IMPACT MANAGEMENT
INVESTMENT TRUST
IMPACT TOTAL RETURN
PORTFOLIO
F/K/A
IMPACT MANAGEMENT
GROWTH PORTFOLIO
ANNUAL REPORT
TO
SHAREHOLDERS
SEPTEMBER 30, 1999
<PAGE>
TABLE OF CONTENTS
-----------------
SECTION PAGE
- ------- ----
A Message From Your Chairman 1
Report on Shareholder Vote 2
Fund Performance 3
Financial Highlights 4
Statement of Assets and Liabilities 5
Schedule of Investments in Securities 6-7
Statement of Operations 8
Statements of Changes in Net Assets 9
Notes to Financial Statements 10-11
Independent Auditors' Reports 12-13
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
A MESSAGE FROM YOUR CHAIRMAN
----------------------------
Dear Shareholder,
As expected, 1998 produced the four-year bottom, two years prior to the
Presidential Election, which is consistent with the pattern of the past century.
Since the bottom was reached in October of last year the market averages have
been impressive but the underlying condition of those same averages has not been
so impressive. In fact, if you were to look back over the last hundred years of
statistical information you would find that there are really only two time
periods in which the condition that exists today can be compared to conditions
that existed previously. Those two time periods are the 1920's and the 1970's.
Both of those periods ultimately saw the stock market go through major
adjustments to the downside. Market historians point to this fact and conclude
that the end must be drawing very near for this bull market. In fact, we
recently went through a period in which a barrage of professional investors who
proclaimed that we are now in a bear market appeared in the media and in some
cases really shook up investors.
We would agree that the market, in some ways has been in a bear market for
some time now. However, it is important to remember where we are in the
four-year cycle and recognize that, in our opinion, the likelihood of the market
slipping into a prolonged downward adjustment in stock prices is very low at
this time. Therefore, we continue to be more bullish than bearish right now and
our percentage of assets that are invested in stocks in the Impact Total Return
Portfolio reflects just that.
Concerns over Y2K will likely give the market some continued reason for
more substantial volatility but there is increasing sentiment that Y2K will
likely be more of an experience of isolated instances of inconvenience rather
than a catastrophic global event.
We look for this market to eventually die of old age rather than some
unexpected, instantaneous failure of health. Therefore, we believe that the
negative patterns that exist in the market will likely continue and new evidence
of an old, very tired and dying bull market will emerge.
Sincerely,
Charles R. Clark
Chairman - Impact Management Investment Trust
1
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
REPORT ON SHAREHOLDER VOTE
--------------------------
A special meeting of shareholders was held on April 19, 1999 for
shareholders of record as of March 9, 1999 for the purpose of considering and
acting upon the following matters:
1. To approve or disapprove a sub-investment advisory agreement between
Jordan American Holdings, Inc. (the Portfolio's current investment
advisor), Schneider Capital Management Corporation and the Trust to
delegate to the Sub-Advisor certain of the duties the Advisor performs
under the Advisory Agreement;
2. To approve or disapprove a change in the Portfolio's investment
objective from seeking capital appreciation to providing maximum
long-term total return; and
3. To transact such other business as may properly come before the
meeting.
The number of shares for, against, and withheld, and the number of
abstentions on each matter were as follows:
<TABLE>
<CAPTION>
For Against Abstentions Withheld
--- ------- ----------- --------
<S> <C> <C> <C> <C>
1. To approve the sub-investment
advisory agreement 557,358.614 -0- 2,222.320 376,266.016
2. To approve the change in the
investment objective 555,423.774 1,934.840 2,222.320 376,266.016
</TABLE>
Based on the results noted above, the sub-investment advisory agreement
between Jordan American Holdings, Inc., Schneider Capital Management Corporation
and the Trust was approved and the change in the Portfolio's investment
objective was approved. There was no other business to come before the meeting.
