U.S. falls into two categories: international funds, which hold only foreign stocks, and global funds, which may hold U.S. stocks as well. "I usually prefer international funds because they offer's pure play on foreign stocks," says Pond. "However, one of my favorite international funds, Janus Overseas, is closed to new investors; Janus Worldwide, a global fund with the same manager, is open, so I suggest the latter fund to clients." Among international funds, Pond recommends Fidelity Diversified International, T. Rowe Price International and Scudder International.

What about bonds? For 2000, DeBard favors bond funds, including long-term Treasuries and corporate bonds. "As the federal budget surplus increases," he says, "the federal government will be borrowing less money and thus issuing fewer bonds. When the supply of Treasury bonds decreases, demand for those fewer bonds is likely to increase, driving up prices." The variable here, of course, is the direction of interest rates. Should the Fed ratchet them up further in 2000, long-term T-bond yields could be made unattractive to investors, and their prices could plunge.

So what investing strategy will best position you for what 2000 may bring? The safe answer is diversification, which will help you cover all the bases so you'll participate in the next market rally. For example, if we see a repeat of 1992, 1996 or 1997, three years in which small value funds led the way (with returns of 19.5%, 24.9% and 29.7%, respectively), you'll be happy to have some coverage there; an exposure to foreign stocks will help if this year resembles 1993, when international stock funds (up 42.6%) drubbed domestic stock funds (which returned 13.6%).

Whatever the investment climate brings this year, if you have a balanced portfolio you'll benefit from whichever sector leads the market. Read on for ways to chart your mutual fund course, no matter how old you are, how much you have to invest or how choppy the market waters get.

GETTING IN WITH INDEX FUNDS

Dr. Iris Mabry, who just started a three-year pediatric fellowship at Johns Hopkins Hospital in Baltimore, doesn't have a bundle to put in the market. She's just launching her career and is concerned about repaying her education debt, yet she would also like to start investing.

"I'm always interested in pieces that discuss financial makeovers for physicians, so I had a financial makeover done for me through Medical Economics magazine," says Mabry, 30. "A lot of them focus on what doctors making six figures a year should do with their money, but I wanted to know what residents and fellows making $30,000 a year should do."

Mabry's first step was to stash an emergency fund equal to four months' worth of living expenses in a money market account. This month, she'll begin funding an IRA, "just to get into the habit of investing and to learn about the process. I'm interested in mutual funds because I don't think I'm going to have a lot of time to spend picking [individual securities]." Aside from paying off her medical school debt, she wants to beef up her emergency fund and begin building a retirement nest egg.

The financial planner that did Mabry's make over, Chris Parr of Columbia, Maryland, says that she definitely should focus on stock funds to get started. "Young people have many years to build up their portfolio," says Parr. "Over the long term, stocks proved to be excellent investments throughout the 20th century, and that probably will be the case for the 21st century, too." In fact, over the past 20 years, the average annual return for the S&P 500-stock index was 17.99%.

For Mabry, Parr recommends an index fund that tracks the broad stock market. Index funds have low expense ratios (that is, management fees eat up a smaller portion of your return than those of actively managed funds, usually a difference of more than 1%) because the manager merely tries to match a certain index; no stock-picking efforts are required. These funds also assure investors of participating in major market moves.

"Among the funds I'd suggest for her is the Vanguard Total Stock Market Index Fund," Parr says. This fund holds thousands of stocks in an attempt to match the Wilshire 5000 Index, one of the broadest measures of the U.S. equity market. Recently, about 20% of the fund's holdings were in technology stocks, while sizable amounts were in communications and bank stocks. Thus, investors will be in a position to profit whether stocks continue to surge or if interest rates fall and bank stocks bounce back.

According to Parr, novice investors with $10,000 to invest might want to put their first $8,000 or so into this type of core fund. "Next," he says, "I'd put $2,000 into an international fund because there are some excellent companies outside the U.S."

