<TABLE>
<S> <C> <C> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
PORTFOLIO OF INVESTMENTS
November 30, 1997
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 99.29%
Computers - 5.48%
Compaq Computer Corporation ............................................. 10,200 $ 638,775
----------
Computer Software & Services - 4.45%
(a) BMC Software, Inc. ...................................................... 8,000 519,000
----------
Electronics - 5.54%
(a) SCI Systems, Inc. ....................................................... 14,100 645,956
----------
Financial - Banks, Commercial - 9.36%
GreenPoint Financial Corporation ........................................ 7,500 499,688
Northern Trust Corporation .............................................. 9,500 591,375
----------
1,091,063
----------
Financial Services - 15.17%
Franklin Resources, Inc. ................................................ 6,200 557,225
MBNA Corporation ........................................................ 17,400 463,275
SunAmerica, Inc. ........................................................ 5,500 222,750
Travelers Group, Inc. ................................................... 10,350 526,556
----------
1,769,806
----------
Furniture & Home Appliances - 6.17%
Ethan Allen Interiors, Inc. ............................................. 18,700 719,950
----------
Holding Companies - Diversified - 2.71%
Zeigler Coal Holding Company ............................................ 19,900 315,913
----------
Insurance - Multiline - 5.08%
Allstate Corporation .................................................... 6,200 532,425
Frontier Insurance Group, Inc. .......................................... 2,500 60,156
----------
592,581
----------
Office & Business Equipment - 4.87%
Herman Miller, Inc. ..................................................... 11,200 568,400
----------
Oil & Gas - Equipment & Services - 14.57%
ENSCO International Incorporated ........................................ 17,350 623,516
Halliburton Company ..................................................... 11,400 614,888
(a) Smith International, Inc. ............................................... 7,200 460,800
----------
1,699,204
----------
Packaging & Containers - 4.07%
(a) Owens - Illinois, Inc. .................................................. 14,000 474,250
----------
(Continued)
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
PORTFOLIO OF INVESTMENTS
November 30, 1997
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Retail - Specialty Line - 5.68%
(a) Barnes & Noble, Inc. .................................................. 21,400 $ 662,062
------------
Telecommunications - 4.55%
(a) United States Cellular Corporation .................................... 16,200 530,550
------------
Textiles - 8.23%
(a) Jones Apparel Group, Inc. ............................................. 10,700 521,625
(a) WestPoint Stevens, Inc. ............................................... 11,000 438,625
------------
960,250
------------
Utilities - 3.36%
(a) CalEnergy Company, Inc. ............................................... 11,800 392,350
------------
Total Common Stocks (Cost $10,516,768) ................................ 11,580,110
------------
INVESTMENT COMPANY - 0.72%
Evergreen Money Market Treasury Institutional Money
Market Fund Institutional Service Shares .............................. 84,134 84,134
------------
(Cost $84,134)
Total Value of Investments (Cost $10,600,902 (b)) ................................. 100.01% $ 11,664,244
Liabilities In Excess of Other Assets ............................................. (0.01)% (1,624)
------------ ------------
Net Assets ................................................................. 100.00 $ 11,662,620
============ ============
(a) Non-income producing investment.
(b) Aggregate cost for financial reporting and federal income tax purposes is the same. Unrealized appreciation
(depreciation) of investments for financial reporting and federal income tax purposes is as follows:
Unrealized appreciation $1,384,441
Unrealized depreciation (321,099)
----------------
Net unrealized appreciation $1,063,342
================
See accompanying notes to financial statements
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1997
(Unaudited)
ASSETS
Investments, at value (cost $10,600,902) ....................................................... $ 11,664,244
Income receivable .............................................................................. 6,681
Deferred organization expenses, net (note 4) ................................................... 30,422
Other assets ................................................................................... 12,404
------------
Total assets .............................................................................. 11,713,751
------------
LIABILITIES
Accrued expenses ............................................................................... 10,324
Due to investment advisor ...................................................................... 24,991
Disbursements in excess of cash on demand deposit .............................................. 15,816
------------
Total liabilities ......................................................................... 51,131
------------
NET ASSETS
(applicable to 1,059,003 shares outstanding; unlimited
shares of no par value beneficial interest authorized) ........................................ $ 11,662,620
============
NET ASSET VALUE, REDEMPTION AND MAXIMUM OFFERING PRICE
PER SHARE
($11,662,620 / 1,059,003 shares) ............................................................... $ 11.01
============
NET ASSETS CONSIST OF
Paid-in capital ................................................................................ $ 10,607,241
Accumulated net realized loss on investments ................................................... (7,963)
Net unrealized appreciation on investments ..................................................... 1,063,342
------------
$ 11,662,620
============
See accompanying notes to financial statements
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
STATEMENT OF OPERATIONS
For the Period from July 11, 1997
(commencement of operations)
to November 30, 1997
(Unaudited)
INVESTMENT LOSS
Income
Dividends ................................................................................... $ 19,975
Interest .................................................................................... 9,863
-----------
Total income ........................................................................... 29,838
-----------
Expenses
Investment advisory fees (note 2) ........................................................... 32,191
Fund administration fees (note 2) ........................................................... 5,365
Distribution and service fees (note 3) ...................................................... 10,730
