UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-8014
ALPHA SELECT FUNDS
(Exact name of registrant as specified in charter)
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1205 Westlakes Drive Suite 100
Berwyn, PA 19312
(Address of principal executive offices) (Zip code)
Alpha Select Funds
P.O. Box 219520
Kansas City, MO 64121-9805
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-888-BI-ALPHA
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2003
DATE OF REPORTING PERIOD: MARCH 31, 2003
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1.
CONTENTS
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2 Total Returns and Fund Investment Objective
5 Statement of Net Assets
8 Statement of Operations
9 Statement of Changes in Net Assets
10 Financial Highlights
11 Notes to Financial Statements
15 Trustees and Officers of Trust
ALPHA SELECT FUNDS
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The Alpha Select Funds offer the Target Select Equity Fund (the "Fund"), a
non-diversified mutual fund for individual and institutional investors with
three separate classes of shares: Class A, Class C, and Class I. The Class I
Shares are the only active class of shares as of March 31, 2003. The minimum
initial investment in the Class A and Class C Shares is $1,000 ($500 for
retirement plans), and the minimum initial investment in Class I Shares is
$2,500. The minimum amount for subsequent investments is $50 for Class A, Class
C, and Class I Shares. The Fund reserves the right to waive the minimum initial
investment, and may do so for financial intermediaries who purchase shares
through a brokerage firm or a mutual fund marketplace.
CONCENTRATED CAPITAL MANAGEMENT, LP ("CCM"), located in King of Prussia,
Pennsylvania, was formed on May 19, 2000, and serves as the Adviser to the Fund.
CCM has appointed TURNER INVESTMENT PARTNERS, INC. as sub-adviser to the
Target Select Equity Fund
TURNER INVESTMENT PARTNERS, INC. is based in Berwyn, Pennsylvania. The
firm, founded in 1990, invests in equity, fixed-income, and balanced portfolios
on behalf of individuals and institutions. As of March 31, 2003, Turner had over
$8 billion in client assets under management.
Turner employs a quantitative investment model in its management of the
Fund. The model builds a portfolio of the best-ranked companies that is sector
neutral to the Russell 3000 Index, over-weighting Large/Small companies and
Growth/Value companies based on the forecast of Turners' asset allocation
models.
SHAREHOLDER SERVICES
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The Alpha Select Funds' shareholders receive annual and semiannual reports
and quarterly account statements. Shareholders who have questions about their
accounts may call a toll-free telephone number, 1-866-BI-ALPHA. Or they may
write to Alpha Select Funds, P.O. Box 219520, Kansas City, Missouri 64105-9520.
<page>
TARGET SELECT EQUITY FUND
SIX- ONE- THREE- FIVE- ANNUALIZED
TOTAL RETURNS* MONTH YEAR YEAR YEAR INCEPTION
SIX-MONTH PERIOD ENDED MARCH 31, 2003 RETURN RETURN RETURN RETURN TO DATE**
- -------------------------------------------------------------------------------------------------------------------
TARGET SELECT EQUITY FUND 2.73% (41.03)% (35.35)% (5.46)% (2.09)%
Russell 3000 Index 4.74 (24.66) (15.84) (3.72) (1.26)
S&P 500 Index 5.02 (24.76) (16.09) (3.76) (1.16)
Lipper Multi-Cap Growth Funds
Classification 4.62 (27.35) (26.98) (5.00) (3.33)
* Past performance cannot guarantee future results. The investment return and
principal value of an investment will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
** The inception date for the Target Select Equity Fund is December 31, 1997.
FUND INVESTMENT OBJECTIVE
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The TARGET SELECT EQUITY FUND seeks long-term capital appreciation. It
invests primarily (at least 80% of its net assets) in U.S. and foreign common
stocks and other equity securities of companies without regard to their market
capitalization. This is a non-fundamental investment policy that can be changed
by the Fund up to 60 days prior notice to shareholders. The Fund may invest in
securities of companies operating in a broad range of industries located in the
U.S. and overseas.
The Fund employs a multi-manager approach to take advantage of the best
investment ideas of a number of sub-advisers, each with its own investment
approach. Under a multi-manager approach, each sub-adviser manages a portion of
the Fund's assets, under the general supervision of the Fund's investment
adviser (such sub-advisers and investment adviser together, the "Advisers").
Here, each sub-adviser selects a relatively small number of securities, as few
as 10, for its portion of the Fund's assets. Such a focused security-selection
process permits each sub-adviser to act on only the investment ideas that it
thinks have the greatest return potential.
The Fund's investment adviser, Concentrated Capital Management, LP ("CCM")
ensures that the sub-advisers comply with the Fund's investment policies and
guidelines. CCM will also recommend the appointment of additional or replacement
sub-advisers to the Board of Trustees (the "Board").
Currently CCM employs and oversees one sub-adviser, Turner Investment
Partners, Inc., an affiliate of CCM, which currently manages 100% of the Fund's
total assets.