While an index fund may be appropriate for a beginner such as Mabry, such funds aren't only for novices--they can be one pillar of a well-allocated portfolio. Index funds have performed well (Vanguard 500 Index Fund, for example, has returned over 18% per year for the past 10 years), attracting approval from sophisticated analysts. "We recommend a 50-50 split between domestic index and domestic actively managed funds," says Sheldon Jacobs, publisher and editor-in-chief of The No-Load Fund Investor, published in Irvington-on-Hudson, New York. "Transaction costs are lower in index funds. Over time, lower costs are likely to produce higher returns."

Such a mix of index funds and actively managed funds may be especially appropriate if you're an employer responsible for crafting a company savings plan. "We sponsor a 401(k) plan for our employees," says Joseph A. Williams, 60, president of Target Group, a human resources consulting firm in Chicago. "When we selected funds for employees to choose from, we emphasized conservative funds likely to produce long-term growth." Selections here include Vanguard 500 Index Fund, which tracks the S&P 500, and T. Rowe Price International Stock Fund, which has performed very well over the past 15 years.

DIVERSIFY, PART ONE: GROWTH VS. VALUE

After investors have bought shares in domestic and large core international funds, they can add actively managed funds to their portfolios, according to Parr. "I prefer funds that have had the same manager or managers for a lengthy time period," he says. "I also like to see funds that have performed well within their category. It's not fair to compare a small-cap value fund to a large-cap growth fund, but some small-cap value funds have done better than others."

As your portfolio grows, Parr says, more funds can be added, keeping the emphasis on stock funds for long-term growth. "You don't need many funds, no more than six to eight altogether. Try for a mix of growth and value funds because you don't know which style will be in favor in any given year." Case in point: while growth funds clobbered value funds in 1998 and 1999, in 1997, large value funds outperformed large growth funds 26.8% to 25.6%, according to Morningstar.

For the growth side of an investor's portfolio, among the funds Parr recommends to clients is Vanguard U.S. Growth Fund, which specializes in large U.S. companies. "It's not flashy but it has been consistent." Indeed, the fund had only one down year in the 1990s (it lost 1.45% in 1993) and returned more than 22% in seven out of the last 11 years. On the value side, Parr says that Weitz Partners Value Fund "has consistently topped its peers." According to Morningstar, it ranks among the top 6% of all funds for three-, five-, 10-, and 15-year returns. (Although this fund has an official minimum investment of $100,000, it is available through several mutual fund "supermarkets"--including Fidelity, Schwab, and Waterhouse--for as little as $2,000.)

Brian Korb, a financial planner with LifePlan Financial Group in Dayton, Ohio, is such a believer in a balance between growth and value funds that he has been advising clients to move from leading market sectors to laggards, a strategy he'll continue in 2000. "We're cutting back on large growth funds, which have gained," he says, "and putting some of that money into small value funds, which have struggled. Although rebalancing into small value stocks didn't help in 1999, we did benefit by increasing our commitment to small growth stocks, international stocks and natural resources, all of which did very well in 1999."

Why is Korb so willing to pursue a contrarian strategy? "I'm not ready to change direction because of what has happened in the last two years," he says. "If you go back 20 years, you'll see that no asset class has excelled more than five years in a row. During those 20 years, in fact, small value stocks and international stocks had as many top years as large growth stocks. Even in 1998 and 1999, small growth funds went from near the bottom to one of the top-performing asset classes."

DIVERSIFY, PART TWO: SIZE MATTERS

In addition to a balance between growth and value funds, seasoned investors may also want to own funds that hold companies of various sizes. For both his company's and his own portfolio, "I like small-cap stocks," says Joseph Williams, "and I especially like Ariel funds, led by John Rogers and a strong management team. Good management is the key to any mutual fund." Although Ariel Fund (which emphasizes small-cap stocks) and Ariel Appreciation Fund (which emphasizes midcaps) lagged in 1999 with -3.79% and -5.76% returns, respectively, they enjoyed excellent years in 1997 and 1998 and thus sport impressive three-year records of 16.63% and 12.21%.

