________________________________________________________________________________
NEW PROVIDENCE CAPITAL
GROWTH FUND
________________________________________________________________________________
a series of the New Providence Investment Trust
SEMI-ANNUAL REPORT 1999
FOR THE PERIOD ENDED NOVEMBER 30
INVESTMENT ADVISOR
New Providence Capital Management, L.L.C.
2859 Paces Ferry Road, Suite 2125
Atlanta, Georgia 30339
NEW PROVIDENCE CAPITAL GROWTH FUND
105 North Washington Street
Post Office Drawer 69
Rocky Mount, North Carolina 27802-0069
1-800-525-3863
This Report has been prepared for shareholders
and may be distributed to others only if preceded
or accompanied by a current prospectus.
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
PORTFOLIO OF INVESTMENTS
November 30, 1999
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 97.78%
Apparel Manufacturing - 5.41%
(a)Jones Apparel Group, Inc. .............................................. 34,400 $ 911,600
(a)Tommy Hilfiger Corporation ............................................. 15,000 369,375
-----------
1,280,975
-----------
Commercial Services - 0.78%
(a)Navigant Consulting, Inc. .............................................. 17,400 184,875
-----------
Computer Software & Services - 3.38%
(a)BMC Software, Inc. ..................................................... 11,000 800,938
-----------
Electronics - 6.31%
(a)Lexmark International Group, Inc. ...................................... 18,000 1,495,125
-----------
Electronics - Semiconductor - 2.85%
(a)Vitesse Semiconductor Corporation ...................................... 15,000 675,937
-----------
Financial Savings/Loans/Thrifts - 4.40%
(a)Golden State Bancorp Inc. .............................................. 54,500 1,042,313
-----------
Financial Services - 2.42%
Capital One Financial Corporation ...................................... 12,300 572,719
-----------
Furniture & Home Appliances - 3.87%
Ethan Allen Interiors Inc. ............................................. 17,000 565,250
(a)Furniture Brands International, Inc. ................................... 18,000 351,000
-----------
916,250
-----------
Human Resources - 2.26%
(a)Modis Professional Services, Inc. ...................................... 50,000 534,375
-----------
Leisure Time - 11.32%
(a)Bally Total Fitness Holding Corporation ................................ 41,300 939,575
Brunswick Corporation .................................................. 25,000 545,312
(a)Station Casinos, Inc. .................................................. 49,800 1,195,200
-----------
2,680,087
-----------
Machine - Diversified - 2.88%
(a)Applied Materials, Inc. ................................................ 7,000 682,500
-----------
(Continued)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
PORTFOLIO OF INVESTMENTS
November 30, 1999
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Medical - Hospital Management & Services - 4.54%
United Healthcare Corporation .......................................... 20,700 $ 1,075,106
-----------
Miscellaneous - Manufacturing - 2.17%
Tyco International Ltd. ................................................ 12,800 514,400
-----------
Restaurants & Food Service - 1.07%
(a)Outback Steakhouse, Inc. ............................................... 10,750 253,297
-----------
Retail - Apparel - 14.18%
(a)AnnTaylor Stores Corporation ........................................... 14,500 626,218
Intimate Brands, Inc. .................................................. 11,710 503,530
(a)Kenneth Cole Productions, Inc. ......................................... 31,800 1,458,825
Ross Stores, Inc. ...................................................... 22,000 422,125
(a)Quiksilver, Inc. ....................................................... 23,000 347,875
-----------
3,358,573
-----------
Retail - Specialty Line - 13.07%
Circuit City Stores-Circuit City Group ................................. 13,500 654,750
Tandy Corporation ...................................................... 10,000 766,250
Tiffany & Co. .......................................................... 21,600 1,674,000
-----------
3,095,000
-----------
Scientific & Technical Instrument - 1.90%
(a)Waters Corporation ..................................................... 9,200 450,800
-----------
Telecommunications Equipment - 5.57%
(a)ADC Telecommunications, Inc. ........................................... 24,700 1,318,363
-----------
Transportation - Air - 2.13%
(a)FDX Corporation ........................................................ 12,000 504,750
-----------
Transportation - Miscellaneous - 4.41%
USFreightways Corporation .............................................. 25,000 1,043,750
-----------
Transportation - Rail - 2.36%
Kansas City Southern Industries, Inc. .................................. 9,400 559,300
-----------
Trucking & Leasing - 0.50%
Roadway Express, Inc. .................................................. 6,000 119,250
-----------
Total Common Stocks (Cost $21,831,357) .............................................................. 23,158,683
-----------
(Continued)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
PORTFOLIO OF INVESTMENTS
November 30, 1999
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANY - 2.25%
Evergreen Money Market Treasury Institutional Money
