<PAGE> 1
[STAAR(SM) Investment Trust Logo]
Semi-Annual Report
January 1 to June 30, 2000
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604 McKnight Park Dr.
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412-367-9076
<PAGE> 2
LETTER TO SHAREHOLDERS
August 15, 2000
Dear Shareholder:
The first half of 2000 saw the return of volatility to the U.S. stock
markets. After a weak start, the major indexes jumped in March only to correct
precipitously in April and May. A modest recovery has the S&P 500 back in
positive territory for the year, but the DOW is still down year-to-date. The
NASDAQ corrected over 35% from its high and International stock markets never
got much momentum before getting hammered in April and May and have yet to
recover much. Table A illustrates the highs and lows for various market indexes
through 8/14/2000.
This is a year when good money managers are earning their keep. The average
stock mutual fund is beating the indexes and the STAAR Funds are generally
performing well in this volatile environment. For a couple years we have been
warning investors that the index fund craze could surprise investors who failed
to understand that the math works in reverse just like it does when the markets
are going up.
<TABLE>
<CAPTION>
Table A -- Year 2000 Through 8/14/00
--------------------------------------------------------------------------------
Index Beginning Intra-day Intra-day Value at Change Difference
of Year High for Low For Close From 1/1 From
Year Year 8/14/00 High to
Low
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
D Jones Ind 11497 11909 9612 11176 -2.79% -19.3%
S&P 500 1469 1553 1325 1492 +1.5% -14.7%
NASDAQ 4069 5133 3010 3850 -5.4% -41.4%
Russell 2000 505 614 440 514 +1.9% -28.3%
EAFE (Int'l) 1760 1774 1554 1617 -8.1% -12.4%
</TABLE>
Overall, the economy has continued its unprecedented expansion. There have
been signs of slowing, but the threat of recession appears low. Inflationary
pressures seem to be easing. This may mean that the Federal Reserve will limit
future interest rate increases. The gains in the bond markets over the last few
months affirm this view. Our overall positive outlook remains intact, though
investors should not ignore the risks inherent in variable markets.
We are still in the middle of a momentous technological revolution.
Economies worldwide continue to increase their productivity and trade. I
continue to see excellent opportunities for investors. There will be more ups
and downs, but patient long term investors have a good opportunity to be
rewarded as the world economies progress.
The detailed information in this report is provided to assist you in
understanding your investment. Please feel free to call me personally if you
have a question.
On behalf of the Trustees and people of STAAR Financial Advisors, Inc., I
want to thank you for your continued confidence in us. We remain deeply grateful
for you and committed to your well being.
Sincerely Yours,
/s/ J. Andre Weisbrod, Trustee
J. Andre Weisbrod, Trustee
President, STAAR Financial Advisors, Inc.,
Advisor to the Trust
STAAR Investment Trust Semi-Annual Report 6/30/00 (Published 9/1/00) Page 1
<PAGE> 3
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updated daily)
o PROSPECTUS AND APPLICATION FORM
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STAAR Investment Trust Semi-Annual Report 6/30/00 Page 2
<PAGE> 4
Perspective & Performance(1)
Indexes used for comparisons are selected as being closest to each Fund's
objectives. Multiple indexes are used where a single index may not correlate
completely with a Fund's objectives, strategies and/or portfolio holdings.
INTERMEDIATE BOND FUND (IBF)
A high-grade general bond portfolio of US Gov't, Gov't Agency and
Investment Grade Corp. Bonds with an average maturity usually between 3 and 7
years.
Bond yields continued to decline in the second quarter, increasing bond
values and resulting in continued positive returns. The question for the second
half of 2000 centers on Federal Reserve policy. It seems likely that the Fed
will leave rates alone in August. This would confirm the bond market's message
that rates should stabilize. However a negative message from the Fed in the
months to come could reverse this trend.
<TABLE>
<CAPTION>
Quarter Year-to-Date Three Year Since Public Since Private
Performance for Periods Ending Period 1/1/00 One Year Avg. Annual Inception Inception
Ending 6/30/00(1) 6/30/00 to 6/30/00 Return Return(2) (5/28/97)(2) (4/4/96)(2)
<S> <C> <C> <C> <C> <C> <C>
IBF TOTAL RETURN 1.4% 2.9% 3.5% 4.9% 5.1% 4.3%
Lehm Bros Intrm Gov/Corp Indx 1.5% 4.2% 4.3% 6.0% 6.5% 5.4%
MornStar Interm-Term Fds Avg 1.1% 2.9% 3.3% 4.9% 5.3% 6.2%
</TABLE>
<TABLE>
<S> <C> <C> <C>
Current Yield as of 6/30/00 .......................... 6.0%(3) S.E.C. Yield as of 6/30/00 .......................... 5.6%(4)
Average Maturity ..................................... 4.1 Years Portfolio Turnover .................................. 0.0%
</TABLE>
(1) Total returns include reinvested dividends and gains. (2) The Fund's public
registration with the S.E.C. was effective 5/28/97. The Fund was in existence
from 4/4/96 to 5/28/97 as a private trust. There were no operational changes as
a result of public inception. (3) Current Yield is calculated by dividing the
projected annual income by the current net assets (total portfolio value less
accrued expenses) (4) S.E.C. Yield is calculated by taking actual net income
received during the past thirty days divided by the average shares for the last
thirty days, divided by the maximum offering price on the last day of the period
and then annualized.
LONG TERM BOND FUND (LTBF)
A high-grade general bond portfolio of US Gov't, Gov't Agency and
Investment Grade Corp. Bonds with an average maturity over 10 years.
Long-term yields have dropped more than short term, signifying a belief in
the market that the Federal Reserve policy is working and that long-term
inflation concerns are lessening. If this is true, then rest of 2000 could see
similar positive performance in the second half of the year.
<TABLE>
<CAPTION>
Quarter Year-to-Date Three Year Since Public Since Private
Performance for Periods Ending Period 1/1/99 One Year Avg. Annual Inception Inception
Ending 6/30/00(1) 6/30/00 to 6/30/00 Return Return(2) (5/28/97)(2) (4/4/96)(2)
<S> <C> <C> <C> <C> <C> <C>
LTBF TOTAL RETURN 0.6% 3.8% 1.1% 5.2% 6.0% 5.4%
Lehm Bros LT Gov/Corp Indx 0.9% 6.5% 4.6% 7.1% 7.8% 7.2%
MornStar Long-Term Fds Avg 0.3% 2.7% 2.2% 4.5% 5.1% 5.4%
</TABLE>
<TABLE>
<S> <C> <C> <C>
Current Yield as of 6/30/00 .......................... 7.0%(3) S.E.C. Yield as of 6/30/00 .......................... 6.2%(4)
Average Maturity ..................................... 13.2 Years Portfolio Turnover .................................. 7.8%
</TABLE>
(1) Total returns include reinvested dividends and gains. (2) The Fund's public
registration with the S.E.C. was effective 5/28/97. The Fund was in existence
from 4/4/96 to 5/28/97 as a private trust. There were no operational changes as
a result of public inception. (3) Current Yield is calculated by dividing the
projected annual income by the current net assets (total portfolio value less
accrued expenses) (4) S.E.C. Yield is calculated by taking actual net income
received during the past thirty days divided by the average shares for the last
thirty days, divided by the maximum offering price on the last day of the period
and then annualized.
