Executive Summary Report
June 30, 2000


Kayne Anderson
Small-Cap Equity Manager

• Assets held in the Kayne Anderson totaled $1.5 million at the close of the quarter with 98.1% in fixed income securities and 1.9% in cash.
• The portfolio return of 0.1 % outperformed the Russell 2000 Index (-3.8%) for the quarter.
• The manager's strong stock selection in the transportation and technology sectors was the primary reason that the portfolio outperformed. The only holding within the transportation sector, C. H. Robinson Worldwide (+33%) excelled amid strong revenue reports and multiple analysts upgrades. Within the technology sector, holdings like Dallas Semiconductor (+12%) and Fair Issac & Co. (+13% ) boosted performance. The manager's decision to underweight the technology sector (Russell 2000 Tech. -7.6%) in favor of the consumer non-durables sector (Russell 2000 Cons. Non-Durables +6.1 %) also benefited the portfolio's performance.
• The portfolio was diversified in eight of the nine of the major equity industry sectors.