Joseph Williams says he is also allocating fewer assets to international funds these days and more to domestic funds. "The U.S. market is the most attractive now, and you can't ignore the increasing importance of technology," he says. "Those stocks can be volatile, though, so it makes sense to reduce your risks by investing through a diversified mutual fund."

Joseph Williams' financial planner, Sidney Blum of Northbrook, Illinois, advises a large dose of large-cap stocks for investors' portfolios. "Most investors want to own brandname companies," he says, "so those stocks probably will be the leaders."

However, you should include some small-cap funds too. Ariel Fund is a good choice; so are Baron Asset Fund and Fremont U.S. Micro-Cap Fund. Baron Asset had disappointing returns in late 1999, but the fund has a three-year annualized return of 15.97% and a five-year annualized return of 21.42%. Fremont U.S. Micro-Cap, as the name suggests, buys extremely small companies. It's not for the fainthearted, posting ups (54% and 49% in 1995 and 1996), followed by downs (gains of only 7% and 3% in 1997 and 1998), and then way up (gaining 130% in 1999).

Aggressive investors also may want to have a small portion of their portfolio in a specialized Internet fund. Blum says that he advises a few select clients to invest in Munder NetNet Fund, which holds established tech companies (Cisco Systems, MCI WorldCom, Intel) as well as speculative newcomers. The fund's 1998 performance, a return of 97.9%, was a tough act to follow, but it managed--gaining 175.7% in 1999. However, if interest rates rise in 2000, investors will be taking a closer look at the books of highly leveraged tech companies and may not be so free with their shareholder dollars.

REBALANCING FOR RETIREMENT

An emphasis on stocks and stock funds may be fine for younger investors, but what about those in or near retirement? Conventional wisdom states that retirees should shift toward income-producing funds, yet that's not always the best strategy, especially for those who retire early. "I retired from my job as a municipal employee when I was only 51," says Willie Williams, 56, of Lynwood, California. "Yes, I wanted safety and income, but I also wanted growth, because I expect to need that income over many years. Therefore, when I rolled my retirement plan into an IRA, I invested more heavily in stock funds, including those offered by American and Putnam."

Willie Williams had another concern too: he needed to tap his retirement plan for income but he didn't want to pay a 10% penalty for withdrawing the money before age 591/2. Thus, he turned to his financial planner, Andrew Burleigh of Gardena, California-based Financial Network Investment Corp. (FNIC). Burleigh established a plan for Williams in accordance with IRS regulation 72(t), by which a person under 59 1/2 years of age can withdraw funds from a qualified plan--including IRAs--without incurring a penalty as long as the withdrawals occur for at least five years or until age 59 1/2, whichever is longer. "We brought in an actuary to sign off on the plan," Burleigh says. "Withdrawals have to continue for at least five years, or until age 59 1/2, whichever comes later."

Among mutual funds, Burleigh says even retirees should consider stock funds rather than bond funds, depending on their needs. "Retirees can expect to live for many years, and living costs will increase over those years. Stock funds are more likely than bond funds to generate the necessary returns."

Among stock funds, Burleigh prefers diversified domestic funds to foreign funds or funds that specialize in particular sectors. "I often recommend American funds to my clients, and that includes retirees such as Willie Williams. Some American funds, such as American Mutual, Investment Co. of America and Washington Mutual, have outstanding records that go back 40 years or more."

Burleigh is particularly impressed that American funds are all team-managed, some by as many as eight "portfolio counselors." "That provides different investment perspectives and diversification within each fund. What's more, if one manager leaves the company, the others are still in place, so the fund has continuity."

The catch, at least for now, is that American funds generally follow the value style of investing that has been out of favor in recent years. For example, the $55 billion Washington Mutual Fund returned only 1.2% last year, far behind its outstanding 17% return over the past 15 years, while American Mutual Fund (over $10 billion in assets) showed a loss of-0.12% for the year. To remedy potential value downswings, "Putnam Funds make a good complement," says Burleigh. "They tend to be a bit more aggressive, with a greater emphasis on growth funds, so they make good holdings when growth is favored over value."