2
<page>
TARGET SELECT EQUITY FUND
During the six month period ended March 31, 2003, the Target Select Equity Fund
delivered a total return of 2.73%. This compares with a total return of 4.74%
for the Fund's benchmark, the Russell 3000 Index.
FUND STRUCTURE & MANAGEMENT
A team of portfolio managers from Turner Investment Partners manages the
Fund. David Kovacs, Senior Portfolio Manager, serves as lead manager of this
team. The managers employ a multi-style, all capitalization approach, with the
ability to overweight the style or capitalization believed by management to
provide the best opportunity for strong performance and price appreciation. The
management team uses quantitative modeling to assist with asset allocation and
security selection decisions. They also review the fundamentals of each company
within the portfolio to ensure that recent events or news relating to the
company that cannot be identified by the quantitative model are considered, and
their potential impact on stock performance is evaluated. This approach has
allowed the Fund to retain a well-diversified approach, with portfolio holdings
from a variety of distinct segments of the market.
MARKET REVIEW
During the month of October, the stock market broke out of a persistent
slump that began more than two years ago. Among the catalysts driving stocks
upward: better-than-expected earnings reports by blue-chip companies, bargain
hunting by investors and an aggressive half-point cut of short-term interest
rates by the Federal Reserve Board. However, after this strong start to the
quarter, the stock market suffered a set back during the month of December as
investors grew increasingly concerned about the prospect of war and a slow start
to the holiday retail season. The stock market continued to experience extreme
volatility during the first quarter, as a January rally gave way to a prolonged
slump. Military action in Iraq spurred another rally in March, followed by a
significant decline at the end of the quarter, as concerns mounted about the
progress of the war. Evidence of this volatility is visible in the results of
the Russell 3000 Index, which posted 28 positive days and 33 negative days of
performance during the quarter. In addition, the largest one-day gain for the
Russell 3000 (3.4% on March 17) equaled the largest single day decline (-3.4% on
March 24).
PORTFOLIO REVIEW
Contributing the most to performance were the Fund's holdings in the
technology and financial services sector. In addition, select specialty retail
holdings produced strong relative results.
The Fund's holdings in the producer durables sector, specifically the
aerospace and defense industry, detracted the most from performance during the
period.
3
<page>
TARGET SELECT EQUITY FUND
GROWTH OF A $10,000 INVESTMENT IN THE TARGET SELECT EQUITY FUND:
DECEMBER 31, 1997-MARCH 31, 2003 *
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
ALPHA SELECT TARGET SELECT EQUITY FUND S&P 500 COMPOSITE INDEX RUSSELL 3000 INDEX
12/31/97 $10000 $10000 $10000
SEP 98 10350 10603 10222
SEP 99 18634 13550 12912
SEP 00 32507 15350 15261
SEP 01 13770 11263 11002
SEP 02 8712 8956 8931
MAR 03 8950 9405 9355
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Annualized total returns
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PAST PAST PAST SINCE
ONE YEAR THREE YEARS FIVE YEARS INCEPTION
(41.03)% (35.35)% (5.46)% (2.09)%
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The performance in the above graph does not reflect
the deduction of taxes that a shareholder will pay on fund distributions or the
redemption of fund shares. The inception date of the Target Select Equity Fund
is December 31, 1997.
4
<page>
STATEMENT OF NET ASSETS ALPHA SELECT FUNDS
March 31, 2003 (Unaudited)
TARGET SELECT Market
EQUITY FUND Shares Value
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COMMON STOCK -- 98.6%
AEROSPACE PRODUCT & PARTS MANUFACTURING-- 2.0%
Boeing 200 $ 5,012
United Technologies 60 3,467
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8,479
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AGENCIES & OTHER INSURANCE RELATED ACTIVITIES-- 1.5%
AdvancePCS* 230 6,518
--------
6,518
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AUTOMOTIVE PARTS, ACCESSORIES & TIRE STORES-- 1.3%
Autozone* 80 5,497
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5,497
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BASIC CHEMICAL MANUFACTURING-- 2.8%
Air Products & Chemicals 140 5,800
Cabot 250 5,965
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11,765
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COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING -- 1.6%
Utstarcom* 350 6,996
--------
6,996
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COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING -- 4.6%
Hutchinson Technology* 430 10,629
Western Digital* 1,010 9,151
--------
19,780
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COMPUTER SYSTEMS DESIGN & RELATED
SERVICES -- 5.7%
Computer Sciences* 260 8,463
DST Systems* 200 5,440
Electronic Data Systems 590 10,384
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24,287
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CONSUMER GOODS RENTAL -- 1.8%
Hollywood Entertainment* 480 7,699
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7,699
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Market
Shares Value
- --------------------------------------------------------------------------------
DATA PROCESSING SERVICES -- 1.7%