Market Fund Institutional Service Shares ............................... 534,053 $ 534,053
(Cost $534,053) -----------
Total Value of Investments (Cost $22,365,410 (b)) .................................. 100.03 % $23,692,736
Liabilities in Excess of Other Assets .............................................. (0.03)% (8,256)
------ -----------
Net Assets .................................................................. 100.00 % $23,684,480
====== ===========
(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 ......................................................................... $ 3,310,789
Unrealized depreciation ......................................................................... (1,983,463)
-----------
Net unrealized appreciation ..................................................... $ 1,327,326
===========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
(Unaudited)
ASSETS
Investments, at value (cost $22,365,410) ......................................................... $23,692,736
Cash ............................................................................................. 399
Income receivable ................................................................................ 5,790
Deferred organization expenses, net (note 4) ..................................................... 19,589
-----------
Total assets ................................................................................ 23,718,514
-----------
LIABILITIES
Accrued expenses ................................................................................. 34,034
-----------
NET ASSETS
(applicable to 1,961,439 shares outstanding; unlimited
shares of no par value beneficial interest authorized) .......................................... $23,684,480
===========
NET ASSET VALUE, REDEMPTION AND OFFERING PRICE PER SHARE
($23,684,480 / 1,961,439 shares) ................................................................. $12.08
===========
NET ASSETS CONSIST OF
Paid-in capital .................................................................................. $20,763,747
Undistributed net realized gain on investments ................................................... 1,593,407
Net unrealized appreciation on investments ....................................................... 1,327,326
-----------
$23,684,480
===========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
STATEMENT OF OPERATIONS
Period ended November 30, 1999
(Unaudited)
INVESTMENT LOSS
Income
Dividends ..................................................................................... $ 27,681
----------
Expenses
Investment advisory fees (note 2) ............................................................. 88,666
Fund administration fees (note 2) ............................................................. 14,778
Distribution and service fees (note 3) ........................................................ 29,555
Custody fees .................................................................................. 1,881
Registration and filing administration fees (note 2) .......................................... 1,954
Fund accounting fees (note 2) ................................................................. 13,500
Audit fees .................................................................................... 5,014
Legal fees .................................................................................... 3,761
Securities pricing fees ....................................................................... 1,290
Shareholder recordkeeping fees ................................................................ 4,500
Shareholder servicing expenses ................................................................ 1,504
Registration and filing expenses .............................................................. 7,020
Printing expenses ............................................................................. 2,006
Amortization of deferred organization expenses (note 4) ....................................... 2,716
Trustee fees and meeting expenses ............................................................. 1,755
Other operating expenses ...................................................................... 1,805
----------
Total expenses .......................................................................... 181,705
----------
Net investment loss ................................................................ (154,024)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from investment transactions ..................................................... 1,448,794
Decrease in unrealized appreciation on investments ................................................. (504,123)
----------
Net realized and unrealized gain on investments ............................................... 944,671
----------
Net increase in net assets resulting from operations .................................... $ 790,647
==========
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
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended Year ended
November 30, May 31,
1999 1999
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment loss ......................................................... $ (154,024) $ (281,209)
Net realized gain from investment transactions .............................. 1,448,794 144,609