2
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
FUND PERFORMANCE
FOR FISCAL YEAR FROM OCTOBER 1, 1998 THROUGH SEPTEMBER 30, 1999
---------------------------------------------------------------
MANAGEMENT'S REPORT ON FUND PERFORMANCE
As the world economy stabilized during the Summer of 1999, interest rates rose
as fears of inflation were rekindled by the continued rapid expansion of the
U.S. economy. The Federal Reserve raised interest rates twice and investors
began to fear a continual tightening by the Fed that could slow or reverse the
U.S. economy. That fear led to a broad decline in stock performance that reached
nearly all major stock indexes. Schneider Capital Management ("SCM)' commenced
as sub-advisor to the Fund on May 2, 1999. SCM focuses on identifying companies
that it believes are undervalued and in which positive change is taking place
that has not yet been recognized by the stock market and its investors. That
strategy was coupled with The Fund's Investment Advisor, Jordan American
Holdings, Inc. keeping the Fund's assets in a moderately defensive position
throughout the five month period ended September 30, 1999. Although the fears of
investors climaxed in September and early October which resulted a negative
return for the five months ended September 30, 1999, the Fund outperformed the
Russell 1000 Value Index by more than 3% for that same time period. The Fund
ended the year with an 11.5% return. Impact Total Return Fund's fiscal year 2000
is the year leading up to the Presidential Election. This would suggest that
though there is increased volatility in the U.S. stock market and it is in a
very old and tired bull market condition, probabilities strongly favor that the
market will not likely enter into a prolonged declining trend in the year ahead.
Growth of a $10,000 Investment
[GRAPHIC OMITTED]
9/30/97 9/30/98 9/30/99
------- ------- -------
Impact Total Return $10,000 $ 8,407 $ 9,374
Russell 1000 Value Index $10,000 $10,359 $12,298
Russell 2000 Index $10,000 $ 8,100 $ 9,645
S&P 500 Index $10,000 $10,900 $13,925
The graph above compares the initial and subsequent account values at the fiscal
years ended September 30, 1998 and 1999 of the Fund, in relation to the S&P 500
Index, The Russell 2000 Index and the Russell 1000 Value Index. Assumes a
$10,000 initial investment at October 1, 1997. Past performance is not
indicative of future results.
- ------------------------------------------ The table to the left provides the
Total Return as of 9/30/99 average annual total return for the
- ------------------------------------------ fiscal year of the Fund and since
Total Return inception in relation to the S&P
- ------------------------------------------ 500 Index, the Russell 2000 Index
Since and the Russell 1000 Value Index.
Category 1 Year Inception* *Inception - July 1, 1997 Past
- ------------------------------------------ performance does not predict future
Impact Total Return 11.5% -3.1% results. Investment return and
- ------------------------------------------ principal value will fluctuate so
Russell 1000 Value Index 18.7% 14.8% that a investor's shares may be
- ------------------------------------------ worth more or less than the
Russell 2000 Index 19.1% 5.2% original cost. All returns assume
- ------------------------------------------ reinvestment of dividends.
S&P 500 Index 27.8% 21.1%
- ------------------------------------------
3
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
FINANCIAL HIGHLIGHTS
--------------------
<TABLE>
<CAPTION>
YEAR Year June 17,
ENDED Ended 1997+ to
SEPTEMBER 30, September 30, September 30,
1999 1998 1997
------------ ------------ ------------
PER SHARE DATA*
<S> <C> <C> <C>
Investment income $ .26 $ .29 $ .01
Expenses (.22) (.21) (.01)
------------ ------------ ------------
Net investment income .04 .08 .00
Distributions from net investment income (.08) (.01) .00
Net realized and unrealized gain (loss) on investments .86 (1.66) (.08)
Distributions from realized gains on investments (.69) .00 .00
------------ ------------ ------------
Net increase (decrease) in net asset value .13 (1.59) (.08)
Net asset value:
Beginning of period 8.33 9.92 10.00
------------ ------------ ------------
End of period $ 8.46 $ 8.33 $ 9.92
============ ============ ============
RATIOS AND SUPPLEMENTAL DATA
Total return# 11.50% (15.93)% (.80)%^
Ratio of expenses to average net assets# 2.47% 2.25% 2.25%t
Ratio of net investment income to average net assets# 35.42% 0.88% 0.00%t
Portfolio turnover rate 254.79% 221.45% 0.00%t
Average commission rate paid $ .0612 $ .1296 $ .1437
Net assets, end of period $ 6,270,819 $ 3,925,928 $ 501,758
Shares of beneficial interest outstanding, end of period 741,369 471,512 50,567
Number of shareholder accounts, end of period 156 136 17
</TABLE>
- ---------------------
+ Commencement of operations.
* Selected data for a share of beneficial interest outstanding throughout each
period.
^ Not annualized
t Annualized
# Excludes administrative fee and account closing fee charged directly to
shareholder accounts (see Note 4 to financial statements).