Affiliated Computer Services, Cl A* 160 $ 7,082
--------
7,082
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DEPARTMENT STORES -- 5.7%
May Department Stores 310 6,166
Sears Roebuck 400 9,660
TJX 480 8,448
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24,274
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DEPOSITORY CREDIT INTERMEDIATION-- 7.4%
Flagstar Bancorp 320 8,438
IndyMac Bancorp 370 7,197
Sovereign Bancorp 460 6,371
Washington Mutual 270 9,523
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31,529
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DRUGS & DRUGGISTS' SUNDRIES WHOLESALE-- 3.2%
AmerisourceBergen 150 7,875
McKesson 240 5,983
--------
13,858
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ELECTRIC POWER GENERATION, TRANSMISSION & DISTRIBUTION-- 4.9%
Exelon110 5,545
Public Service Enterprise Group 270 9,906
TECO Energy 520 5,528
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20,979
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ELECTRONIC SHOPPING & MAIL-ORDER HOUSES-- 1.2%
Overture Services* 350 5,309
--------
5,309
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ELECTRONICS & APPLIANCE STORES-- 2.1%
IKON Office Solutions 1,240 8,804
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8,804
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GRAIN & OILSEED MILLING -- 1.5%
General Mills 140 6,377
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6,377
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5
STATEMENT OF NET ASSETS ALPHA SELECT FUNDS
March 31, 2003 (Unaudited)
TARGET SELECT Market
EQUITY FUND (Continued) Shares Value
- --------------------------------------------------------------------------------
GROCERY STORES -- 2.0%
Safeway* 450 $ 8,519
--------
8,519
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HEALTH & PERSONAL CARE STORES -- 1.5%
NBTY* 340 6,446
--------
6,446
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HOME HEALTH CARE SERVICES -- 1.2%
Apria Healthcare Group* 220 5,139
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5,139
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HOUSEHOLD & INSTITUTIONAL FURNITURE &
KITCHEN CABINET MANUFACTURING -- 0.8%
Masco 180 3,352
--------
3,352
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HOUSEHOLD APPLIANCE MANUFACTURING-- 1.9%
Whirlpool 170 8,335
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8,335
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INSURANCE CARRIERS -- 12.3%
Aetna 110 5,423
AMBAC Financial Group 120 6,062
Amerigroup* 280 8,193
Cigna 170 7,772
Metlife 300 7,914
Odyssey Re Holdings 470 8,484
PMI Group 350 8,943
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52,791
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MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING -- 0.9%
Baxter International 200 3,728
--------
3,728
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MOTOR VEHICLE BODY & TRAILER
MANUFACTURING -- 0.8%
Thor Industries 140 3,504
--------
3,504
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Market
Shares Value
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION -- 2.5%
UGI 230 $ 10,511
--------
10,511
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NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING-- 2.6%
Fisher Scientific International* 200 5,592
Raytheon 200 5,674
--------
11,266
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NONDEPOSITORY CREDIT INTERMEDIATION-- 2.2%
Countrywide Financial 160 9,200
--------
9,200
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OIL & GAS EXTRACTION -- 1.9%
Chesapeake Energy 1,010 7,939
--------
7,939
--------
OTHER FOOD MANUFACTURING -- 1.6%
Sensient Technologies 340 6,807
--------
6,807
--------
OTHER INVESTMENT POOLS & FUNDS-- 1.5%
Equity Office Properties Trust 260 6,617
--------
6,617
--------
OTHER PERSONAL SERVICES -- 1.7%
Cendant* 560 7,112
--------
7,112
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OUTPATIENT CARE CENTERS -- 2.0%
Select Medical* 600 8,550
--------
8,550
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PETROLEUM & COAL PRODUCTS MANUFACTURING -- 1.9%
Unocal 310 8,156
--------
8,156
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6
STATEMENT OF NET ASSETS ALPHA SELECT FUNDS
March 31, 2003 (Unaudited)
TARGET SELECT Market
EQUITY FUND (Concluded) Shares Value
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE MANUFACTURING-- 0.8%
Sigma-Aldrich 80 $ 3,559
--------
3,559
--------
PIPELINE TRANSPORTATION OF NATURAL GAS-- 2.2%
El Paso Energy Partners 150 4,655
Kinder Morgan Energy Partners 130 4,810
--------
9,465
--------
RAIL TRANSPORTATION -- 1.3%
Norfolk Southern 180 3,341
Union Pacific 40 2,200
--------
5,541
--------
RESIDENTIAL BUILDING CONSTRUCTION-- 0.8%
Toll Brothers* 170 3,281
--------
3,281
--------
SCHEDULED AIR TRANSPORTATION-- 0.5%
Skywest 220 2,268
--------
2,268
--------
SOFTWARE PUBLISHERS -- 2.7%
Symantec* 160 6,269
Take-Two Interactive Software* 240 5,364
--------
11,633
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TOBACCO MANUFACTURING -- 2.0%
Universal 230 8,685
--------
8,685
--------
TOTAL COMMON STOCK
(Cost $416,985) 421,637
--------
WARRANTS--0.1%
Dime Bancorp,
Expires 11/22/05* 300 45
MicroStrategy, Expires 06/24/07* 3 --
--------
TOTAL WARRANTS
(Cost $0) 45
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Face
Amount Value
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.3%
Morgan Stanley (A) 1.000%, dated
03/31/03, matures 04/01/03,
repurchase price $22,875
(collateralized by U.S.