BOND BELIEVERS

With so much emphasis on stock funds, as well as anxiety over interest rates, does anyone have a kind word for bond funds?

Many investors, of course, will prefer tax-exempt municipal bonds to taxable Treasuries or corporate bonds. "Municipal bonds usually make sense for almost any investor who is in a 28% federal tax bracket or higher, because they offer a higher after-tax yield than Treasury bonds," says Louis Stanasolovich, a financial planner in Pittsburgh. "Recently, municipal bonds offered yields that were 93% of those on 30-year Treasury bonds." That is, if Treasuries are yielding 6.5%, which might translate to a 4.5% after-tax return, you'd be better off earning 6% with tax-exempt municipal bonds.

To help you round out your portfolio, we've included top long-term bond funds (taxable and tax-exempt) on the accompanying honor roll, as well as balanced funds (hybrids) that include both bonds and stocks. Don't get carried away with bond funds, though. The bull market that has stampeded through the 1980s and 1990s shows no signs of ending, so you'll need a healthy portion of stock funds to keep your portfolio headed in the right direction--up.

MUTUAL FUND OVERVIEW

B.E's Top Mutual Fund Performers

CATEGORY                  FUND NAME

Large Growth              ProFunds UltraOTC Inv
                          Berkshire Focus
                          Reserve Informed Investors Growth R
                          Potomac OTC Plus
                          IPS Millennium

Mid-Cap Growth            Nevis Fund
                          Strong Enterprise
                          IPS New Frontier
                          PBHG Select Equity
                          Berger Mid Cap Growth

Small Growth              Van Wagoner Post-Venture
                          BlackRock Micro-Cap Equity Class A
                          Van Wagoner Micro-Cap
                          RS Emerging Growth
                          RS Diversified Growth

Large Blend               Boyle Marathon
                          Trent Equity
                          Value Trend Large Cap
                          Warburg Pincus Capital Apprec Comm
                          Value Trend Links

Mid-Cap Blend             Amana Growth
                          Quaker Aggressive Growth
                          Gintel
                          T.O. Richardson Sector Rotation
                          Invesco Leisure

Small Blend               Van Wagoner Emerging Growth
                          Schroder Micro Cap Inv
                          Midas Magic
                          FMI Focus
                          Bridgeway Micro-Cap Limited

Large Value               Alpha Analytics Value Funds
                          Excelsior Value & Restructuring
                          AIM Basic Value Class A
                          ICAP Select Equity
                          Legg Mason Value Trust Primary

Mid-Cap Value             Atlas Strategic Growth A
                          Matrix/LMH Value
                          Strong Opportunity
                          Meyers Pride Value
                          Dreyfus Midcap Value

Small Value               Al Frank
                          ICM/Isabelle Small Cap Value Invmt
                          Royce Trust & GiftShares Inv
                          Bridgeway Ultra-Small Company
                          Gabelli Westwood Mighty Mites Ret

Balanced                  Green Century Balanced
                          Berger Balanced
                          Markman Moderate Allocation
                          Monetta Balanced
                          Leonetti Balanced

Foreign Stock             Warburg Pincus Intl Small Company
                          T. Rowe Price International Discovery
                          BlackRock Intl Small Cap Eq Svc
                          Strong Overseas
                          William Blair International Growth N

World Stock               Warburg Pincus Global Post-Vent Comm
                          American Century Global Growth Inv
                          Gabelli Global Opportunity
                          Citizens Global Equity
                          Kemper Global Discovery S

U.S. Government Bond      Galaxy II U.S. Treasury Index Retail
                          Chase U.S. Government Secs Inv
                          Pauze U.S. Govt Total Ret Bond NoLoad
                          Wright U.S. Treasury
                          California Investment U.S. Govt Secs