The accompanying notes are an integral part of this statement.
4
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999
------------------
ASSETS
Investments in securities, at value -
identified cost $6,840,248 $ 6,193,551
Cash 553,197
Dividends and interest receivable 20,677
------------
TOTAL ASSETS 6,767,425
------------
LIABILITIES
Payable for investment securities purchased 481,520
Investment advisory fee payable 7,272
Distribution expenses payable 5,778
Administrative fee payable 2,036
------------
TOTAL LIABILITIES 496,606
------------
NET ASSETS $ 6,270,819
============
NET ASSETS CONSIST OF:
Accumulated net investment loss-net of distributions $ (6,529)
Accumulated net realized gain 309,515
Net unrealized depreciation (646,697)
Paid-in capital applicable to 741,369 no par value
shares of beneficial interest outstanding;
unlimited number of shares authorized 6,614,530
------------
NET ASSETS 6,270,819
------------
NET ASSET VALUE PER SHARE $ 8.46
============
The accompanying notes are an integral part of this statement.
5
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
SCHEDULE OF INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1999
------------------
SHARES VALUES
------ ------
CONVERTIBLE BONDS-4.1% OF NET ASSETS
Consumer Products
Asia Pulp & Paper Company Conv. (cost $335,736) $ 258,787
----------
COMMON STOCKS-94.2%
Consumer Products-18.7%
Archer-Daniels-Midland Co. 10,500 $ 127,969
Matsushita Electric Industrial Co. Ltd. 500 104,500
Pentair, Inc. 9,400 377,175
Suiza Foods Corporation* 3,000 112,500
Tate & Lyle PLC 11,000 271,015
Tupperware Corporation 9,000 182,250
Computers & Technology-14.6%
Arrow Electronics, Inc.* 16,500 290,813
Ikon Office Solutions 13,000 138,938
Micron Technology, Inc. 5,900 392,719
Seagate Technology, Inc.* 3,000 92,437
Energy and Utilities-12.2%
Edison International 5,000 121,563
MidAmerican Energy Holdings Company* 3,000 88,500
Niagara Mohawk Holdings, Inc.* 10,000 154,375
Union Pacific Resources Group, Inc. 10,000 160,625
Valero Energy Corporation 7,000 134,750
Western Resources, Inc. 5,000 106,875
Insurance-10.1%
Aetna Inc. 4,200 206,850
Conseco, Inc. 9,000 173,813
Foundation Health Systems, Inc.* 20,000 188,750
Fremont General Corporation 7,000 66,500
Basic Materials-8.7%
Cameco Corporation 5,000 92,187
Eastman Chemical Company 4,000 160,000
International Paper 2,000 96,125
Smurfit-Stone Container Corporation* 9,000 194,625
Services-8.7%
Kmart Corporation 10,000 116,875
Nabors Industries, Inc.* 14,500 362,500
Republic Services, Inc.* 6,000 65,250
The accompanying notes are an integral part of this statement.
6
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
SCHEDULE OF INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1999
------------------
(continued)
SHARES VALUES
------ ------
Capital Goods-7.4%
Cummins Engine Company, Inc. 3,000 $ 149,438
Deere & Company 4,000 154,750
Fluor Corporation 4,000 161,000
Financial-6.6%
Loews Corporation 1,000 70,187
Pacific Century Financial Corporation 6,000 122,625
The St. Paul Companies 5,000 137,500
Ace Limited 5,000 84,687
Communication-2.7%
Loral Space & Communications Ltd.* 10,000 171,875
Other Industries-4.5% 55,000 275,629
TOTAL COMMON STOCKS (cost $6,477,918) $5,908,170
----------
SHORT-TERM INVESTMENTS-0.4%
Rydex Series Trust-U.S. Government Money
Market Fund (4.33% seven day yield, cost $26,594) 26,594
----------
TOTAL INVESTMENTS IN SECURITIES-98.7% OF NET ASSETS $6,193,551
(cost $6,840,248) ==========
- ----------------------------------
*Non-income producing security
The accompanying notes are an integral part of this statement.