Custody fees ................................................................................ 1,176
Registration and filing administration fees (note 2) ........................................ 557
Fund accounting fees (note 2) ............................................................... 10,356
Audit fees .................................................................................. 3,722
Legal fees .................................................................................. 2,841
Securities pricing fees ..................................................................... 552
Shareholder recordkeeping fees .............................................................. 3,118
Shareholder servicing expenses .............................................................. 618
Registration and filing expenses ............................................................ 5,207
Printing expenses ........................................................................... 917
Amortization of deferred organization expenses (note 4) ..................................... 2,078
Trustee fees and meeting expenses ........................................................... 1,534
Other operating expenses .................................................................... 1,043
-----------
Total expenses ......................................................................... 82,005
-----------
Less:
Investment advisory fees waived (note 2) ......................................... (152)
Distribution and service fees waived (note 3) .................................... (6,320)
-----------
Net expenses ........................................................................... 75,533
-----------
Net investment loss .............................................................. (45,695)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss from investment transactions ................................................... (7,963)
Increase in unrealized appreciation on investments ............................................... 1,063,342
-----------
Net realized and unrealized gain on investments ............................................. 1,055,379
-----------
Net increase in net assets resulting from operations ................................... $ 1,009,684
===========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Period from July 11, 1997
(commencement of operations)
to November 30, 1997
(Unaudited)
INCREASE IN NET ASSETS
Operations
Net investment loss ................................................................ $(45,695)
Net realized loss from investment transactions ..................................... (7,963)
Increase in unrealized appreciation on investments ................................. 1,063,342
------------
Net increase in net assets resulting from operations ............................ 1,009,684
------------
Capital share transactions
Increase in net assets resulting from capital share transactions (a) ............... 10,652,936
------------
Total increase in net assets ................................................. 11,662,620
NET ASSETS
Beginning of period ................................................................... 0
------------
End of period ......................................................................... $ 11,662,620
============
(a) A summary of capital share activity follows: ----------------------------------
Shares Value
----------------------------------
Shares sold ............................................................................. 1,059,003 $10,652,936
Shares issued for reinvestment
of distributions ...................................................................... 0 0
------------ ------------
1,059,003 10,652,936
Shares redeemed ......................................................................... 0 0
------------ ------------
Net increase .......................................................................... 1,059,003 $10,652,936
============ ============
See accompanying notes to financial statements
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
For the period from July 11, 1997
(commencement of operations)
to November 30, 1997
(Unaudited)
Net asset value, beginning of period (initial offering price) ...................................... $10.00
Income from investment operations
Net investment loss .................................................................... (0.04)
Net realized and unrealized gain on investments ........................................ 1.05
----------------
Total from investment operations .................................................. 1.01
----------------
Net asset value, end of period ..................................................................... $11.01
================
Total return ....................................................................................... 10.10%
================
Net assets, end of period .......................................................................... $11,662,620
================
Ratios/supplemental data
Ratio of expenses to average net assets
Before expense reimbursements and waived fees .......................................... 1.90%(a)
After expense reimbursements and waived fees ........................................... 1.75%(a)
Ratio of net investment loss to average net assets
Before expense reimbursements and waived fees ............................................... (1.23)%(a)
After expense reimbursements and waived fees ................................................ (1.07)%(a)
Portfolio turnover rate ..................................................................... 0.32%
Average broker commissions per share (b) .................................................... $0.0510
(a) Annualized.
(b) Represents total commissions paid on portfolio securities divided by total portfolio shares purchased or sold on which
commissions were charged.
See accompanying notes to financial statements
</TABLE>
<PAGE>
NEW PROVIDENCE CAPITAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1997
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION
The New Providence Capital Growth Fund (the "Fund") is a diversified
series of shares of beneficial interest of The New Providence
Investment Trust (the "Trust"). The Trust, an open-ended investment
company, was organized on July 9, 1997 as a Massachusetts Business
Trust and is registered under the Investment Company Act of 1940, as
amended. The investment objective of the Fund is to provide
shareholders with long-term capital growth, consisting of both realized
and unrealized capital gains. Current income is of secondary
importance. The Fund will seek to achieve this objective by investing
primarily in a portfolio of equity securities traded on domestic U.S.
exchanges or on over-the-counter markets. The Fund began operations on
July 11, 1997. The following is a summary of significant accounting
policies followed by the Fund.
