NOTES TO FINANCIAL STATEMENTS
February 26, 1999
Industry Leaders Fund (the "Trust") is an open-end management investment company organized as a business
trust under the laws of the State of Delaware by a Declaration of Trust dated December 13, 1998. The
Declaration of Trust provides for an unlimited number of authorized shares of beneficial interest without par value,
which may, without shareholder approval, be divided into an unlimited number of series of such shares, and which
presently consist of two series of shares for the Industry Leaders Fund (the "Fund").
The Fund uses an independent custodian and transfer agent. No transactions other than those relating to
organizational matters and the sale of 10,000 Shares of the Industry Leaders Fund have taken place to date.
The investment objective of the Fund is long term capital appreciation.
2. RELATED PARTY TRANSACTIONS
As of February 26, 1999, all of the outstanding shares of the Fund were owned by Claremont Investment
Partners, L.L.C. A shareholder who beneficially owns, directly or indirectly, more than 25% of the Fund's voting
securities may be deemed a "control person" (as defined in the 1940 Act) of the Fund.
Claremont Investment Partners, L.L.C., the Fund's investment adviser and administrator, is registered as an
investment adviser under the Investment Advisers Act of 1940. Claremont Investment Partners, L.L.C. is
controlled by Gerald P. Sullivan and Barry F. Sullivan who are also officers and trustees of the Fund.
As adviser, Claremont Investment Partners, L.L.C. receives from the Fund as compensation for its services to
the Fund an annual fee of 0.70% of the Fund's net assets. The fee is paid monthly and calculated on the average
daily closing net asset value of the Fund.
All expenses incurred in the operation of the Fund, except for the management fee and the Rule 12b-1
distribution plan fees are borne by the adviser.
3. DISTRIBUTION PLAN
The Fund has adopted a distribution plan with respect to