Decrease (increase) in unrealized appreciation on investments ............... (504,123) 395,630
----------- -----------
Net increase in net assets resulting from operations .................... 790,647 259,030
----------- -----------
Distributions to shareholders from
Net realized gain from investment transactions .............................. 0 (52,944)
----------- -----------
Capital share transactions
Decrease in net assets resulting from capital share transactions (a) ......... (129,872) (346,158)
----------- -----------
Total increase (decrease) in net assets ......................... 660,775 (140,072)
NET ASSETS
Beginning of period .............................................................. 23,023,705 23,163,777
----------- -----------
End of period .................................................................... $23,684,480 $23,023,705
=========== ===========
(a) A summary of capital share activity follows:
-----------------------------------------------------------------------------
Period ended Year ended
November 30, 1999 May 31, 1999
Shares Value Shares Value
-----------------------------------------------------------------------------
Shares sold ........................................ 9,719 $ 115,195 9,828 $ 108,932
Shares issued for reinvestment
of distributions .............................. 0 0 4,492 52,468
----------- ----------- ----------- -----------
9,719 115,195 14,320 161,400
Shares redeemed .................................... (20,512) (245,067) (43,923) (507,558)
----------- ----------- ----------- -----------
Net decrease .................................. (10,793) $ (129,872) (29,603) $ (346,158)
=========== =========== =========== ===========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C>
NEW PROVIDENCE CAPITAL GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended Year ended Period ended
November 30, May 31, May 31,
1999 1999 1998 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................ $11.67 $11.57 $11.37 (b)
Income (loss) from investment operations
Net investment loss ...................................... (0.08) (0.14) (0.08)
Net realized and unrealized gain on investments .......... 0.49 0.27 0.28
----------- ----------- -----------
Total from investment operations .................... 0.41 0.13 0.20
----------- ----------- -----------
Distributions to shareholders from
Net realized gain from investment transactions ........... (0.00) (0.03) 0.00
----------- ----------- -----------
Net asset value, end of period ...................................... $12.08 $11.67 $11.57
=========== =========== ===========
Total return ........................................................ 3.42 % 1.18 % 1.76 %
=========== =========== ===========
Ratios/supplemental data
Net assets, end of period ..................................... $23,684,480 $23,023,705 $23,163,777
=========== =========== ===========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ............ 1.54 %(c) 1.58 % 1.79 %(c)
After expense reimbursements and waived fees ............. 1.54 %(c) 1.58 % 1.62 %(c)
Ratio of net investment income (loss) to average net assets
Before expense reimbursements and waived fees ............ (1.30)%(c) (1.29)% (1.41)%(c)
After expense reimbursements and waived fees ............. (1.30)%(c) (1.29)% (1.24)%(c)
Portfolio turnover rate ....................................... 82.10 % 148.37 % 57.27 %
(a) For the period from September 29, 1997 (date of initial public offering) to May 31, 1998.
(b) Includes undistributed net investment loss of $0.02 per share and undistributed net realized and unrealized gains of $1.39 per
share, both of which were earned from July 11, 1997 (commencement of operations) through September 29, 1997.
(c) Annualized.
See accompanying notes to financial statements
</TABLE>
<PAGE>
NEW PROVIDENCE CAPITAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
(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. As of November 30, 1999, one shareholder of record owned
94.783% of the outstanding shares of the Fund. 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.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and income tax purposes primarily
because of losses incurred subsequent to October 31, which are
deferred for income tax purposes. The character of distributions
made during the year from net investment income or net realized
gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to the timing of dividend
distributions, the fiscal year in which amounts are distributed
may differ from the year that the income or realized gains were
recorded by the Fund.
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
estimates.
(Continued)
<PAGE>
NEW PROVIDENCE CAPITAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
(Unaudited)
NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
Pursuant to an investment advisory agreement, New Providence Capital
Management, Inc. (the "Advisor") 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.
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. The contract with the Administrator provides
that the aggregate fees for the aforementioned administration,
accounting and recordkeeping services shall not be less than $41,000
per year. The Administrator also charges the Fund for certain expenses
involved with the daily valuation of portfolio securities.