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 3
<PAGE> 5
Perspective & Performance(1) (Cont.)
LARGER COMPANY STOCK FUND (LCSF)
A fund of funds investing in funds that invest in large and larger mid-cap
stocks with the objective of Growth with some Income. Individual stocks may be
owned.
Stocks struggled in the second quarter. Inflation/interest rate worries and
concerns over high valuations caused a significant correction, especially in
technology and Internet stocks. In some ways this looks healthy. Many stocks had
surged ahead of reasonable valuations. Had they continued, a larger fall would
have been likely with much larger damage. As it is, a better broad base support
of stocks may be building. Barring a significant interest rate hike or an excess
slowdown of the economy, there is a good chance of stocks ending the year on a
positive note. However, we expect continued volatility. The changes made in the
LCSF are paying off with improved performance in 2000.
A word is in order regarding income. While the prospectus objective of this
fund is "growth with some income", a number of factors have reduced or, as in
the case of 1999, eliminated any ordinary income dividends and short-term gains
in LCSF. Last year, we made a conscious decision to liquidate some positions
before they distributed significant dividends. This allowed us to distribute
long-term capital gains instead of ordinary income, which would be taxed at
higher rates. We think our investors benefited significantly from this decision.
This year, high market valuations have lowered stock market dividend ratios to
historically low levels. After expenses, this means the income portion of the
LCSF may continue to be low for the foreseeable future.
<TABLE>
<CAPTION>
Quarter Year-to-Date Three Year Since Public Since Private
Performance for Periods Ending Period 1/1/00 One Year Avg. Annual Inception Inception
Ending 6/30/00(1) 6/30/00 to 6/30/00 Return Return(2) (5/28/97)(2) (4/4/96)(2)
<S> <C> <C> <C> <C> <C> <C>
LCSF TOTAL RETURN -1.9% 2.6% 7.7% 13.5% 14.5% 15.5%
S&P500 Index -2.7% -0.4%* 7.3% 19.7% 20.7% 22.6%
Dow Jones Ind Avg -4.0% -8.5%* -3.4% 12.7% 13.7% 17.5%
New York Stock Exchg. Comp. -0.7% -1.1%* -0.8% 11.6% 13.0% 15.3%
MornStar Gr & Inc Fds Avg -2.5% -0.7% 1.8% 13.0% 14.4%* 16.6%*
</TABLE>
<TABLE>
<S> <C>
Portfolio Turnover .................................. 13.2%
</TABLE>
(1) Total returns include reinvested dividends and gains. (2) The Fund's public
registration with the S.E.C. was effective 5/28/97. The Fund was in existence
from 4/4/96 to 5/28/97 as a private trust. There were no operational changes as
a result of public inception. * Does not include dividends
SMALLER COMPANY STOCK FUND (SCSF)
A fund of funds investing in funds that invest in small, micro-cap and
smaller mid-cap stocks with an objective of long term growth. Individual stocks
may be owned.
Small companies continue to perform a bit better than large companies.
However it has been accompanied by significant volatility. We expect more
volatility, but continue to believe the prospects for small companies are
reasonably good. We are pleased to report that the SCSF has been ranked in
the top 15% of all funds in Morningstar's Small Blend category for both one
and three year periods.
<TABLE>
<CAPTION>
Quarter Year-to-Date Three Year Since Public Since Private
Performance for Periods Ending Period 1/1/00 One Year Avg. Annual Inception Inception
Ending 6/30/00(1) 6/30/00 to 6/30/00 Return Return(2) (5/28/97)(2) (4/4/96)(2)
<S> <C> <C> <C> <C> <C> <C>
SCSF TOTAL RETURN -3.1% 7.3% 33.3% 16.0% 17.3% 14.5%
Russell 2000 Index -3.8% 3.0% 14.3% 10.6% 12.1% 12.2%
MornStar Small Co Fds Avg -1.0% 8.2% 17.8% 10.1% 13.1% 14.0%
</TABLE>
<TABLE>
<S> <C>
Portfolio Turnover .................................. 0.00%
</TABLE>
(1) Total returns include reinvested dividends and gains. (2) The Fund's public
registration with the S.E.C. was effective 5/28/97. The Fund was in existence
from 4/4/96 to 5/28/97 as a private trust. There were no operational changes as
a result of public inception.
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 4
<PAGE> 6
Perspective & Performance(1) (Cont.)
INTERNATIONAL FUND (INTF)
A fund of funds investing in funds that primarily invest in foreign stocks,
including emerging markets. Individual stocks may be owned.
International markets have struggled this year after a strong 1999. We
continue to see good potential overseas and think there is a good possibility
that foreign markets will recover by the end of the year.
The INTF has performed acceptably so far in 2000, but we are not satisfied
that the holdings are where we had hoped they would be. We have been gradually
making changes in an effort to improve the Fund's positions.
<TABLE>
<CAPTION>
Quarter Year-to-Date Three Year Since Public Since Private
Performance for Periods Ending Period 1/1/00 One Year Avg. Annual Inception Inception
Ending 6/30/00(1) 6/30/00 to 6/30/00 Return Return(2) (5/28/97)(2) (4/4/96)(2)
<S> <C> <C> <C> <C> <C> <C>
INTF TOTAL RETURN -4.1% -4.9% 16.4% 7.5% 8.5% 10.9%
EAFE. Index -1.6% -1.7% 20.0% 11.1% 12.1% 11.2%
MornStar Foreign Fds Avg -6.0% -4.0% 26.6% 11.5% 13.7% 14.0%
MornStar Div. Emerg. Mkts. Fds -11.9% -8.8% 16.5% -3.7% -0.6% 3.4%
</TABLE>
<TABLE>
<S> <C>
Portfolio Turnover .................................. 4.5%
</TABLE>
(1) Total returns include reinvested dividends and gains. (2) The Fund's public
registration with the S.E.C. was effective 5/28/97. The Fund was in existence
from 4/4/96 to 5/28/97 as a private trust. There were no operational changes as
a result of public inception.
ALTCAT (ALTERNATIVE CATEGORIES) FUND (ACF)
A multi-asset global fund of funds that invest in assets hat offer opportunities
for growth.
We are pleased to report that Morningstar ranked the ACF in the top 20% of
all funds in the Mid-cap Value Funds category for the past 12 months. If
compared to the Morningstar funds having a Multi-Asset Global objective, it was
in the top 12% for the past 12 months ending 6/30/00. (As of this writing, the
ACF was the #1 Fund in this category year-to-date through July 31.)