Government obligations,
total market value $23,332) $22,874 $ 22,874
--------
TOTAL REPURCHASE AGREEMENT
(Cost $22,874) 22,874
--------
TOTAL INVESTMENTS -- 104.0%
(Cost $439,859) 444,556
--------
OTHER ASSETS AND LIABILITIES -- (4.0)%
Receivable Due from Investment Adviser 10,174
Payable Due to Administrator (52)
Other Assets and Liabilities, Net (27,174)
--------
TOTAL OTHER ASSETS AND LIABILITIES, NET (17,052)
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NET ASSETS:
Portfolio Capital
(unlimited authorization - no par value)
based on 103,376 outstanding shares
of beneficial interest 2,498,209
Undistributed Net Investment Income 3,394
Accumulated Net Realized Loss
on Investments (2,078,838)
Net Unrealized Appreciation
on Investments 4,697
Net Unrealized Appreciation on Foreign
Currency and Translation of Other
Assets and Liabilities in Foreign
Currency Investments 42
--------
TOTAL NET ASSETS-- 100% $ 427,504
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE $4.14
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
7
<page>
STATEMENT OF OPERATIONS ALPHA SELECT FUNDS
For the Six-Month Period Ended March 31, 2003 (Unaudited)
TARGET SELECT
EQUITY FUND
- --------------------------------------------------------------------------------
Investment Income:
Dividend ........................................................ $ 2,592
Interest.......................................................... 82
Securities Lending................................................ 332
Less: Foreign Taxes Withheld...................................... (3)
- --------------------------------------------------------------------------------
Total Investment Income......................................... 3,003
- --------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ........................................ 1,763
Administrator Fees .............................................. 280
Professional Fees ............................................... 19,278
Transfer Agent Fees ............................................. 25,921
Registration Fees ............................................... 9,548
Trustee Fees ..................................................... 10,300
Custodian Fees .................................................. 6,826
Printing Fees .................................................... 3,732
Insurance and Other Fees.......................................... 239
- --------------------------------------------------------------------------------
Total Expenses .............................................. 77,887
Less: Investment Advisory Fee Waiver ....................... (1,763)
Reimbursements from Adviser ............................ (75,375)
Directed Brokerage...................................... (1,202)
- --------------------------------------------------------------------------------
Net Expenses ................................................... (453)
- --------------------------------------------------------------------------------
Net Investment Income........................................ 3,456
- --------------------------------------------------------------------------------
Net Realized Loss From Securities Sold .......................... (12,288)
Net Change in Unrealized Appreciation on Investment Securities.... 13,974
Net Change in Unrealized Appreciation
on Foreign Currency and Translation of Other
Assets and Liabilties Denominated in Foreign Currency........... 18
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments................... 1,704
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations.............. $ 5,160
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
8
<page>
STATEMENT OF CHANGES IN NET ASSETS ALPHA SELECT FUNDS
For the Six-Month Period Ended March 31, 2003 (Unaudited) and the Year Ended
September 30, 2002
TARGET SELECT
EQUITY FUND
-----------------------------------------
2003 2002
- -------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss)........................................ $ 3,456 $ (5,687)
Net Realized Loss From Securities Sold.............................. (12,288) (347,147)
Net Realized Gain on Foreign Currency Transactions.................. -- 306
Net Change in Unrealized Appreciation on Investment Securities...... 13,974 290,268
Net Change in Unrealized Appreciation on Foreign Currency
and Translation of Other Assets and Liabilities Denominated in
Foreign Currency.................................................. 18 7
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Operations............................................... 5,160 (62,253)
- -------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds From Shares Issued......................................... 138,333 96,300
Cost of Shares Redeemed............................................. (8,550) (1,500,025)
- -------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions................................... 129,783 (1,403,725)
- -------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets........................... 134,943 (1,465,978)
- -------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period............................................... 292,561 1,758,539
- -------------------------------------------------------------------------------------------------------------------
End of Period .................................................... $ 427,504 $ 292,561
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Issued.............................................................. 32,817 14,359
Redeemed............................................................ (2,021) (217,786)
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares................................... 30,796 (203,427)
- -------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
9
<page>
FINANCIAL HIGHLIGHTS ALPHA SELECT FUNDS
For a Share Outstanding Throughout Each Period