North Carolina Shareholder Services, LLC (the "Transfer Agent") serves
as the Fund's transfer, dividend paying, and shareholder servicing
agent. The Transfer Agent maintains the records of each shareholder's
account, answers shareholder inquiries concerning accounts, processes
purchases and redemptions of the Fund shares, acts as dividend and
distribution disbursing agent, and performs other shareholder servicing
functions.
Certain Trustees and officers of the Trust are also officers of the
Advisor, the distributor or the Administrator.
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. Expenditures incurred as service fees may not
exceed 0.25% per annum of the Fund's average daily net assets.
(Continued)
<PAGE>
NEW PROVIDENCE CAPITAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
(Unaudited)
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 $19,041,137 and $19,804,836, respectively, for the period
ended November 30, 1999.
<PAGE>
________________________________________________________________________________
WISDOM FUND
________________________________________________________________________________
a series of the New Providence Investment Trust
SEMI-ANNUAL REPORT 1999
FOR THE PERIOD ENDED NOVEMBER 30
INVESTMENT ADVISOR
Atlanta Investment Counsel, LLC
2771 Carmon-on-Wesley, NW
Suite 100
Atlanta, Georgia 30327
WISDOM FUND
105 North Washington Street
Post Office Drawer 69
Rocky Mount, North Carolina 27802-0069
1-800-525-3863
This Report has been prepared for shareholders
and may be distributed to others only if preceded
or accompanied by a current prospectus.
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 1999
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 71.25%
Beverages - 16.47%
The Coca-Cola Company ................................................... 7,150 $ 481,284
----------
Cosmetics & Personal Care - 4.67%
The Gillette Company ................................................... 3,400 136,425
----------
Entertainment - 1.74%
The Walt Disney Company ................................................. 1,825 50,872
----------
Financial - Banks, Commercial - 3.74%
Wells Fargo Company ..................................................... 2,350 109,275
----------
Financial - Banks, Money Center - 1.50%
Citigroup Inc. .......................................................... 812 43,747
----------
Financial Services - 21.18%
American Express Company ................................................ 1,800 272,362
AXA Financial, Inc. ..................................................... 2,300 77,194
Freddie Mac ............................................................. 2,125 104,922
Marsh & McLennan Companies, Inc. ........................................ 975 76,659
MGIC Investment Corporation ............................................. 1,550 87,575
----------
618,712
----------
Insurance - Multiline - 18.16%
AFLAC INCORPORATED ...................................................... 1,600 76,600
The Allstate Corporation ................................................ 2,075 54,598
American General Corporation ............................................ 950 69,647
American International Group, Inc. ...................................... 837 86,420
Conseco, Inc. ........................................................... 2,600 52,650
Hartford Life, Inc. ..................................................... 1,450 64,887
Lincoln National Corporation ............................................ 1,500 62,719
Nationwide Financial Services, Inc. ..................................... 1,750 62,891
----------
530,412
----------
Insurance - Property & Casualty - 2.52%
20th Century Industries ................................................. 3,800 73,625
----------
Publishing - Newspapers - 1.27%
The Washington Post Company ............................................. 65 37,148
----------
Total Common Stocks (Cost $2,057,251) ........................................................... 2,081,500
----------
(Continued)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C>
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 1999
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Principal Rate Date (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
U. S. GOVERNMENT OBLIGATION - 22.41%
United States Treasury Bill ................ $667,000 5.195% 04/06/00 $ 654,680
(Cost $655,235) ----------
Shares
--------
INVESTMENT COMPANY - 2.08%
Evergreen Money Market Treasury Institutional Money
Market Fund Institutional Service Shares ................................ 60,645 60,645
(Cost $60,645) ----------
Total Value of Investments (Cost $2,773,131 (a)) ................................... 95.74% $2,796,825
Other Assets Less Liabilities ...................................................... 4.26% 124,422
------ ----------
Net Assets .................................................................... 100.00% $2,921,247
====== ==========
(a) 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 .......................................................................... $ 130,599
Unrealized depreciation .......................................................................... (106,905)
----------
Net unrealized appreciation ....................................................... $ 23,694
==========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
WISDOM FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
(Unaudited)
ASSETS
Investments, at value (cost $2,773,131) ....................................................... $2,796,825
Income receivable ............................................................................. 3,700
Receivable for fund shares sold ............................................................... 124,808