National Municipal Bond   IAA Trust Tax-Exempt Bond
                          Scudder Managed Municipal Bonds
                          American Century High-Yield Muni Inv
                          AARP Insured Tax-Free General Bond
                          Scudder High-Yield Tax-Free

                                                 1-YEAR
FUND NAME                               TICKER   TOTAL RETURN

ProFunds UltraOTC Inv                   UOPIX          233.25%
Berkshire Focus                         BFOCX          142.90
Reserve Informed Investors Growth R     RIGAX          129.86
Potomac OTC Plus                        POTCX          129.41
IPS Millennium                          IPSMX          118.80

Nevis Fund                              NEVIX          286.53
Strong Enterprise                       SENTX          187.84
IPS New Frontier                        IPSFX          182.09
PBHG Select Equity                      PBHEX          164.68
Berger Mid Cap Growth                   BEMGX          151.46

Van Wagoner Post-Venture                VWPVX          237.22
BlackRock Micro-Cap Equity Class A      BMEAX          220.64
Van Wagoner Micro-Cap                   VWMCX          207.88
RS Emerging Growth                      RSEGX          182.51
RS Diversified Growth                   RSDGX          149.97

Boyle Marathon                          BFUNX           78.21
Trent Equity                            TREFX           72.61
Value Trend Large Cap                   (**)            52.80
Warburg Pincus Capital Apprec Comm      CUCAX           48.25
Value Trend Links                       (**)            47.20

Amana Growth                            AMAGX           99.88
Quaker Aggressive Growth                QUAGX           96.89
Gintel                                  GINLX           81.52
T.O. Richardson Sector Rotation         TRSRX           65.80
Invesco Leisure                         FLISX           65.59

Van Wagoner Emerging Growth             VWEGX          291.15
Schroder Micro Cap Inv                  SMCFX           94.92
Midas Magic                             MIMGX           70.58
FMI Focus                               FMIOX           54.11
Bridgeway Micro-Cap Limited             BRMCX           49.55

Alpha Analytics Value Funds             (**)            46.73
Excelsior Value & Restructuring         UMBIX           41.98
AIM Basic Value Class A                 GTVLX           33.92
ICAP Select Equity                      ICSLX           27.17
Legg Mason Value Trust Primary          LMVTX           26.71

Atlas Strategic Growth A                ASGAX           40.12
Matrix/LMH Value                        LMHFX           33.43
Strong Opportunity                      SOPFX           33.39
Meyers Pride Value                      MYPVX           28.34
Dreyfus Midcap Value                    DMCVX           28.06

Al Frank                                VALUX           60.42
ICM/Isabelle Small Cap Value Invmt      IZZYX           49.49
Royce Trust & GiftShares Inv            RGFAX           41.75
Bridgeway Ultra-Small Company           BRUSX           40.41
Gabelli Westwood Mighty Mites Ret       WEMMX           36.45

Green Century Balanced                  GCBLX           76.39
Berger Balanced                         BEBAX           44.58
Markman Moderate Allocation             MMMGX           36.14
Monetta Balanced                        MBALX           29.60
Leonetti Balanced                       LEONX           26.02

Warburg Pincus Intl Small Company       WINSX          216.42
T. Rowe Price International Discovery   PRIDX          155.03
BlackRock Intl Small Cap Eq Svc         BRESX          150.50
Strong Overseas                         SOVRX           96.27
William Blair International Growth N    WBIGX           96.25

Warburg Pincus Global Post-Vent Comm    WVCCX          140.97
American Century Global Growth Inv      TWGGX           86.09
Gabelli Global Opportunity              GABOX           79.21
Citizens Global Equity                  WAGEX           74.09
Kemper Global Discovery S               KGDAX           64.61

Galaxy II U.S. Treasury Index Retail    IUTIX           -2.49
Chase U.S. Government Secs Inv          14066           -2.79
Pauze U.S. Govt Total Ret Bond NoLoad   PGTRX           -4.21
Wright U.S. Treasury                    WGOBX           -4.39
California Investment U.S. Govt Secs    CAUSX           -4.94