<TABLE>
<CAPTION>
Quarter Year-to-Date Three Year Since Public Since Private
Performance for Periods Ending Period 1/1/00 One Year Avg. Annual Inception Inception
Ending 6/30/00(1) 6/30/00 to 6/30/00 Return Return(2) (5/28/97)(2) (4/4/96)(2)
<S> <C> <C> <C> <C> <C> <C>
ACF TOTAL RETURN 1.0% 10.1% 21.0% 9.3% 10.2% 9.6%
MornStar Multi-Asset Global Fds -1.3% 0.7% 13.8% 8.2% 10.1% 10.4%
</TABLE>
<TABLE>
<S> <C>
Portfolio Turnover .................................. 2.6%
</TABLE>
(1) Total returns include reinvested dividends and gains. (2) The Fund's public
registration with the S.E.C. was effective 5/28/97. The Fund was in existence
from 4/4/96 to 5/28/97 as a private trust. There were no operational changes as
a result of public inception.
Notes regarding performance: Total Return assumes dividends and/or capital gains
reinvested. STAAR Fund returns are based on Net Asset Value. Indexes such as the
Dow Jones Industrial, EAFE and Lehman Bros. Bond indexes are unmanaged, and
therefore have little or no expenses. Morningstar mutual fund averages reflect
net returns after expenses with dividend and capital gain distributions
reinvested. Performance numbers are quoted directly or derived from data
published in the Wall St. Journal ands other public sources and may be
preliminary data. Past performance is no guarantee of future results. Investment
returns and principal values fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 5
<PAGE> 7
INTERMEDIATE BOND FUND
PORTFOLIO VALUATION AS OF 6/30/00
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL UNREALIZED
POSITION AMOUNT UNIT COST PRICE COST VALUE PERCENT GAIN/(LOSS)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CASH & EQUIVALENTS 101,517 1.00 1.00 101,517 101,517 7.3% 0
--------------------------------------------------------------------------------
Subtotal 101,517 101,517 7.3% 0
INTERMEDIATE BONDS
US TREASURY OBLIGATIONS
US Treasury Note 6.375 due 8/15/02 20,000 100.45 99.84 20,089 19,969 1.4% (120)
US Treasury Note 6.5 due 5/15/05 20,000 100.19 101.09 20,038 20,219 1.5% 181
US Treasury Note 5.5 due 2/15/08 20,000 100.42 95.75 20,084 19,150 1.4% (934)
US Treasury Note 5.375 due 2/15/01 60,000 101.21 99.34 60,725 59,606 4.3% (1,119)
US Treasury Note 5.5 due 12/31/00 50,000 102.69 99.53 51,344 49,766 3.6% (1,578)
US Treasury Note 5.25 due 5/15/04 30,000 97.75 96.47 29,325 28,941 2.1% (384)
--------------------------------------------------------------------------------
Subtotal 201,604 197,650 14.2% (3,954)
GOVERNMENT AGENCY OBLIGATIONS
Fedl Hm Ln Mtg Corp Deb 6.49 due 12/19/05 50,000 100.70 96.19 50,350 48,094 3.5% (2,255)
Fedl Hm Ln Mtg Corp Deb 6.25 due 6/24/08 60,000 100.00 92.84 60,000 55,706 4.0% (4,294)
Fedl Hm Ln Mtg Corp Deb 6.125 7/24/08 30,000 93.75 92.19 28,125 27,656 2.0% (469)
Fedl Hm Ln Bank Bond 6.17 due 7/30/02 20,000 102.22 98.59 20,443 19,719 1.4% (724)
Fedl Home Ln Bank Bond 5.925 due 8/14/03 40,000 100.98 96.75 40,391 38,700 2.8% (1,691)
Fedl Home Ln Bank Bond 5.8 due 11/04/05 60,000 96.63 93.91 57,975 56,344 4.1% (1,631)
Fedl Home Ln Bank Bond 6.05 2/24/06 40,000 95.25 94.50 38,100 37,800 2.7% (300)
Fedl Home Ln Bank Bond 6.18 5/29/03 50,000 98.50 97.53 49,250 48,766 3.5% (485)
Fedl Nat'l Mtg Assoc. 7.32 due 5/03/06 25,000 100.00 98.00 25,000 24,500 1.8% (500)
Fedl Nat'l Mtg Assoc. 7.37 due 3/09/07 35,000 103.12 97.80 36,092 34,230 2.5% (1,862)
Fedl Nat'l Mtg Assoc. 5.39 due 11/5/03 75,000 99.56 95.12 74,672 71,340 5.1% (3,332)
Fedl Nat'l Mtg Assoc. 6.1 4/24/03 25,000 98.00 97.49 24,500 24,373 1.8% (128)
Fedl Nat'l Mtg Assoc. 6.03 2/2/09 20,000 92.75 91.80 18,550 18,360 1.3% (190)
TVA Pwr Bds 1993 Ser 6.125 due 7/15/03 20,000 97.00 96.75 19,400 19,350 1.4% (50)
TVA Pwr Bds 1995 Ser 6.375 due 6/15/05 13,000 97.25 97.32 12,643 12,652 0.9% 8
--------------------------------------------------------------------------------
Subtotal 555,490 537,589 38.7% (17,901)
CORPORATE OBLIGATIONS
American General Corp. 6.25 3/15/03 50,000 103.07 96.88 51,537 48,440 3.5% (3,097)
Columbia/HCA Healthcare 6.87 due 9/15/03 30,000 98.63 92.57 29,588 27,771 2.0% (1,817)
Ford Motor Cr 6.0 due 1/14/03 80,000 102.84 96.53 82,268 77,224 5.6% (5,044)
IBM Corp Nt Bk Entry 7.25 due 11/01/02 20,000 102.14 100.13 20,427 20,026 1.4% (401)
Lehman Brothers 6.625 due 2/05/06 50,000 97.07 92.85 48,534 46,425 3.3% (2,109)
Lehman Brothers 6.625 due 4/01/04 50,000 98.29 95.53 49,147 47,765 3.4% (1,382)
Mellon Financial Co. 6.0 due 3/01/04 40,000 100.09 95.43 40,036 38,172 2.7% (1,864)
Merrill Lynch & Co Nts 8.0 due 2/01/02 25,000 103.50 101.28 25,875 25,320 1.8% (555)
Merrill Lynch & Co Nts 5.5 due 2/12/04 45,000 100.00 93.53 45,000 42,089 3.0% (2,911)
Merrill Lynch & Co Nts 6.0 due 2/17/09 40,000 92.72 88.62 37,089 35,448 2.6% (1,640)
Morgan Stanley Nts 5.625 due 1/20/04 50,000 99.72 93.94 49,859 46,970 3.4% (2,889)
New England Tel. Co. 6.125 due 10/01/06 35,000 101.03 94.80 35,359 33,180 2.4% (2,179)
St. Paul Cos. 6.17 due 1/15/01 25,000 99.99 99.46 24,997 24,865 1.8% (132)
Sears Accept Corp 6.92 due 6/17/04 40,000 104.80 97.56 41,920 39,024 2.8% (2,896)
--------------------------------------------------------------------------------
Subtotal 581,634 552,719 39.8% (28,914)
=================================================
TOTALS 1,440,246 1,389,475 100% (50,769)
</TABLE>
Note: This portfolio valuation does not include accrued income and expanses.