Prepaid expenses .............................................................................. 3,207
Due from advisor (note 2) ..................................................................... 7,970
----------
Total assets ............................................................................. 2,936,510
----------
LIABILITIES
Accrued expenses .............................................................................. 15,263
----------
NET ASSETS ........................................................................................... $2,921,247
==========
NET ASSETS CONSIST OF
Paid-in capital ............................................................................... $2,890,003
Undistributed net investment income ........................................................... 9,432
Accumulated net realized loss on investments .................................................. (1,882)
Net unrealized appreciation on investments .................................................... 23,694
----------
$2,921,247
==========
INSTITUTIONAL CLASS
Net asset value, redemption and maximum offering price per share
($2,550,760 / 252,893 shares : unlimited shares of $0.01 par value
beneficial interest authorized) ............................................................ $10.09
==========
INVESTOR CLASS
Net asset value, redemption and maximum offering price per share
($370,289 / 36,675 shares : unlimited shares of $0.01 par value
beneficial interest authorized) ............................................................ $10.10
==========
Maximum offering price per share (100 / 94.25% of $10.10) ..................................... $10.72
==========
CLASS B
Net asset value, redemption and maximum offering price per share
($99 / 10 shares : unlimited shares of $0.01 par value
beneficial interest authorized) ............................................................ $10.10
==========
CLASS C
Net asset value, redemption and maximum offering price per share
($99 / 10 shares : unlimited shares of $0.01 par value
beneficial interest authorized) ............................................................ $10.10
==========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
WISDOM FUND
STATEMENT OF OPERATIONS
Period ended November 30, 1999
(Unaudited)
INVESTMENT INCOME
Income
Interest ........................................................................................ $ 5,042
Dividends ....................................................................................... 12,194
--------
Total income .............................................................................. 17,236
--------
Expenses
Investment advisory fees (note 2) ............................................................... 4,482
Fund administration fees (note 2) ............................................................... 1,123
Distribution and service fees - Investor class (note 3) ......................................... 116
Custody fees .................................................................................... 1,804
Registration and filing administration fees (note 2) ............................................ 813
Fund accounting fees (note 2) ................................................................... 18,000
Audit fees ...................................................................................... 5,265
Legal fees ...................................................................................... 4,513
Securities pricing fees ......................................................................... 625
Shareholder recordkeeping fees .................................................................. 4,450
Other accounting fees (note 2) .................................................................. 1,398
Shareholder servicing expenses .................................................................. 1,504
Registration and filing expenses ................................................................ 752
Printing expenses ............................................................................... 3,009
Trustee fees and meeting expenses ............................................................... 1,755
Other operating expenses ........................................................................ 2,006
--------
Total expenses ............................................................................ 51,615
--------
Less:
Expense reimbursements (note 2) ...................................................... (46,193)
Investment advisory fees waived (note 2) ............................................. (4,482)
Fund administration fees waived (note 2) ............................................. (132)
Other accounting fees waived (note 2) ................................................ (694)
Distribution fees waived (note 3) .................................................... (4)
--------
Net expenses .............................................................................. 110
--------
Net investment income ................................................................ 17,126
--------
UNREALIZED GAIN ON INVESTMENTS
Increase in unrealized appreciation on investments ................................................... 26,476
--------
Net increase in net assets resulting from operations ...................................... $ 43,602
========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
WISDOM FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended Period ended
November 30, May 31,
1999 1999 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
Operations
Net investment income ........................................................ $ 17,126 $ 1,775
Net realized loss from investment transactions ............................... 0 (1,881)