IAA Trust Tax-Exempt Bond               IAEBX           -1.59
Scudder Managed Municipal Bonds         SCMBX           -1.96
American Century High-Yield Muni Inv    ABHYX           -2.01
AARP Insured Tax-Free General Bond      AITGX           -2.03
Scudder High-Yield Tax-Free             SHYTX           -2.23

                                         AVG. ANNUALIZED
                                           TOTAL RETURN
FUND NAME                                3-YEAR   5-YEAR

ProFunds UltraOTC Inv                    N/A%      N/A%
Berkshire Focus                           N/A       N/A
Reserve Informed Investors Growth R      51.43     35.61
Potomac OTC Plus                          N/A       N/A
IPS Millennium                           55.05      N/A

Nevis Fund                                N/A       N/A
Strong Enterprise                         N/A       N/A
IPS New Frontier                          N/A       N/A
PBHG Select Equity                       49.86      N/A
Berger Mid Cap Growth                     N/A       N/A

Van Wagoner Post-Venture                 59.71      N/A
BlackRock Micro-Cap Equity Class A        N/A       N/A
Van Wagoner Micro-Cap                    40.85      N/A
RS Emerging Growth                       62.45     44.36
RS Diversified Growth                    55.64      N/A

Boyle Marathon                            N/A       N/A
Trent Equity                             36.56     28.50
Value Trend Large Cap                     N/A       N/A
Warburg Pincus Capital Apprec Comm       34.80     33.06
Value Trend Links                         N/A       N/A

Amana Growth                             40.15     31.12
Quaker Aggressive Growth                 45.30      N/A
Gintel                                   27.83     29.09
T.O. Richardson Sector Rotation           N/A       N/A
Invesco Leisure                          39.55     27.97

Van Wagoner Emerging Growth              50.05      N/A
Schroder Micro Cap Inv                    N/A       N/A
Midas Magic                              15.03     19.13
FMI Focus                                52.46      N/A
Bridgeway Micro-Cap Limited               N/A       N/A

Alpha Analytics Value Funds               N/A       N/A
Excelsior Value & Restructuring          27.90     29.43
AIM Basic Value Class A                  22.02      N/A
ICAP Select Equity                        N/A       N/A
Legg Mason Value Trust Primary           36.99     38.03

Atlas Strategic Growth A                 25.52     25.87
Matrix/LMH Value                         17.40     18.74
Strong Opportunity                       23.89     23.38
Meyers Pride Value                       21.08      N/A
Dreyfus Midcap Value                     16.23      N/A

Al Frank                                  N/A       N/A
ICM/Isabelle Small Cap Value Invmt        N/A       N/A
Royce Trust & GiftShares Inv             28.75      N/A
Bridgeway Ultra-Small Company            18.96     25.03
Gabelli Westwood Mighty Mites Ret         N/A       N/A

Green Century Balanced                   23.61     22.78
Berger Balanced                           N/A       N/A
Markman Moderate Allocation              24.36      N/A
Monetta Balanced                         19.67      N/A
Leonetti Balanced                        24.76      N/A

Warburg Pincus Intl Small Company         N/A       N/A
T. Rowe Price International Discovery    36.67     22.69
BlackRock Intl Small Cap Eq Svc           N/A       N/A
Strong Overseas                           N/A       N/A
William Blair International Growth N     33.35     22.88

Warburg Pincus Global Post-Vent Comm     46.27      N/A
American Century Global Growth Inv        N/A       N/A
Gabelli Global Opportunity                N/A       N/A
Citizens Global Equity                   40.29     28.86
Kemper Global Discovery S                28.20     24.70

Galaxy II U.S. Treasury Index Retail      5.36      7.13
Chase U.S. Government Secs Inv            N/A       N/A
Pauze U.S. Govt Total Ret Bond NoLoad     3.34      4.94
Wright U.S. Treasury                      4.67      7.74
California Investment U.S. Govt Secs      5.22      7.42

IAA Trust Tax-Exempt Bond                 4.34      6.27
Scudder Managed Municipal Bonds           4.41      6.78
American Century High-Yield Muni Inv      N/A       N/A
AARP Insured Tax-Free General Bond        4.00      6.26
Scudder High-Yield Tax-Free               5.23      7.73

                                                        MIN. INIT.
FUND NAME                                 PHONE            INVEST.