Therefore, the total value shown is not the same as the net asset value.
BREAKDOWN BY GENERAL ASSET TYPE
[CHART APPEARS HERE]
Cash & Equivalents 7%
Corporate 40%
US Treasury & Gov Agency 53%
BREAKDOWN BY GENERAL RATING
(S&P and/or Moody's)
[CHART APPEARS HERE]
A Rated 26%
AA Rated 14%
AAA Rated 58%
BBB Rated 2%
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 6
<PAGE> 8
LONG TERM BOND FUND
PORTFOLIO VALUATION AS OF 6/30/00
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL UNREALIZED
POSITION AMOUNT UNIT COST PRICE COST VALUE PERCENT GAIN/(LOSS)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CASH & EQUIVALENTS 31,069 1.00 1.00 31,069 31,069 3.7% 0
Subtotal 31,069 31,069 3.7% 0
LONG TERM BONDS
US TREASURY OBLIGATIONS
US Treasury Note 5.625 due 2/15/06 10,000 92.70 96.97 9,270 9,697 1.2% 427
US Treasury Bond 7.25 due 5/15/16 75,000 105.59 110.03 79,194 82,523 9.8% 3,329
US Treasury Bond 7.25 due 8/15/22 20,000 100.81 112.19 20,163 22,438 2.7% 2,275
US Treasury Bond 6.25 due 8/15/23 15,000 237.86 234.79 35,680 35,219 4.2% (462)
US Treasury Bond 5.50 due 8/15/28 40,000 100.75 91.72 40,300 36,688 4.4% (3,612)
----------------------------------------------------------------------------
Subtotal 184,606 186,564 22.2% 1,957
GOVERNMENT AGENCY OBLIGATIONS
Fedl Nat'l Mtg Assoc. 6.37 due 2/25/14 35,000 89.50 90.65 31,325 31,728 3.8% 403
Fedl Nat'l Mtg Assoc. 5.62 due 2/25/02 20,000 98.13 98.06 19,625 19,612 2.3% (13)
Fedl Home Ln Bank Bond 5.73 due 9/04/08 25,000 92.56 91.13 23,141 22,781 2.7% (359)
Fedl Home Ln Mtg Corp 7.375 due 10/25/11 20,000 99.50 95.78 19,900 19,156 2.3% (744)
Fedl Home Ln Mtg Corp 6.85 due 5/14/13 35,000 100.28 92.63 35,099 32,419 3.9% (2,680)
Fedl Home Ln Mtg Corp 6.42 due 8/19/13 30,000 101.26 90.22 30,379 27,066 3.2% (3,313)
Fedl Home Ln Mtg Corp 7.405 due 4/19/06 50,000 99.17 98.56 49,586 49,282 5.9% (305)
Fedl Farm Cred Bk 6.9 due 9/08/15 40,000 101.95 97.29 40,780 38,916 4.6% (1,864)
----------------------------------------------------------------------------
Subtotal 249,835 240,959 28.7% (8,876)
CORPORATE OBLIGATIONS
Arkansas Power & Lt 7.0 due 9/08/15 25,000 103.50 88.47 25,875 22,118 2.6% (3,757)
Bankamerica Corp MTN 6.0 due 12/23/13 15,000 100.00 83.85 15,000 12,578 1.5% (2,422)
Bear Stearns Cos 7.625 due 2/01/05 40,000 99.69 98.55 39,876 39,420 4.7% (455)
Chase Manhattan Corp MTN 6.5 due 5/06/13 15,000 100.25 89.08 15,038 13,362 1.6% (1,676)
Citicorp 7.2 due 9/15/10 35,000 102.38 95.23 35,831 33,331 4.0% (2,501)
Disney Walt Co. MTN 7.75 due 9/30/11 20,000 100.00 100.40 20,000 20,080 2.4% 80
Ford Motor Credit MTN 7.0 9/20/10 40,000 101.00 93.03 40,400 37,212 4.4% (3,188)
General Electric Cap Crp. MTN 6.4 due 1/16/13 25,000 99.75 91.45 24,938 22,863 2.7% (2,075)
Gen Mtrs Accpt Corp Nts 7.1 due 3/15/06 20,000 99.31 98.46 19,861 19,692 2.3% (169)
Lehman Bros. Holdings 7.0 due 5/12/14 35,000 93.99 87.67 32,896 30,685 3.7% (2,211)
Merrill Lynch 6.33 due 2/25/14 50,000 99.40 89.16 49,700 44,580 5.3% (5,120)
Morgan Stanley Grp 7.45 due 7/03/12 15,000 100.00 95.59 15,000 14,339 1.7% (662)
So Western Bell Tel Deb 6.75 due 6/01/08 15,000 96.25 95.94 14,438 14,391 1.7% (47)
Xerox Credit Corp MTN 6.5 due 1/28/13 30,000 100.00 86.48 30,000 25,944 3.1% (4,056)
Xerox Credit Corp MTN 6.5 due 2/11/13 35,000 100.00 86.33 35,000 30,216 3.6% (4,785)
----------------------------------------------------------------------------
Subtotal 413,852 380,808 45.4% (33,042)
==========================================
TOTALS 879,362 839,400 100% (39,960)
</TABLE>
Note: This portfolio valuation does not include accrued income and expanses.
Therefore, the total value shown is not the same as the net asset value.
BREAKDOWN BY GENERAL ASSET TYPE
[CHART APPEARS HERE]
Cash & Equivalents 4%
Corporate 45%
US Treasury & Gov Agency 51%
BREAKDOWN BY GENERAL RATING
(S&P and/or Moody's)
[CHART APPEARS HERE]
A Rated 37%
AA Rated 7%
AAA Rated 56%
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 7
<PAGE> 9
LARGER COMPANY STOCK FUND
PORTFOLIO VALUATION AS OF 6/30/00
<TABLE>
<CAPTION>
UNREALIZED
POSITION SHARES UNIT COST PRICE COST VALUE PERCENT GAIN/(LOSS)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CASH & EQUIVALENTS
Putnam Money Market Fund A 645.50 1.00 1.00 646 646 0.0% 0
Firstar Treasury Money Market 134,920.87 1.00 1.00 134,921 134,921 4.8% 0
------------------------------------------------------------------------------
Subtotal 135,566 135,566 4.9% 0
U.S. LARGER CO. STOCK FUNDS
Bear Stearns S&P Stars A 11,302.11 23.44 36.38 264,874 411,171 14.7% 146,296
Fundamental Investors Fund 12,468.45 29.10 32.59 362,873 417,784 15.0% 54,910
Janus Twenty 2,857.33 66.53 77.22 190,106 220,643 7.9% 30,537
Putnam Fund For Growth & Income 13,317.68 18.94 17.98 252,292 239,452 8.6% (12,840)
Putnam Investors A 19,359.07 14.06 18.67 272,139 361,434 13.0% 89,295
Torray Fund 7,377.36 37.94 40.46 279,868 298,488 10.7% 18,620
------------------------------------------------------------------------------
Subtotal 1,622,152 1,948,971 69.8% 326,819
U.S. LARGER CO. STOCK UNIT TRUSTS
Peroni Top Ten Picks 2000 Series 21,832.12 11.45 14.15 250,000 308,925 11.1% 58,925
------------------------------------------------------------------------------
Subtotal 250,000 308,925 11.1% 58,925
U.S. MID-CAP LARGER CO. STOCK FUNDS
Mairs & Power Growth Fund 3,437.22 83.35 99.63 286,481 342,450 12.3% 55,969
Longleaf Partners 2,612.44 26.73 21.02 69,827 54,913 2.0% (14,913)
------------------------------------------------------------------------------
Subtotal 356,308 397,364 14.2% 41,055
===========================================
TOTALS 2,364,026 2,790,826 100% 426,799
</TABLE>
Note: This portfolio valuation does not include accrued income and expanses.