Net Net
Asset Net Realized and Distributions Distributions Asset
Value Investment Unrealized from Net from Value
Beginning Income Gains (Losses) Investment Capital End
of Period (Loss) on Investments Income Gains of Period
--------- ------ -------------- ------ ----- ---------
- -------------------------
TARGET SELECT EQUITY FUND
- -------------------------
2003* $ 4.03 $ 0.03 $ 0.08 $ -- $ -- $ 4.14
2002 6.37 (0.09) (2.25) -- -- 4.03
2001(1) 21.84 (0.02) (10.32) -- (5.13) 6.37
2000 17.17 (0.06) 10.74 -- (6.01) 21.84
1999 10.34 (0.07) 7.80 -- (0.90) 17.17
1998(3) 10.00 -- 0.35 (0.01) -- 10.34
Ratio
of Net
Net Ratio Investment
Assets Ratio of of Total Income
End Net Expenses Expenses (Loss) Portfolio
Total of Period to Average to Average to Average Turnover
Return (000) Net Assets++ Net Assets Net Assets++ Rate
------ ----- ------------ ---------- ------------ ----
- -------------------------
TARGET SELECT EQUITY FUND
- -------------------------
2003* 2.73%+ $ 428 (0.23)% 40.31% 1.79% 451.19%
2002 (36.73) 293 1.10 26.94 (0.80) 984.03
2001(1) (57.64) 1,759 1.23(2) 10.29 (0.26) 681.78
2000 74.45 4,506 1.30 6.06 (0.55) 1,081.55
1999 80.04 1,839 1.30 10.19 (0.56) 1,279.40
1998(3) 3.50+ 966 1.30 18.76 0.02 803.02
* For the six-month period ended March 31, 2003 (unaudited). All ratios for
the period have been annualized.
+ Returns are for the period indicated and have not been annualized.
++ Inclusive of directed brokerage arrangements, waivers, and reimbursements.
(1) On October 19, 2000 shareholders of the TIP Target Select Equity Fund (the
"Fund") approved a tax-free reorganization under which all assets and
liabilities of the Fund were transferred to the Alpha Select Funds Target
Select Equity Fund. In connection with the reorganization, shareholders
approved a change in the adviser from Turner Investment Partners, Inc. to
Concentrated Capital Management, LP.
(2) On November 1, 2000 the maximum expense cap changed from 1.30% to 1.22%. See
note 5 in the Notes to Financial Statements.
(3) Commenced operations on December 31, 1997. All ratios for the period have
been annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
10
<page>
NOTES TO FINANCIAL STATEMENTS ALPHA SELECT FUNDS
March 31, 2003 (UNAUDITED)
1. ORGANIZATION:
ALPHA SELECT FUNDS (the "Trust"), a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company with one portfolio, the Target Select Equity Fund (the
"Fund"). The Fund is registered to offer three separate classes of shares: Class
A Shares, Class C Shares and Class I Shares. The Class I Shares are the only
active class of shares as of March 31, 2003. The Fund is non-diversified, and
may therefore be invested in equity securities of a limited number of issuers.
The Fund's prospectus provides a description of the Fund's investment
objectives, policies, and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Fund.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States 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 income and expenses during the reported period. Actual results
could differ from those estimates.
SECURITY VALUATION -- Investments in equity securities which are traded on a
national exchange (or reported on the NASDAQ national market system) are
stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Securities
listed on a foreign exchange are valued based on quotations from the primary
market in which they are traded. Long-term debt securities are valued by an
independent pricing service and such prices are believed to reflect the fair
value of such securities. Short-term obligations with maturities of sixty
days or less are valued at amortized cost which approximates market value.
Subject to the foregoing, other securities and assets for which market
quotations are not readily available are valued at fair value as determined
in good faith by or under the direction of the Fund's Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date, and interest income
is recognized on the accrual basis. Costs used in determining realized gains
and losses on the sales of investment securities are those of the specific
securities sold during the respective holding period.
NET ASSET VALUE PER SHARE -- The net asset value per share of the Fund is
calculated on each business day, by dividing the total value of the Fund's
assets, less liabilities, by the number of shares outstanding.
FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars on the following basis: (I) market value of
investment securities, other assets and liabilities at the current rate of
exchange; and (II) purchases and sales of investment securities, income and
expenses at the relevant rates of exchange prevailing on the respective date
of such transaction.
11
<page>
NOTES TO FINANCIAL STATEMENTS (Continued) ALPHA SELECT FUNDS
March 31, 2003 (UNAUDITED)
For foreign equity securities, the Fund does not isolate that portion of
gains and losses on investment securities that is due to changes in the
foreign exchange rates from that which is due to changes in market prices of
equity securities.
The Fund reports certain foreign currency related transactions as components
of realized and unrealized gains and losses for financial reporting
purposes, whereas such components are treated as ordinary income for Federal
income tax purposes.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market
value of the collateral, including accrued interest thereon, is not less
than 102%. In the event of default of the counterparty and the value of the
collateral declines or if the counterparty enters an insolvency proceeding,
realization of the collateral by the Fund may be delayed or limited.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income
are declared and paid to shareholders annually. Any net realized capital
gains on sales of securities are distributed to shareholders at least
annually.