Decrease (increase) in unrealized depreciation on investments ................ 26,476 (2,782)
---------- ----------
Net increase (decrease) in net assets resulting from operations ......... 43,602 (2,888)
---------- ----------
Distributions to shareholders from
Net investment income - Institutional Class .................................. (7,561) (1,775)
Net investment income - Investor Class ....................................... (133) 0 (b)
---------- ----------
Decrease in net assets resulting from distributions ..................... (7,694) (1,775)
---------- ----------
Capital share transactions
Increase in net assets resulting from capital share transactions (c) ......... 2,387,027 502,975
---------- ----------
Total increase in net assets ....................................... 2,422,935 498,312
NET ASSETS
Beginning of period ............................................................... 498,312 0
---------- ----------
End of period ..................................................................... $2,921,247 $ 498,312
========== ==========
(c) A summary of capital share activity follows: -----------------------------------------------------------------------------
Period ended Period ended
November 30, 1999 May 31, 1999 (a)
Shares Value Shares Value
-----------------------------------------------------------------------------
- -----------------------------------------------------
INSTITUTIONAL CLASS
- -----------------------------------------------------
Shares sold ......................................... 201,763 $2,021,000 50,110 $ 501,100
Shares issued for reinvestment of distributions ..... 841 7,562 179 1,775
---------- ---------- ---------- ----------
202,604 2,028,562 50,289 502,875
Shares redeemed ..................................... 0 0 0 0
---------- ---------- ---------- ----------
Net increase ................................. 202,604 $2,028,562 50,289 $ 502,875
========== ========== ========== ==========
- -----------------------------------------------------
INVESTOR CLASS
- -----------------------------------------------------
Shares sold ......................................... 37,128 $ 362,641 10 $ 100
Shares issued for reinvestment of distributions ..... 15 132 0 0
---------- ---------- ---------- ----------
37,143 362,773 10 100
Shares redeemed ..................................... (478) (4,508) 0 0
---------- ---------- ---------- ----------
Net increase ................................. 36,665 $ 358,265 10 $ 100
========== ========== ========== ==========
- -----------------------------------------------------
CLASS B
- -----------------------------------------------------
Shares sold ......................................... 10 $ 100 0 $ 0
Shares issued for reinvestment of distributions ..... 0 0 0 0
---------- ---------- ---------- ----------
10 100 0 0
Shares redeemed ..................................... 0 0 0 0
---------- ---------- ---------- ----------
Net increase ................................. 10 $ 100 0 $ 0
========== ========== ========== ==========
- -----------------------------------------------------
CLASS C
- -----------------------------------------------------
Shares sold ......................................... 10 $ 100 0 $ 0
Shares issued for reinvestment of distributions ..... 0 0 0 0
---------- ---------- ---------- ----------
10 100 0 0
Shares redeemed ..................................... 0 0 0 0
---------- ---------- ---------- ----------
Net increase ................................. 10 $ 100 0 $ 0
========== ========== ========== ==========
(a) For the period from February 16, 1999 (commencement of operations) to May 31, 1999.
(b) A distribution from Investor Class income was paid in the amount of $0.22.
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
WISDOM FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Class Investor Class
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended Period ended Period ended Period ended
November 30, May 31, November 30, May 31,
1999 1999 (a) 1999 1999 (a)
------------------------------- ---------------------------------
Net asset value, beginning of period ....................... $9.91 $10.00 $ 9.92 $10.00
Income from investment operations
Net investment income ........................... 0.06 0.04 0.03 0.02
Net realized and unrealized gain (loss)
on investments ................................ 0.15 (0.09) 0.16 (0.08)
---------- ---------- ---------- ----------
Total from investment operations ............. 0.21 (0.05) 0.19 (0.06)
---------- ---------- ---------- ----------
Distributions to shareholders from
Net investment income ........................... (0.03) (0.04) (0.01) (0.02)
---------- ---------- ---------- ----------
Net asset value, end of period ............................. $10.09 $ 9.91 $10.10 $ 9.92
========== ========== ========== ==========
Total return (c) ........................................... 2.05 % (0.45)% 1.93 % (0.58)%
========== ========== ========== ==========
Ratios/supplemental data
Net assets, end of period ........................... $2,550,760 $ 498,213 $ 370,289 $ 99
========== ========== ========== ==========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ... 5.72 %(d) 23.94 %(d) 6.45 %(d) 15.49 %(d)
After expense reimbursements and waived fees .... 0.00 %(d) 0.00 %(d) 0.25 %(d) 0.00 %(d)
Ratio of net investment (loss) income to average net assets
Before expense reimbursements and waived fees ... (3.81)%(d) (22.69)%(d) (4.37)%(d) (14.68)%(d)
After expense reimbursements and waived fees .... 1.91 %(d) 1.26 %(d) 1.84 %(d) 0.81 %(d)
Portfolio turnover rate ............................. 0.01 % 7.04 % 0.01 % 7.04 %
(a) For the period from February 16, 1999 (commencement of operations) to May 31, 1999.