Therefore, the total value shown is not the same as the net asset value.
BREAKDOWN BY GENERAL ASSET TYPE
(Includes estimated cash positions of mutual funds owned
by the Fund)
[CHART APPEARS HERE]
Bonds 0%
Cash & Equivalents 6%
Domestic Stock 87%
Foreign Stock 6%
Other 1%
BREAKDOWN BY MANAGEMENT STYLE
(Does not include estimated cash positions of mutual
funds owned by the Fund)
[CHART APPEARS HERE]
Cash & Equivalents 5%
Large Cap Blend 24%
Large Cap Growth 23%
Large Cap Value 34%
Larger Mid-Cap Value 14%
Notes: Breakdown percentages are estimates based on information gathered from
prospectuses, quarterly reports and other sources, including Morningstar
Principia for Mutual Funds. Accuracy is not guaranteed.
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 8
<PAGE> 10
SMALLER COMPANY STOCK FUND
PORTFOLIO VALUATION AS OF 6/30/00
<TABLE>
<CAPTION>
UNREALIZED
POSITION SHARES UNIT COST PRICE COST VALUE PERCENT GAIN/(LOSS)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CASH & EQUIVALENTS
Franklin Money Fund A 1,292.61 1.00 1.00 1,293 1,293 0.0% 0
Firstar Treasury Money Market 107,778.00 1.00 1.00 107,778 107,778 3.8% 0
----------------------------------------------------------------------------
Subtotal 109,071 109,071 3.8% 0
U.S. SMALLER CO. STOCK MUTUAL FUNDS
Ivy US Emerging Growth Fund 10,405.76 28.47 49.18 296,267 511,755 17.9% 215,488
Franklin Small Cap Growth Fund I 8,205.93 23.23 49.07 190,654 402,665 14.1% 212,011
T Rowe Price New Horizons Fund 11,713.05 25.21 30.43 295,275 356,428 12.5% 61,153
Royce Opportunity Fund 48,469.80 7.25 8.51 351,538 412,478 14.4% 60,940
Putnam Capital Opportunities Fund A 28,916.19 8.73 11.08 252,433 320,391 11.2% 67,958
Acorn Fund 19,574.20 16.86 17.22 329,968 337,068 11.8% 7,100
----------------------------------------------------------------------------
Subtotal 1,716,135 2,340,785 81.9% 624,650
U.S. MICROCAP STOCK MUTUAL FUNDS
Franklin Microcap Value Fund I 20,226.23 18.82 18.18 380,647 367,713 12.9% (12,934)
RS MicroCap Growth Fund 1,472.95 27.16 27.54 40,000 40,565 1.4% 565
----------------------------------------------------------------------------
Subtotal 420,647 408,278 14.3% (12,369)
==========================================
TOTALS 2,245,853 2,858,134 100% 612,281
</TABLE>
Note: This portfolio valuation does not include accrued income and expanses.
Therefore, the total value shown is not the same as the net asset value.
BREAKDOWN BY GENERAL ASSET TYPE
(Includes estimated cash positions of mutual funds
owned by the Fund)
[CHART APPEARS HERE]
Bonds 0%
Cash & Equivalents 7%
Domestic Stock 88%
Foreign Stock 5%
BREAKDOWN BY MANAGEMENT STYLE
(Does not include estimated cash positions of mutual
funds owned by the Fund)
[CHART APPEARS HERE]
Cash & Equivalents 4%
Small Cap Blend 12%
Small Cap Growth 28%
Small Cap Value 27%
Smaller Mid-Cap Growth 18%
Smaller Mid-Cap Value 11%
Notes: Breakdown percentages are estimated based on information gathered from
prospectuses, quarterly reports and other sources, including Morningstar
Principia for Mutual Funds. Accuracy is not guaranteed.
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 9
<PAGE> 11
INTERNATIONAL FUND
PORTFOLIO VALUATION AS OF 6/30/00
<TABLE>
<CAPTION>
UNREALIZED
POSITION SHARES UNIT COST PRICE COST VALUE PERCENT GAIN/(LOSS)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CASH & EQUIVALENTS
Putnam Money Market Fund A 86,750.90 1.00 1.00 86,751 86,751 3.6% 0
Firstar Treasury Money Market 22,410.47 1.00 1.00 22,410 22,410 0.9% 0
-----------------------------------------------------------------------------
Subtotal 109,161 109,161 4.5% 0
INTERNATIONAL STOCK MUTUAL FUNDS
Bear Stearns International Equity A 3,245.95 26.19 23.92 85,000 77,643 3.2% (7,357)
Europacific Fund 8,299.91 31.61 41.62 262,392 345,442 14.2% 83,050
Federated Int'l Equity A 3,607.39 27.72 27.84 100,000 100,430 4.1% 430
Hotchkis & Wiley International Fund 6,899.24 22.56 27.33 155,661 188,556 7.8% 32,895
Ivy International Fund A 7,117.19 36.84 41.11 262,193 292,588 12.0% 30,395
Putnam International Growth A 15,398.40 19.62 29.92 302,151 460,720 18.9% 158,569
T Rowe Price International Fund 12,586.91 15.60 18.27 196,322 229,963 9.5% 33,641
Templeton Foreign Fund I 20,920.76 9.93 10.65 207,754 222,806 9.2% 15,052
Warburg & Pincus International Fund 7,688.56 22.21 24.41 170,800 187,678 7.7% 16,878
-----------------------------------------------------------------------------
Subtotal 1,742,274 2,105,826 86.6% 363,552
DEVELOPING MARKETS MUTUAL FUNDS
Pilgrim Worldwide Emerging Markets Fund 1,669.07 11.98 11.88 20,000 19,829 0.8% (171)
Templeton Developing Markets Trust I 15,084.59 14.15 13.12 213,500 197,910 8.1% (15,590)
-----------------------------------------------------------------------------
Subtotal 233,500 217,738 9.0% (15,762)
==========================================
TOTALS 2,084,935 2,432,726 100.0% 347,791
</TABLE>
Note: This portfolio valuation does not include accrued income and expanses.
Therefore, the total value shown is not the same as the net asset value.