3. TRANSACTIONS WITH AFFILIATES:
Certain officers of the Trust are also officers of Turner Investment Partners,
Inc. (the Sub-Adviser and Administrator) and SEI Investments Global Funds
Services (the Sub-Administrator) and/or SEI Investments Distribution Co. Such
officers are paid no fees by the Trust for serving as officers and trustees of
the Trust. The Fund effects trades through Turner Investment Distributors, Inc.
for security purchases and sales transactions. Commissions paid through those
trades for the Fund for the six-month period ended March 31, 2003, were $4,687.
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
Turner Investment Partners, Inc. ("Turner") provides administrative services to
the Fund under an Administration Agreement with the Trust. For its services,
Turner receives an annual fee of 0.15% of the aggregate average daily net assets
of the Trust up to $2 billion, and 0.12% on such assets in excess of $2 billion
(subject to applicable waivers). Under a separate Sub-Administration Agreement
between Turner and SEI Investments Global Funds Services ("SEI"), SEI provides
accounting and other administrative services to the Fund. For the six-month
period ended March 31, 2003, SEI was paid $156 by Turner.
Turner Investment Distributors, Inc., a broker dealer subsidiary of Turner
provides distribution services and shareholder servicing to the Fund under
separate Distribution and shareholder servicing agreements.
12
<page>
NOTES TO FINANCIAL STATEMENTS (Continued) ALPHA SELECT FUNDS
March 31, 2003 (UNAUDITED)
DST Systems, Inc., (the "Transfer Agent"), serves as the transfer agent and
dividend disbursing agent for the Fund under a transfer agency agreement with
the Trust. The Fund pays amounts to third parties that provide sub-transfer
agency and other administrative services to the Fund.
The Fund has directed certain portfolio trades to brokers who paid a portion of
its expenses (Directed Brokerage). For the six-month period ended March 31,
2003, the Fund's expenses were reduced by $1,202 under this arrangement. The
effect on the Fund's expense ratio as a percentage of the average net assets of
the Fund on an annualized basis for the six-month periodended March 31, 2003 was
0.62%.
5. INVESTMENT ADVISORY AGREEMENT:
The Trust and Concentrated Capital Management, LP ("CCM") (the "Adviser") are
parties to an Investment Advisory Agreement dated May 23, 2000, under which the
Adviser receives an annual fee base equal to 1.0625% of the average daily net
assets of the Fund. The Fund has one Sub-Adviser, Turner Investment Partners,
Inc. For its services, the Sub-Adviser is entitled to receive a fee payable by
CCM. The Adviser has contractually agreed to waive all or a portion of its fees
and to reimburse expenses of the Fund in order to limit its total operating
expenses (as a percentage of average daily net assets on an annualized basis) to
not more than 1.50% and to voluntarily keep the Fund's "other expenses" (as a
percentage of average daily net assets on an annualized basis) from exceeding
0.1575%.
The Advisory fee for the Fund is subject to a performance adjustment based on
the Fund's performance relative to the performance of its benchmark. If the Fund
outperforms its benchmark by 3% or more, CCM will receive higher advisory fees.
If the Fund underperforms its benchmark by 3% or more, CCM will receive lower
advisory fees. Accordingly, the overall fee may vary by 0.15% either way. During
the six-month period ended March 31, 2003, the Fund's gross Advisory Fees were
adjusted in accordance with the performance based fee described above:
BASE PERFORMANCE GROSS
ADVISER FEE ADJUSTMENT ADVISER FEE
-------------- -------------- --------------
$2,053 $(290) $1,763
6. INVESTMENT TRANSACTIONS:
The total cost of security purchases and the proceeds from security sales, other
than short-term investments, for the six-month period ended March 31, 2003, were
as follows:
Purchases ......................... $1,841,047
Sales ............................. 1,694,439
7. FEDERAL INCOME TAXES:
The Fund is classified as a separate taxable entity for Federal income tax
purposes. The Fund intends to continue to qualify as a separate "regulated
investment company" under the Internal Revenue Code and make the requisite
distributions to shareholders that will be sufficient to relieve it from Federal
income tax and Federal excise tax. Therefore, no Federal tax provision is
required.
The amounts of distributions from net investment income and net realized capital
gains are determined in accordance with Federal income tax regulations, which
may differ from those amounts determined under accounting principles generally
accepted in the United States of America. These book/tax differences are either
temporary or permanent in nature. The character of distributions made during the
year from net investment
13
<page>
NOTES TO FINANCIAL STATEMENTS (Concluded) ALPHA SELECT FUNDS
March 31, 2003 (UNAUDITED)
income or net realized gains, and the timing of distributions where the fiscal
year in which the amounts are distributed may differ from the year that the
income or realized gains (losses) were recorded by the Fund. To the extent these
differences are permanent, adjustments are made to the appropriate equity
accounts in the period that the differences arise.