ProFunds UltraOTC Inv                    888-776-3637       15,000
Berkshire Focus                          877-526-0707        5,000
Reserve Informed Investors Growth R      800-637-1700        1,000
Potomac OTC Plus                         800-851-0511       10,000
IPS Millennium                           800-232-9142        1,000

Nevis Fund                               877-446-3847       10,000
Strong Enterprise                        800-368-1030        2,500
IPS New Frontier                         800-232-9142        1,000
PBHG Select Equity                       800-433-0051        2,500
Berger Mid Cap Growth                    800-333-1001        2,000

Van Wagoner Post-Venture                 800-228-2121        1,000
BlackRock Micro-Cap Equity Class A       888-825-2257        5,000
Van Wagoner Micro-Cap                    800-228-2121   1,000(***)
RS Emerging Growth                       800-766-3863        5,000
RS Diversified Growth                    800-766-3863        5,000

Boyle Marathon                           415-693-0800          500
Trent Equity                             336-282-9302        1,000
Value Trend Large Cap                    800-590-0898        1,000
Warburg Pincus Capital Apprec Comm       800-927-2874        2,500
Value Trend Links                        800-590-0898        1,000

Amana Growth                             800-728-8762          100
Quaker Aggressive Growth                 800-220-8888       10,000
Gintel                                   800-243-5808        5,000
T.O. Richardson Sector Rotation          800-643-7477        5,000
Invesco Leisure                          800-525-8085        1,000

Van Wagoner Emerging Growth              800-228-2121   1,000(***)
Schroder Micro Cap Inv                   800-344-8332   10,000(***)
Midas Magic                              800-400-6432        1,000
FMI Focus                                800-811-5311        1,000
Bridgeway Micro-Cap Limited              800-661-3550        2,000

Alpha Analytics Value Funds              877-257-4240        5,000
Excelsior Value & Restructuring          800-446-1012          500
AIM Basic Value Class A                  800-347-4246          500
ICAP Select Equity                       888-221-4227       10,000
Legg Mason Value Trust Primary           800-577-8589        1,000

Atlas Strategic Growth A                 800-933-2852        2,500
Matrix/LMH Value                         800-366-6223        1,000
Strong Opportunity                       800-368-1030          250
Meyers Pride Value                       800-410-3337        1,000
Dreyfus Midcap Value                     800-373-9387        2,500

Al Frank                                 888-263-6443        5,000
ICM/Isabelle Small Cap Value Invmt       800-472-6114        1,000
Royce Trust & GiftShares Inv             800-221-4268        2,500
Bridgeway Ultra-Small Company            800-661-3550        2,000
Gabelli Westwood Mighty Mites Ret        800-937-8966        1,000

Green Century Balanced                   800-934-7336        2,000
Berger Balanced                          800-333-1001        2,000
Markman Moderate Allocation              800-707-2771       25,000
Monetta Balanced                         800-666-3882          250
Leonetti Balanced                        800-282-2340          100

Warburg Pincus Intl Small Company        800-927-2874        2,500
T. Rowe Price International Discovery    800-638-5660        2,500
BlackRock Intl Small Cap Eq Svc          800-441-7762        5,000
Strong Overseas                          800-368-3863        2,500
William Blair International Growth N     800-742-7272        5,000

Warburg Pincus Global Post-Vent Comm     800-927-2874        2,500
American Century Global Growth Inv       800-345-3533        2,500
Gabelli Global Opportunity               800-422-3554        1,000
Citizens Global Equity                   800-223-7010        2,500
Kemper Global Discovery S                800-621-1048        1,000