BREAKDOWN BY GENERAL ASSET TYPE
(Includes estimated cash positions of mutual funds
owned by the Fund)
[CHART APPEARS HERE]
Bonds 1%
Cash & Equivalents 8%
Domestic Stock 1%
Foreign Emerging Mkts. 9%
Foreign Stock 80%
BREAKDOWN BY MANAGEMENT STYLE
(Does not include cash positions of mutual funds
owned by the Fund.)
[CHART APPEARS HERE]
Cash & Equivalents 4%
Large Cap Blend 27%
Large Cap Growth 31%
Large Cap Value 29%
Mid Cap Blend 1%
Mid Cap Value 8%
Notes: Breakdown percentages are estimates based on information gathered from
prospectuses, quarterly reports and other sources, including Morningstar
Principia for Mutual Funds. Accuracy is not guaranteed.
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 10
<PAGE> 12
ALTCAT FUND
PORTFOLIO VALUATION AS OF 6/30/00
<TABLE>
<CAPTION>
UNREALIZED
POSITION SHARES UNIT COST PRICE COST VALUE PERCENT GAIN/(LOSS)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CASH & EQUIVALENTS 69,735.37 1.00 1.00 69,735 69,735 7.0% 0
----------------------------------------------------------------------------
Subtotal 69,735 69,735 7.0% 0
US MID-CAP LARGER CO. STOCK MUTUAL FUNDS
Muhlenkamp Fund 1,870.15 39.30 46.41 73,495 86,794 8.8% 13,299
----------------------------------------------------------------------------
Subtotal 73,495 86,794 8.8% 13,299
GLOBAL SMALLER CO. STOCK MUTUAL FUNDS
Mutual Series Discovery Fund I 3,230.47 19.38 20.95 62,597 67,678 6.8% 5,082
SmallCap World Fund 2,650.54 40.31 40.93 106,852 108,487 11.0% 1,634
----------------------------------------------------------------------------
Subtotal 169,449 176,165 17.8% 6,716
ALTERNATIVE CATEGORIES
Franklin BioTech Discovery Fund I 1,075.47 74.66 80.75 80,290 86,844 8.8% 6,554
Franklin Gold Fund I 1,584.96 10.76 8.40 17,060 13,314 1.3% (3,746)
Franklin Real Estate Securities Fund I 2,337.17 14.41 14.67 33,675 34,286 3.5% 611
Franklin Natural Resources Fund I 3,906.89 14.87 16.71 58,087 65,284 6.6% 7,197
Ivy China Region A 11,229.77 8.50 9.22 95,409 103,539 10.5% 8,130
Templeton Latin America Fund 5,452.42 10.74 11.20 58,561 61,067 6.2% 2,507
Vanguard Energy 2,529.05 22.84 26.19 57,751 66,236 6.7% 8,485
Vanguard Health Care 916.01 84.04 119.57 76,985 109,527 11.1% 32,543
Invesco Technology II 1,252.12 42.92 93.30 53,736 116,823 11.8% 63,086
----------------------------------------------------------------------------
Subtotal 531,554 656,920 66.4% 125,366
=========================================
TOTALS 844,233 989,614 100.0% 145,381
</TABLE>
Note: This portfolio valuation does not include accrued income and expanses.
Therefore, the total value shown is not the same as the net asset value.
BREAKDOWN BY GENERAL ASSET TYPE
(Does not include cash positions of mutual funds owned
by the Fund. Therefore, actual cash will be higher.)
[CHART APPEARS HERE]
Biotech 9%
Cash & Equivalents 7%
Energy & Nat. Res. 14%
Global Flexibly Mgd 7%
Global Smaller Cos. 11%
Health Care 11%
Latin America 6%
Pacific Rim/China 10%
Prec. Metal/Mining 1%
Real Estate & Related 3%
Technology 12%
U.S. Fexibly Mgd 9%
BREAKDOWN BY MANAGEMENT STYLE
(Does not include cash positions of mutual funds
owned by the Fund.)
[CHART APPEARS HERE]
Cash & Equivalents 7%
Large Cap Blend 11%
Large Cap Growth 12%
Large Cap Value 9%
Mid Cap Blend 7%
Mid Cap Growth 10%
Mid Cap Value 33%
Small Cap Growth 11%
Notes: Breakdown percentages are estimated based on information gathered from
prospectuses, quarterly reports and other sources, including Morningstar
Principia for Mutual Funds. Accuracy is not guaranteed.
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 11
<PAGE> 13
STAAR INVESTMENT TRUST FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(unaudited)
<TABLE>
<CAPTION>
(000's omitted) IBF LTBF LCSF SCSF INTF ACF
<S> <C> <C> <C> <C> <C> <C>
ASSETS
------
Investments in Securities at Value Identified 1,390 839 2,791 2,858 2,433 990
Cash (not including money market funds) 0 0 0 0 0 0
Interest Receivable 20 12 0 0 0 0
----------------------------------------------------------------
Total Assets 1,410 851 2,791 2,858 2,433 990
----------------------------------------------------------------
LIABILITIES
-----------
Accounts Payable for Securities 0 0 0 0 0 0
Accounts Payable - Sr. Long-term Debt 0 0 0 0 0 0
Accounts Payable- Other (incl. Advisor, TTEE, 12b-1 Fees) 1 1 2 2 2 1
----------------------------------------------------------------
Total Liabilities 1 1 2 2 2 1
----------------------------------------------------------------
NET ASSETS 1,409 850 2,789 2,856 2,431 989
---------- ================================================================
Shares of Beneficial Interest Outstanding 141,565 83,524 197,341 192,260 181,611 72,726
----------------------------------------------------------------
Net Asset Value per Share 9.95 10.19 14.13 14.87 13.39 13.60
----------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED 6/30/00
<TABLE>
<CAPTION>
(000's omitted) IBF LTBF LCSF SCSF INTF ACF
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
-----------------
Mutual Fund Dividends (Including Money Market Funds) 1 1 10 4 6 3
Interest 43 28 0 0 0 0
------------------------------------------------------------
Total Income 44 29 10 4 6 3
EXPENSES
--------
Advisory Fees 4 3 11 12 10 3
Directors Fees 1 0 1 1 1 0
Taxes 0 0 0 0 0 0
Interest 0 0 0 0 0 0
Marketing Distribs: 12-b-1 0 0 0 0 0 0
Other 0 0 0 0 0 0
------------------------------------------------------------
Total Expenses 5 3 13 13 11 4
Net Investment Income 39 26 (3) (9) (5) (1)
--------------------- ------------------------------------------------------------
REALIZED & UNREALIZED APPRECIATION ON INVESTMENTS
-------------------------------------------------
Realized Long & Short Term Capital Gains (3) (1) 41 18 20 6
Unrealized Appreciation (Depreciation) 3 7 30 159 (130) 65
------------------------------------------------------------
Net Realized & Unrealized Appreciation (Depreciation) 0 6 71 177 (110) 71
NET INCREASE IN NET ASSETS FROM OPERATIONS 39 32 68 168 (115) 70
------------------------------------------ ============================================================
</TABLE>
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 12
<PAGE> 14