(b) For the period from November 16, 1999 (commencement of operations) to November 30, 1999.
(c) Total return does not reflect payment of a sales charge.
(d) Annualized.
(Continued)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
WISDOM FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Class B Class C
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended Period ended
November 30, November 30,
1999 (b) 1999 (b)
-------------- ---------------
Net asset value, beginning of period ..................................................... $10.20 $10.20
Income from investment operations
Net investment income ......................................................... 0.01 0.01
Net realized and unrealized gain (loss) on investments ........................ (0.11) (0.11)
------ ------
Total from investment operations ........................................... (0.10) (0.10)
------ ------
Distributions to shareholders from
Net investment income ......................................................... 0.00 0.00
------ ------
Net asset value, end of period ........................................................... $10.10 $10.10
====== ======
Total return (c) ......................................................................... (0.98)% (0.98)%
====== ======
Ratios/supplemental data
Net assets, end of period ......................................................... $ 99 $ 99
====== ======
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ................................. 0.00 %(d) 0.00 %(d)
After expense reimbursements and waived fees .................................. 0.00 %(d) 0.00 %(d)
Ratio of net investment (loss) income to average net assets
Before expense reimbursements and waived fees ................................. 0.16 %(d) 0.16 %(d)
After expense reimbursements and waived fees .................................. 0.16 %(d) 0.16 %(d)
Portfolio turnover rate ........................................................... 0.01 % 0.01 %
(a) For the period from February 16, 1999 (commencement of operations) to May 31, 1999.
(b) For the period from November 16, 1999 (commencement of operations) to November 30, 1999.
(c) Total return does not reflect payment of a sales charge.
(d) Annualized.
See accompanying notes to financial statements
</TABLE>
<PAGE>
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION
The Wisdom Fund (the "Fund"), is a diversified series of shares of
beneficial interest of the New Providence Investment Trust (the
"Trust"). The Trust, an open-end 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 Fund began
operations on February 16, 1999. The investment objective of the fund
is to seek maximum total return consisting of any combination of
capital appreciation, realized and unrealized, and income under the
constantly varying market conditions. The Board of Trustees of the
Trust approved on October 7,1999 a plan to authorize two new classes of
shares designated as Class B Shares and Class C Shares. On November 16,
1999, the Class B Shares and Class C Shares became effective. The Fund
has an unlimited number of authorized shares, which are divided into
four classes - Institutional Shares, Investor Shares, Class B shares
and Class C shares.
Each class of shares has equal rights as to assets of the Fund, and the
classes are identical except for differences in their sales charge
structures and ongoing distribution and service fees. Income, expenses
(other than distribution and service fees, which are not attributable
to the Institutional Class), and realized and unrealized gains or
losses on investments are allocated to each class of shares based upon
its relative net assets. All classes have equal voting privileges,
except where otherwise required by law or when the Board of Trustees
determines that the matter to be voted on affects only the interests of
the shareholders of a particular class. 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 4:00 p.m., New York time.
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 - The Fund is considered a personal holding
company as defined under Section 542 of the Internal Revenue Code
since 50% of the value of the Fund's shares were owned directly or
indirectly by five or fewer individuals at certain times during
the last half of the year. As a personal holding company, the Fund
is subject to federal income taxes on undistributed personal
holding company income at the maximum individual income tax rate.