Galaxy II U.S. Treasury Index Retail     800-628-0414        2,500
Chase U.S. Government Secs Inv           888-524-2730        2,500
Pauze U.S. Govt Total Ret Bond NoLoad    800-327-7170       25,000
Wright U.S. Treasury                     800-888-9471        1,000
California Investment U.S. Govt Secs     800-225-8778       10,000

IAA Trust Tax-Exempt Bond                309-557-3222        1,000
Scudder Managed Municipal Bonds          800-225-2470        2,500
American Century High-Yield Muni Inv     800-345-2021        5,000
AARP Insured Tax-Free General Bond       800-322-2282        2,000
Scudder High-Yield Tax-Free              800-225-2470        2,500

                                               ASSETS
FUND NAME                                   (in millions)

ProFunds UltraOTC Inv                         $337.45
Berkshire Focus                                 13.00
Reserve Informed Investors Growth R              4.72
Potomac OTC Plus                                74.54
IPS Millennium                                  61.65

Nevis Fund                                      31.33
Strong Enterprise                              110.28
IPS New Frontier                                 2.50
PBHG Select Equity                             196.36
Berger Mid Cap Growth                           25.45

Van Wagoner Post-Venture                       128.50
BlackRock Micro-Cap Equity Class A               0.69
Van Wagoner Micro-Cap                          139.81
RS Emerging Growth                           1,388.29
RS Diversified Growth                          114.66

Boyle Marathon                                   1.92
Trent Equity                                     5.19
Value Trend Large Cap                            0.31
Warburg Pincus Capital Apprec Comm             940.17
Value Trend Links                                0.44

Amana Growth                                    13.62
Quaker Aggressive Growth                         5.31
Gintel                                         158.74
T.0. Richardson Sector Rotation                 28.58
Invesco Leisure                                403.12

Van Wagoner Emerging Growth                    603.37
Schroder Micro Cap Inv                          18.96
Midas Magic                                      0.56
FMI Focus                                       36.20
Bridgeway Micro-Cap Limited                     12.82

Alpha Analytics Value Funds                      2.40
Excelsior Value & Restructuring                703.06
AIM Basic Value Class A                          1.46
ICAP Select Equity                              26.46
Legg Mason Value Trust Primary              10,666.13

Atlas Strategic Growth A                        76.60
Matrix/LMH Value                                10.76
Strong Opportunity                           2,141.54
Meyers Pride Value                               5.30
Dreyfus Midcap Value                            92.29

Al Frank                                         6.49
ICM/Isabelle Small Cap Value Invmt               3.02
Royce Trust & GiftShares Inv                    11.91
Bridgeway Ultra-Small Company                   32.26
Gabelli Westwood Mighty Mites Ret                9.83

Green Century Balanced                          16.06
Berger Balanced                                122.74
Markman Moderate Allocation                     83.45
Monetta Balanced                                 8.12
Leonetti Balanced                               24.47

Warburg Pincus Intl Small Company               15.09
T. Rowe Price International Discovery          310.50
BlackRock Intl Small Cap Eq Svc                     0
Strong Overseas                                  6.00
William Blair International Growth N           194.98

Warburg Pincus Global Post-Vent Comm             7.38
American Century Global Growth Inv             163.63
Gabelli Global Opportunity                      12.32
Citizens Global Equity                         105.26
Kemper Global Discovery S                      376.46

Galaxy II U.S. Treasury Index Retail           181.15
Chase U.S. Government Secs Inv                  42.47
Pauze U.S. Govt Total Ret Bond NoLoad           54.80
Wright U.S. Treasury                            41.96
California Investment U.S. Govt Secs            30.83

IAA Trust Tax-Exempt Bond                       17.10
Scudder Managed Municipal Bonds                736.98
American Century High-Yield Muni Inv            37.15
AARP Insured Tax-Free General Bond           1,588.90
Scudder High-Yield Tax-Free                    414.89

(*) Source: Morningstar Inc.; data as of 12/31/99.

(**) Fund not yet assigned a ticker.

(***) Fund closed to new investors.