STAAR INVESTMENT TRUST FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
STATEMENT OF CHANGE IN NET ASSETS
FOR THE SIX MONTH PERIOD ENDED 6/30/00
<TABLE>
<CAPTION>
(000's omitted) IBF LTBF LCSF SCSF INTF ACF
<S> <C> <C> <C> <C> <C> <C>
Increase/(Decrease) in net Assets from Operations
-------------------------------------------------
Net Investment Income 39 26 (3) (9) (5) (1)
Net Realized gains of Investments (3) (1) 41 18 20 6
Unrealized Appreciation (Depreciation) of Investments 3 7 30 159 (130) 65
--------------------------------------------------------
Net Change from Ops 39 32 68 168 (115) 70
Distributions to Shareholders from:
-----------------------------------
Investment Income (41) (24) 0 0 0 0
Realized Long-Term gains 0 0 (40) 0 0 0
--------------------------------------------------------
Total Distributions (41) (24) (40) 0 0 0
Capital Share Transactions
--------------------------
Purchases 200 86 387 431 388 357
Redemptions (404) (75) (96) (23) (21) (8)
Reinvestment of Dividends and Distributions 41 24 40 0 0 0
--------------------------------------------------------
Net Increase in net assets from capital share transactions (163) 35 331 409 367 349
--------------------------------------------------------
Total Increase in Net Assets (165) 43 359 577 252 419
========================================================
Net Assets Beginning of Period 1,574 807 2,430 2,279 2,179 570
Net Assets End of Period 1,409 850 2,789 2,856 2,431 989
--------------------------------------------------------
</TABLE>
STATEMENT OF CHANGE IN CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 6/30/00
<TABLE>
<CAPTION>
(000's omitted) IBF LTBF LCSF SCSF INTF ACF
<S> <C> <C> <C> <C> <C> <C>
CASH PROVIDED BY OPERATING ACTIVITIES
-------------------------------------
Net Increase in Net Assets from Operations 39 32 68 168 (115) 70
Adjustments Required to reconcile to net assets provided
by operating activities
Unrealized (Appreciation) Depreciation of Investments (3) (7) (30) (159) 130
(Increase) Decrease in Interest Receivable 3 0 0 0 0 0
Increase/(Decrease) in Advisory / TTEE Fees Payable 1 (0) 0 0 0 0
Increase (Decrease) in Accounts Payable 0 0 (150) (25) 0 0
--------------------------------------------------
Net Cash Provided (Used) by Operating Activities 40 25 (112) (16) 15 5
CASH USED BY INVESTMENT ACTIVITIES
----------------------------------
Investments Purchased 0 (89) (748) (389) (538) (355)
Sales or Redemptions 215 66 340 0 110 23
--------------------------------------------------
Net Cash Provided (Used) by Investment Activities 215 (23) (408) (389) (428)
CASH PROVIDED BY FINANCING ACTIVITIES
-------------------------------------
Shareholder Contributions 241 110 427 431 388 357
Shareholder Redemptions (including amounts re-invested
in other Trust portfolios) (404) (75) (96) (22) (21) (8)
Dividends Reinvested By Shareholders (41) (24) (40) 0 0 0
Cash Dividends Paid Out to Shareholders 0 0 0 0 0 0
--------------------------------------------------
Net Cash Provided (Used) by Financing Activities (204) 11 291 409 367 349
INCREASE/(DECREASE) IN CASH DURING PERIOD 51 12 (229) 3 (46) 22
----------------------------------------- ==================================================
Cash Balance, Beginning of Period 51 18 365 105 155 48
Cash Balance, End of Period 102 31 136 109 109 70
--------------------------------------------------
</TABLE>
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 13
<PAGE> 15
STAAR INVESTMENT TRUST
SUPPLEMENTARY INFORMATION -- SELECTED PER SHARE DATA AND RATIOS
Period from May 28, 1997 through June 30, 2000
<TABLE>
<CAPTION>
IBF LTBF
PER SHARE DATA 1/1/00- 1/1/99- 1/1/98- 5/28/97- 1/1/00- 1/1/99- 1/1/98- 5/28/97-
-------------- ------- ------- ------- -------- ------- ------- ------- --------
6/30/00 12/31/99 12/31/98 12/31/97 6/30/00 12/31/99 12/31/98 12/31/97
------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning Of Period 9.96 10.45 10.22 $9.97 10.09 11.16 10.81 $10.07
---------------------------------------------------------------------------------------
Net Investment Income 0.27 0.54 0.57 0.33 0.31 0.60 0.63 0.37
Net Realized & Unrealized Gains 0.01 (0.49) 0.19 0.21 0.09 (1.07) 0.30 0.78
---------------------------------------------------------------------------------------
Total Income from Operations 0.28 0.05 0.76 0.54 0.40 0.46 0.93 1.15
Distributions from Net Investment Income (0.29) (0.48) (0.51) (0.28) (0.30) (0.56) (0.58) (0.41)
Distributions from Net Realized Gains 0.00 0.00 (0.02) (0.01) 0.00 (0.01) 0.00 0.00
---------------------------------------------------------------------------------------
Total Distributions to Shareholders (0.29) (0.48) (0.53) (0.29) (0.30) (0.57) (0.58) (0.41)
Net Asset Value End of Period 9.95 9.96 10.45 $10.22 10.19 10.09 11.16 $10.81
=======================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Total Return 2.83% (0.14)% 7.41% 6.44% 3.89% (4.53)% 8.63% 11.41%
===================================================================================================================================
RATIOS
------
Net Expenses to Daily Avg. Net Assets* 0.72% 0.72% 0.58% 0.58% 0.81% 0.81% 0.69% 0.70%
Net Investment Income to Avg. Net Assets 2.73% 5.28% 5.48% 3.26% 3.07% 5.61% 5.70% 3.54%
Portfolio Turnover Rate 0.00% 11.85% 22.54% 6.78% 7.84% 4.10% 6.40% 0.00%
NET ASSETS, END OF PERIOD
-------------------------
(000's omitted) 1,409 1,574 1,154 622 850 807 598 339
=======================================================================================
Above ratios are after effect of 2000YTD 1999 1998 1997 2000YTD 1999 1998 1997
------- ---- ---- ---- ------- ---- ---- ----
Advisory fees waived as shown to the right: $0.00% $0.00% $0.13% $0.13% $0.00% $0.00% $0.12% $0.12%
</TABLE>
<TABLE>
<CAPTION>
LCSF
PER SHARE DATA 1/1/00- 1/1/99- 1/1/98- 5/28/97-
-------------- ------- ------- ------- --------
6/30/00 12/31/99 12/31/98 12/31/97
------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Asset Value Beginning Of Period 13.98 12.99 12.16 $11.66
---------------------------------------------
Net Investment Income (0.02) (0.02) 0.03 0.15
Net Realized & Unrealized Gains 0.39 2.06 1.56 1.39