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.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and income tax purposes primarily
because of losses incurred subsequent to October 31, which are
deferred for income tax purposes. The character of distributions
made during the year from net investment income or net realized
gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to the timing of dividend
distributions, the fiscal year in which amounts are distributed
may differ from the year that the income or realized gains were
recorded by the Fund.
(Continued)
<PAGE>
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
(Unaudited)
C. Investment Transactions - Investment transactions are recorded on
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. Distributions to
shareholders are recorded on the ex-dividend date. 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
estimates.
NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
Pursuant to an investment advisory agreement, Atlanta Investment
Council, LLC (the "Advisor"), provides the Fund with a continuous
program of supervision of the Fund's assets, including the composition
of its 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 0.50% of the first $500 million of the Fund's
average daily net assets and 0.40% of all assets over $500 million.
The Advisor currently intends to voluntarily waive all or a portion of
its fee and to reimburse expenses of the Fund to limit total Fund
operating expenses to a maximum of 1.15% of the average daily net
assets of the Fund's Institutional Class, a maximum of 1.40% of the
average daily net assets of the Fund's Investor Class, and a maximum of
2.15% of the average daily net assets of the Fund's Class B and Class C
Shares. 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 $4,482 ($0.02 per share) and
reimbursed $46,193 of the operating expenses incurred by the Fund for
the period ended November 30, 1999.
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, 0.100% of the next $50 million, and 0.075% of average daily
net assets over $100 million as well as a monthly fee of $2,250 for
accounting and record-keeping services for the initial class of shares
and $750 per month for each additional class of shares. The contract
with the Administrator provides that the aggregate fees for the
aforementioned administration, accounting, and recordkeeping services
shall not be less than $41,000 per year. The Administrator also charges
the Fund for certain expenses involved with the daily valuation of
portfolio securities. The Administrator voluntarily waived a portion of
its fees amounting to $826 for the period ended November 30, 1999.
There can be no assurance that the foregoing voluntary fee waivers will
continue.
(Continued)
<PAGE>
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
(Unaudited)
North Carolina Shareholder Services, LLC (the "Transfer Agent") serves
as the Fund's transfer, dividend paying, and shareholder servicing
agent. The Transfer Agent maintains the records of each Shareholder's
account, answers shareholder inquiries concerning accounts, processes
purchases and redemptions of the Fund's shares, acts as dividend and
distribution disbursing agent, and performs other shareholder servicing
functions.
Donaldson & Co., Inc. (the "Distributor"), an affiliate of the Advisor,
serves as the Fund's principal underwriter and distributor. The
Distributor receives any sales charges imposed on purchases of Investor
Shares and re-allocates a portion of such charges to dealers through
whom the sale was made, if any. The Distributor retained sales charges
of $2,662 for the period ended November 30, 1999.
Certain Trustees and officers of the Trust are also officers or
directors of the Advisor, the Distributor, or the Administrator.
NOTE 3 - DISTRIBUTION AND SERVICE FEES
The Board of Trustees, including the Trustees who are not "interested
persons" of the Trust as defined in the Investment Company Act of 1940
(the "Act"), adopted a distribution and service plan pursuant to Rule
12b-1 of the Act (the "Plan") applicable to the Investor Shares. The
Act regulates the manner in which a regulated investment company may
assume costs of distributing and promoting the sales of its shares and
servicing of its shareholder accounts.
The Plan provides that the Fund may incur certain costs, which may not
exceed 0.25% per annum of the Investor Class Shares' average daily net
assets or 1.00% per annum of the Class B Shares or Class C Shares 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 Investor Class Shares in the Fund or
support servicing of Investor Class Shares' shareholder accounts. The
Fund incurred $116 under the Plan for the period ended November 30,
1999.
NOTE 4 - PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term investments,
aggregated $1,752,114 and $68, respectively, for the period ended
November 30, 1999.