7
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
-------------------------------------
INVESTMENT INCOME
Interest income $ 154,098
Dividend income 55,279
------------
TOTAL INCOME 209,377
------------
EXPENSES
Investment advisory fee 93,115
Distribution expenses 74,430
Administrative expenses 11,584
------------
TOTAL EXPENSES 179,129
------------
NET INVESTMENT INCOME 30,248
------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on securities 1,082,431
Change in net unrealized appreciation or
depreciation on securities (331,051)
------------
NET REALIZED AND UNREALIZED GAIN 751,380
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 781,628
============
The accompanying notes are an integral part of this statement.
8
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED SEPTEMBER 30, 1999 AND 1998
-----------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
1999 1998
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
Operations
<S> <C> <C>
Net investment income $ 30,248 $ 27,949
Net realized gain (loss) on securities 1,082,431 (220,761)
Change in net unrealized appreciation
or depreciation on securities (331,051) (312,975)
----------- -----------
Increase (decrease) in net assets resulting from operations 781,628 (505,787)
----------- -----------
Distributions to shareholders
from net investment income (61,540) (3,170)
from net realized gains on investments (552,154) --
----------- -----------
Total distributions to shareholders (613,694) (3,170)
----------- -----------
Beneficial interest share transactions*
Shares sold 5,244,694 4,615,307
Shares redeemed (3,681,431) (685,350)
Shares issued for reinvestment of distributions 613,694 3,170
----------- -----------
Increase in net assets from share transactions 2,176,957 3,933,127
----------- -----------
Total increase in net assets 2,344,891 3,424,170
Net assets
Beginning of period 3,925,928 501,758
----------- -----------
End of period (including undistributed net investment income
(loss) of $(6,529) and $24,762, respectively) $ 6,270,819 $ 3,925,928
=========== ===========
*Share information
Shares sold 606,390 495,928
Shares redeemed (400,831) (75,342)
Shares issued for reinvestment of distributions 64,298 359
----------- -----------
Increase in shares outstanding 269,857 420,945
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
9
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL DESCRIPTION
-------------------
IMPACT Management Investment Trust (the "Trust") was organized as a
Massachusetts business trust on December 18, 1996. The Trust is registered
under the Investment Company Act of 1940 (the "1940 Act") as a diversified,
open-end management investment company. IMPACT Total Return Portfolio
(formerly IMPACT Management Growth Portfolio) (the "Fund") is the initial
Series of the Trust. The Trust commenced operations on June 17, 1997, with
the sale of 10,000 shares of beneficial interest of the Fund to Jordan
American Holdings, Inc., d/b/a/ Equity Assets Management (the "Investment
Advisor"), for cash in the amount of $100,000. The Trust commenced
investing in securities on September 16, 1997.
SECURITIES VALUATION
--------------------
Investments in securities listed or traded on a securities exchange are
valued at the last quoted sales price on the securities' principal exchange
on that day. Listed securities not traded on an exchange that day, and
other securities which are traded in the over-the-counter market are valued
at the mean between the last closing bid and asked prices in the market on
that day.
METHOD OF REPORTING
-------------------
The financial statements are presented in accordance with generally
accepted accounting principles, which require the use of certain estimates
made by the Fund's management. The Fund follows industry practice and
records securities transactions on the trade date. Realized gains and
losses are reported on the identified cost basis. Dividend income is
recognized on the ex-dividend date, and interest income is recorded on the
accrual basis.
FEDERAL INCOME TAXES
--------------------
No provision for federal income taxes is required since the Fund intends to
continue to qualify as a regulated investment company and distribute all of
its taxable income to its shareholders.
NOTE 2. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities, other than short-term
investments, during the year ended September 30, 1999 were $10,547,766 and
$14,470,649, respectively. At September 30, 1999, the aggregate cost of
investments for federal income tax and financial reporting purposes was
$6,840,248 and net unrealized depreciation aggregated $(646,697), of which
$302,672 related to appreciated investments and $949,369 to depreciated
investments.
10
<PAGE>
IMPACT MANAGEMENT INVESTMENT TRUST
IMPACT TOTAL RETURN PORTFOLIO
(FORMERLY IMPACT MANAGEMENT GROWTH PORTFOLIO)
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(continued)
NOTE 3. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into an investment advisory agreement with the
Investment Advisor. The Investment Advisor makes investment decisions with
respect to the assets of the Fund and reviews, supervises and administers
the investment program of the Fund. As compensation for services rendered,
the Investment Advisor receives an annual investment advisory fee equal to
1.25% of the Fund's average daily net assets. The investment advisory fee
is calculated daily and paid monthly. Effective May 1, 1999 the Trust
entered into a sub-advisory agreement with Schneider Capital Management,
Inc. ("Schneider"). Pursuant to the sub-advisory agreement, the Investment
Advisor pays Schneider monthly at the rate of 60 basis points annually, out
of its advisory fee.