The Fund had capital loss carryforwards at September 30, 2002 as follows:
YEAR LOSS EXPIRES AMOUNT
- ----------------- ------
2010 .............................. $1,649,644
2009 .............................. 121,394
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains.
At March 31, 2003, the total cost of securities for Federal income tax purposes
and the aggregate gross unrealized appreciation and depreciation for the
securities held by the Fund was as follows:
Federal tax cost $439,859
=========
Aggregate gross unrealized appreciation $ 16,403
Aggregate gross unrealized depreciation (11,706)
---------
Net unrealized appreciation $ 4,697
=========
8. FORWARD FOREIGN CURRENCY CONTRACTS:
The Fund can enter into forward foreign currency exchange contracts as a hedge
against portfolio positions and in connection with portfolio purchases and sales
of securities denominated in foreign currency. Such contracts, which protect the
value of the Fund's investment securities against a decline in the value of the
hedged currency, do not eliminate fluctuations in the underlying prices of the
securities. They simply establish an exchange rate at a future date. Although
such contracts tend to minimize the risk of loss due to a decline in the value
of a hedged currency, at the same time they tend to limit any potential gain
that might be realized should the value of such foreign currency increase. There
were no forward foreign currency contracts outstanding at March 31, 2003.
9. LOANS OF PORTFOLIO SECURITIES:
The Fund may lend securities in its portfolio pursuant to a securities lending
agreement ("Lending Agreement") with Goldman Sachs & Co. Unless otherwise
agreed, security loans made pursuant to the Lending Agreement are required at
all times to be secured by collateral equal to at least 100% of the market value
of the securities loaned. Cash collateral received is invested pursuant to the
terms approved by the board of trustees. All such investments are made at the
risk of the Funds and, as such, the Funds are liable for investment losses. Net
income earned on investment of cash collateral and loan fees received on
non-cash collateral are allocated between Goldman Sachs & Co. and the Funds in
accordance with the Lending Agreement. In the event of bankruptcy of the
borrower, realization/ retention of the collateral may be subject to legal
proceedings.
No securities were on loan as of March 31, 2003.
14
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)
TRUSTEES
- --------------------------------------------------------------------------------
ALFRED C. SALVATO
- --------------------------------------------------------------------------------
ADDRESS 13 Fountain Court, Cherry Hill, NJ 08034
AGE (44)
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED
Trustee since 1996
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Treasurer, Thomas Jefferson
University Health Care Pension Fund since 1995, and Assistant Treasurer,
1988-1995.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE 1
OTHER DIRECTORSHIPS HELD Turner Funds
- --------------------------------------------------------------------------------
RONALD FILANTE
- --------------------------------------------------------------------------------
ADDRESS 51 Verdun Avenue, New Rochelle, NY 10804
AGE (57)
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED Trustee since 1996
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Associate Professor of Finance,
Pace University, since 1987.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE 1
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
STEPHEN J. KNEELEY (1)
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100,
Berwyn, PA 19312
AGE (39)
POSITION(S) HELD WITH FUND Trustee, President & Chief Executive Officer
TERM OF OFFICE AND LENGTH OF TIME SERVED Trustee since 2001
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS TID Director, President of
Turner - Chief Operating Officer of Turner, 1990-2001.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE 1
OTHER DIRECTORSHIPS HELD University of Richmond
OFFICERS
- --------------------------------------------------------------------------------
JOHN H. GRADY, JR.
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100,
Berwyn, PA 19312
AGE (41)
POSITION(S) HELD WITH FUND Executive Vice President & Secretary TERM OF OFFICE
AND LENGTH OF TIME SERVED Vice President & Secretary since 2001
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Chief Operating Officer, General
Counsel and Chief Legal Officer of Turner since February, 2001. TID President
and Chief Operating Officer since September 2001. Partner, Morgan, Lewis &
Bockius LLP (October 1995-January 2001).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
BRIAN M. FERKO
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100,
Berwyn, PA 19312
AGE (31)
POSITION(S) HELD WITH FUND Vice President & Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President & Assistant
Secretary since 2000
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS TID Vice President,
Director of Mutual Fund Administration and
Operations for the Turner Funds since 1997.
Relationship Manager, SEI Investments (1995-1997).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- ----------
(1) Mr. Kneeley is considered to be an "interested person" of the Fund as
defined in the Investment Company Act of 1940 because he is President of
Turner Investment Partners, Inc.
15
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TODD B. CIPPERMAN
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (35)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President & Assistant
Secretary since 1996
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and
Assistant Secretary of SEI Investments since
1995. Previously, Associate, Dewey Ballantine,
1994-1995. Associate, Winston and Strawn, 1991-1994.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
PETER GOLDEN
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (38)
POSITION(S) HELD WITH FUND Controller and Chief Accounting Officer
TERM OF OFFICE AND LENGTH OF TIME SERVED Controller and Chief Accounting Officer
since 2001
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Director of Fund Accounting of
SEI Investments since June 2001. Previously, Vice President of Fund
Administration, JPMorgan Chase & Co., March 2000-April 2001; Vice President,
Fund and Pension Accounting June 1997-March 2000.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
LYDIA A. GAVALIS
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (38)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President and Assistant
Secretary since 1999
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and Assistant
Secretary of SEI Investments since 1998. Assistant General
Counsel and Director of Arbitration, Philadelphia Stock Exchange, 1989-1998.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
WILLIAM E. ZITELLI, JR.