A. Security Valuation - The Fund's investments in securities are
carried at value. Securities listed on an exchange or quoted on a
national market system are valued at the last sales price as of
4:00 p.m. New York time on the day of valuation. Other securities
traded in the over-the-counter market and listed securities for
which no sale was reported on that date are valued at the most
recent bid price. Securities for which market quotations are not
readily available, if any, are valued by using an independent
pricing service or by following procedures approved by the Board
of Trustees. Short-term investments are valued at cost which
approximates value.
B. Federal Income Taxes - No provision has been made for federal
income taxes since substantially all taxable income has been
distributed to shareholders. It is the policy of the Fund to
comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and to make
sufficient distributions of taxable income to relieve it from all
federal income taxes.
C. Investment Transactions - Investment transactions are recorded on
the trade date. Realized gains and losses are determined using
the specific identification cost method. Interest income is
recorded daily on an accrual basis. Dividend income is recorded
on the ex-dividend date.
D. Distributions to Shareholders - The Fund may declare dividends
quarterly, payable in March, June, September and December, on a
date selected by the Trust's Trustees. In addition, distributions
may be made annually in December out of net realized gains
through October 31 of that year. Distributions to shareholders
are recorded on the ex-dividend date. The Fund may make a
supplemental distribution subsequent to the end of its fiscal
year ending May 31.
E. Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
amounts of assets, liabilities, expenses and revenues reported in
the financial statements. Actual results could differ from those
estimated.
NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
Pursuant to an investment advisory agreement, New Providence Capital
Management, Inc. (the "Advisor") composition of its provides the Fund
with a continuous program of supervision of the Fund's assets,
including the portfolio, and furnishes advice and recommendations with
respect to investments, investment policies and the purchase and sale
of securities. As compensation for its services, the Advisor receives a
fee at the annual rate of 0.75% of the Fund's average daily net assets.
(Continued)
<PAGE>
NEW PROVIDENCE CAPITAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1997
(Unaudited)
The Advisor intends to voluntarily waive all or a portion of its fee
and reimburse expenses of the Fund to limit total Fund operating
expenses to 1.75% of the average daily net assets of the Fund. There
can be no assurance that the foregoing voluntary fee waivers or
reimbursements will continue. The Advisor has voluntarily waived a
portion of its fee amounting to $152 for the period ended November 30,
1997.
The Fund's administrator, The Nottingham Company (the "Administrator"),
provides administrative services to and is generally responsible for
the overall management and day-to-day operations of the Fund pursuant
to an accounting and administrative agreement with the Trust. As
compensation for its services, the Administrator receives a fee at the
annual rate of 0.125% of the Fund's first $50 million of average daily
net assets, 0.10% of the next $50 million of average daily net assets,
and 0.075% of average daily net assets over $100 million. The
Administrator also receives a monthly fee of $2,250 for accounting and
recordkeeping services. Additionally, the Administrator charges the
Fund for servicing of shareholder accounts and registration of the
Fund's shares. The contract with the Administrator provides that the
aggregate fees for the aforementioned administration, accounting and
recordkeeping services shall not be less than $50,000 per year. The
Administrator also charges the Fund for certain expenses involved with
the daily valuation of portfolio securities.
Certain Trustees and officers of the Trust are also officers of the
Advisor, the distributor or the Administrator.
At November 30, 1997, the Advisor and its officers held 267 shares or
0.03% of the Fund shares outstanding.
NOTE 3 - DISTRIBUTION AND SERVICE FEES
The Board of Trustees, including a majority of the Trustees who are not
"interested persons" of the Trust as defined in the Investment Company
Act of 1940 (the "Act"), adopted a distribution plan pursuant to Rule
12b-1 of the Act (the "Plan"). The Act regulates the manner in which a
regulated investment company may assume expenses of distributing and
promoting the sales of its shares and servicing of its shareholder
accounts.
The Plan provides that the Fund may incur certain expenses, which may
not exceed 0.25% per annum of the Fund's average daily net assets for
each year elapsed subsequent to adoption of the Plan, for payment to
the Distributor and others for items such as advertising expenses,
selling expenses, commissions, travel or other expenses reasonably
intended to result in sales of shares of the Fund or support servicing
of shareholder accounts.
NOTE 4 - DEFERRED ORGANIZATION EXPENSES
All expenses of the Fund incurred in connection with its organization
and the registration of its shares have been assumed by the Fund. The
organization expenses are being amortized over a period of sixty
months. Investors purchasing shares of the Fund bear such expenses only
as they are amortized against the Fund's investment income.
NOTE 5 - PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term investments,
aggregated $10,560,643 and $35,913, respectively, for the period ended
November 30, 1997.