---------------------------------------------
Total Income from Operations 0.37 2.04 1.59 1.54
Distributions from Net Investment Income 0.00 0.00 (0.04) (0.13)
Distributions from Net Realized Gains (0.22) (1.11) (0.72) (0.91)
---------------------------------------------
Total Distributions to Shareholders (0.22) (1.11) (0.76) (1.04)
Net Asset Value End of Period 14.13 13.98 12.99 $12.16
=============================================
--------------------------------------------------------------------------------------------
Total Return 2.66% 16.13% 13.10% 13.21%
============================================================================================
RATIOS
------
Net Expenses to Daily Avg. Net Assets* 0.99% 0.99% 1.00% 0.25%
Net Investment Income to Avg. Net Assets -0.11% -0.13% 0.23% 1.81%
Portfolio Turnover Rate 13.16% 37.02% 30.21% 7.84%
NET ASSETS, END OF PERIOD
-------------------------
(000's omitted) 2,789 2,430 1,852 1,276
=============================================
Above ratios are after effect of 2000YTD 1999 1998 1997
------- ---- ---- ----
Advisory fees waived as shown to the right: $0.00% $0.00% $0.00% $0.25%
</TABLE>
<TABLE>
<CAPTION>
SCSF INTF
PER SHARE DATA 1/1/00- 1/1/99- 1/1/98- 5/28/97- 1/1/00- 1/1/99- 1/1/98- 5/28/97-
-------------- ------- ------- ------- -------- ------- ------- ------- --------
6/30/00 12/31/99 12/31/98 12/31/97 6/30/00 12/31/99 12/31/98 12/31/97
------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning Of Period 13.86 11.45 11.45 10.32 14.08 10.60 10.50 11.73
----------------------------------------------------------------------------
Net Investment Income (0.05) (0.09) (0.05) (0.02) (0.03) 0.05 0.07 0.12
Net Realized & Unrealized Gains 1.06 3.31 0.38 1.47 (0.66) 4.06 0.31 (0.78)
----------------------------------------------------------------------------
Total Income from Operations 1.01 3.23 0.33 1.45 (0.69) 4.10 0.38 (0.66)
Distributions from Net Investment Income 0.00 0.00 0.00 0.00 0.00 (0.05) (0.08) (0.10)
Distributions from Net Realized Gains 0.00 (1.11) (0.33) (0.32) 0.00 (0.58) (0.20) (0.47)
----------------------------------------------------------------------------
Total Distributions to Shareholders 0.00 (1.11) (0.33) (0.32) 0.00 (0.63) (0.28) (0.57)
Net Asset Value End of Period 14.87 13.86 11.45 11.45 13.39 14.08 10.60 10.50
============================================================================
-------------------------------------------------------------------------------------------------------------------------
Total Return 7.27% 30.78% 2.89% 13.92% -4.90% 38.76% 3.64% (5.64)%
=========================================================================================================================
RATIOS
------
Net Expenses to Daily Avg. Net Assets* 0.98% 0.99% 0.99% 1.01% 0.99% 0.99% 0.99% 0.70%
Net Investment Income to Avg. Net Assets -0.36% -0.73% (0.47)% (0.22)% -0.24% 0.39% 0.65% 1.04%
Portfolio Turnover Rate 0.00% 33.53% 6.45% 4.04% 4.51% 13.12% 2.30% 0.00%
NET ASSETS, END OF PERIOD
-------------------------
(000's omitted) 2,856 2,279 1,177 1,177 2,431 2,179 1,608 1,126
----------------------------------------------------------------------------
Above ratios are after effect of 2000YTD 1999 1998 1997 2000YTD 1999 1998 1997
-------------------------------- ------- ---- ---- ---- ------- ---- ---- ----
Advisory fees waived as shown to the right: $0.00% $0.00% $0.00% $0.00% $0.00% $0.00% $0.00% $0.35%
</TABLE>
<TABLE>
<CAPTION>
ACF
PER SHARE DATA 1/1/00- 1/1/99- 1/1/98- 5/28/97-
-------------- ------- ------- ------- --------
6/30/00 12/31/99 12/31/98 12/31/97
------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Asset Value Beginning Of Period 12.35 9.67 10.53 10.68
-------------------------------------------
Net Investment Income (0.01) 0.06 0.13 0.11
Net Realized & Unrealized Gains 1.26 2.91 (0.73) (0.16)
-------------------------------------------
Total Income from Operations 1.25 2.97 (0.60) (0.05)
Distributions from Net Investment Income 0.00 (0.06) (0.13) (0.09)
Distributions from Net Realized Gains 0.00 (0.25) (0.13) (0.01)
-------------------------------------------
Total Distributions to Shareholders 0.00 (0.31) (0.26) (0.10)
Net Asset Value End of Period 13.60 12.35 9.67 10.53
===========================================
--------------------------------------------------------------------------------------------
Total Return 10.12% 30.86% -5.75% (0.44)%
============================================================================================
RATIOS
------
Net Expenses to Daily Avg. Net Assets* 0.98% 0.99% 0.99% 0.80%
Net Investment Income to Avg. Net Assets -0.08% 0.51% 1.24% 1.00%
Portfolio Turnover Rate 2.62% 4.15% 0.02% 2.74%
NET ASSETS, END OF PERIOD
-------------------------
(000's omitted) 989 570 374 307
-------------------------------------------
Above ratios are after effect of 2000YTD 1999 1998 1997
-------------------------------- ------- ---- ---- ----
Advisory fees waived as shown to the right: $0.00% $0.00% $0.00% $0.11%
</TABLE>
STAAR Investment Trust Semi-Annual Report 6/30/00 Page 14
<PAGE> 16
[STAAR Investment Trust Logo]
OFFICES OF THE TRUST
604 McKnight Park Dr.
Pittsburgh, PA 15237
INVESTMENT ADVISOR
STAAR Financial Advisors, Inc.
604 McKnight Park Dr.
Pittsburgh, PA 15237
E-MAIl: [email protected]
WEB SITE: www.staarinvest.com
TRANSFER AGENT FOR
SHAREHOLDER ACCOUNTS
STAAR Financial Advisors, Inc.
604 McKnight Park Dr.
Pittsburgh, PA 15237
COUNSEL
Alan Lefkowitz, Esq.
2488 Mt. Royal Blvd.
Pittsburgh, PA 15222
INDEPENDENT AUDITORS
Carson & Co.
201 Village Commons,
Sewickley, PA 15143
TRUSTEES
Ronald G. Benson
Coraopolis, PA
Business Consultant
Regional Coordinator, Fellowship
of Companies for Christ,
International
Jeffrey A. Dewhirst
Sewickley, PA
Investment Banker
Thomas J. Smith
Sewickley, PA
Owner/President, CapMasters
John H. Weisbrod
Cranberry, PA
Former President, Sea Breeze
Laboratories, Inc.
J. Andre Weisbrod
Wexford, PA
President, STAAR Financial
Advisors, Inc.
VISIT OUR WEB SITE:
www.staarinvest.com
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The Funny File
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