The Trust has a Distribution Plan pursuant to Rule 12b-1 of the 1940 Act.
Under the provisions of the Distribution Plan, the Fund pays or reimburses
the Investment Advisor, affiliates or other third parties for expenses
incurred in connection with the promotion and distribution of the Fund's
shares in an amount up to 1% per annum of the average daily net assets of
the Fund.
A wholly-owned subsidiary of the Investment Advisor, IMPACT Financial
Network, Inc., a broker and dealer in securities registered with the
Securities and Exchange Commission and a member of the National Association
of Securities Dealers, Inc., earned brokerage fees on the Fund's purchases
and sales of investment securities aggregating approximately $7,695 and was
reimbursed $74,430 pursuant to the provisions of the Distribution Plan for
the year ended September 30, 1999.
Certain officers of the Trust and members of the Board of Trustees are also
officers and directors of the Investment Advisor.
NOTE 4. ADMINISTRATIVE SERVICES
The Trust entered into an administrative service agreement with Impact
Administrative Services, Inc. ("IASI"), a wholly-owned subsidiary of the
Investment Advisor. Under the agreement, IASI provides administrative
personnel and services necessary to operate the Fund including transfer
agent and dividend disbursing agent services. IASI bears substantially all
operating expenses of the Fund, excluding brokerage fees, interest charges
and taxes. For these services, IASI was paid a fee of $165.00 per account
through April 30, 1999. The annual fee paid to IASI was charged to
shareholder accounts at each month end as a redemption of shares of
beneficial interest. Subsequent to April 30, 1999, the Trust began charging
an administrative service fee equal to .35% per annum of the daily net
assets of the Fund. The administrative service fee is calculated daily and
paid monthly to IASI. In addition, when a shareholder closes an account,
IASI is paid a fee of $2.00 which is charged to the shareholder as a
redemption of shares of beneficial interest. Total fees charged to
shareholder accounts under these agreements amounted to $23,088 for the
year ended September 30, 1999, of which $2,036 is payable to IASI at
September 30, 1999.
11
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Trustees
IMPACT Management Investment Trust
IMPACT Total Return Portfolio
(formerly IMPACT Management Growth Portfolio)
We have audited the accompanying statement of assets and liabilities of IMPACT
Total Return Portfolio (formerly IMPACT Management Growth Portfolio) (the
"Fund"), a Series of IMPACT Management Investment Trust, including the schedule
of investments in securities, as of September 30, 1999, and the related
statements of operations, changes in net assets and financial highlights for the
year then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements and
financial highlights. Our procedures included confirmation of securities owned
as of September 30, 1999, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of IMPACT
Total Return Portfolio (formerly IMPACT Management Growth Portfolio), a Series
of IMPACT Management Investment Trust, as of September 30, 1999, and the results
of its operations, changes in its net assets and the financial highlights for
the year then ended in conformity with generally accepted accounting principles.
SPICER, JEFFRIES & CO.
Denver, Colorado
October 13, 1999
12
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Shareholders and Board of Trustees
IMPACT Management Investment Trust
IMPACT Management Growth Portfolio
We have audited the accompanying statement of changes in net assets of IMPACT
Management Growth Portfolio (the "Fund"), a Series of IMPACT Management
Investment Trust, for the year ended September 30, 1998, and the financial
highlights for the year ended September 30, 1998 and for the period June 17,
1997 (commencement of operations) to September 30, 1997. The statement of
changes in net assets and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on the statement
of changes in net assets and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the statement of changes in net assets and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the statement of changes in net assets and financial highlights. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall statement of changes in net
assets and financial highlights presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the statement of changes in net assets and financial highlights
referred to above present fairly, in all material respects, the changes in net
assets of Impact Management Growth Portfolio, a Series of Impact Management
Investment Trust, for the year ended September 30, 1998, and the financial
highlights for the year ended September 30, 1998 and for the period June 17,
1997 (commencement of operations) to September 30, 1997, in conformity with
generally accepted accounting principles.
/s/ ARTHUR F. BELL, JR. & ASSOCIATES, L.L.C.
Lutherville, Maryland
October 22, 1998
13