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (34)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President and
Assistant Secretary since 2000
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and
Assistant Secretary of SEI Investments since
August 2000. Vice President, Merrill Lynch & Co.
Asset Management Group (1998-2000). Associate at Pepper Hamilton
LP (1997-1998). Associate at Reboul, MacMurray,
Hewitt, Maynard & Kristol (1994-1997).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS Held N/A
- --------------------------------------------------------------------------------
TIMOTHY D. BARTO
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (34)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President and
Assistant Secretary since 2000
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and
Assistant Secretary of SEI Investments since December 1999.
Associate at Dechert Price & Rhoads (1997-1999).
Associate at Richter, Miller & Finn (1994-1997).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
16
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
CHRISTINE M. MCCULLOUGH
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (41)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President and
Assistant Secretary since 2000
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and Assistant
Secretary of SEI Investments since December 1999. Associate at White and
Williams LLP (1991-1999). Associate at Montgomery, McCracken, Walker & Rhoads
(1990-1991).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
DIANE J. DRAKE
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100,
Berwyn, PA 19312
AGE (35)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President and Assistant Secretary
since 2001
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Deputy Counsel for Turner since
October 2001. Previously, Associate, Stradley, Ronon, Stevens & Young, LLP (June
1998-October 2001). Staff Attorney, Rodney Square Management Corporation
(November 1996-June 1998).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
BRIAN MCNALLY
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100,
Berwyn, PA 19312
AGE (44)
POSITION(S) HELD WITH FUND Vice President
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President since 2002
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Deputy Counsel
for Turner since October 2002. Previously, Assistant General Counsel
with Bank of America (September 1997-July 2002).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
JOHN CANNING
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100,
Berwyn, PA 19312
AGE (31)
POSITION(S) HELD WITH FUND Vice President
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President since 2002
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Assistant Director of Mutual
Fund Administration and Operations since 2000. Previously, Implementations
Analyst with SEI Investments (December 1998-December 2000). Transfer Agent
Manager with Pilgrim Baxter and Associates (February 1998-December 1998).
Account Director with SEI Investments (July 1993-February 1998).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
ANTOINETTE ROBBINS
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100,
Berwyn, PA 19312
AGE (39)
POSITION(S) HELD WITH FUND Vice President
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President since 2002
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Director of Compliance
for Turner since 2002. Previously, Senior Gift Planning Officer
with American Civil Liberties Union (May 2001-August 2001). Assistant Vice
President, Counsel with Equitable Financial Consultants, Inc.
(March 1996-March 2001).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN
BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
17
Notes
<page>
[blank page]
<page>
TRUST
Alpha Select Funds
P.O. Box 219520
Kansas City, MO 64105-9520
INVESTMENT ADVISER
Concentrated Capital Management, LP
SUB-ADVISER
Turner Investment Partners, Inc.
DISTRIBUTOR
Turner Investment Distributors, Inc.
ADMINISTRATOR
Turner Investment Partners, Inc.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT AUDITORS
Ernst & Young LLP
To open an account, receive account information, make inquiries, or request
literature: 1-888-BI-ALPHA
THIS REPORT WAS PREPARED FOR SHAREHOLDERS OF THE ALPHA SELECT TARGET SELECT
EQUITY FUND. IT MAY BE DISTRIBUTED TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY
A CURRENT PROSPECTUS, WHICH CONTAINS DETAILED INFORMATION.
ALP-SA-001-0200
SEMIANNUAL
REPORT
MARCH 31, 2003
[LOGO OMITTED]
- --------------------------------------------------------------------------------
Target Select Equity Fund
- --------------------------------------------------------------------------------
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEMS 4-6. (RESERVED)
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEMS 8. (RESERVED)
ITEM 9. CONTROLS AND PROCEDURES.
(a) Not applicable at this time.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of our evaluation.
ITEMS 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2) in the exact form set forth below: Attached hereto.
SIGNATURES
Pursuant to the requirements of the securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Alpha Select Funds
By (Signature and Title)* \s\ Stephen J. Kneeley
-----------------------------------
Stephen J. Kneeley, President and CEO
Date 5/29/03
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* \s\ Stephen J. Kneeley
-----------------------------------
Stephen J. Kneeley, President and CEO
Date 5/29/03
By (Signature and Title)* \s\ Peter J. Golden
-----------------------------------
Peter J. Golden, Controller and CAO
Date 5/29/03
* Print the name and title of each signing officer under his or her signature.