August 27, 1999
Dear Fellow Shareholders:
Here is your Annual Report on the Boyle Marathon Fund. For the year, the Fund
returned 41.7% for the shareholders. An investment of $10,000 in the Fund on
July 1, 1998, was worth $14,170 on June 30, 1999. The same investment in the S&P
500 Index would have returned only 19.52% during that same period (that is worth
$11,952). The Boyle Marathon Fund was 100% tax efficient again in 1999. So, for
another year, our shareholders will not have to pay any capital gains taxes.
Looking forward, we can promise you that we will do our very best to beat the
S&P 500 Index without taxing our shareholders. Of course, there are no
guarantees.
In the last 12 months, the Fund's technology stocks were the strongest
performers, followed by financial services and retail stocks. Fear about the
government's involvement in prescription drugs caused our pharmaceutical stocks
to under perform. We expect to increase the Fund's weighting in pharmaceutical
stocks over the next few months as the fears subside and as the proposals for
prescription drugs are better understood.
Americans and people around the world are embracing online commerce and trading.
For the next 3 to 5 years, we are expecting continued explosive growth in e-
commerce and in 3 years, we believe all companies will be Internet companies.
The Fund is well positioned in companies, which will provide the infrastructure
for e- commerce. We refer to them as the "pick and shovel" companies. History
confirms that in the California gold rush, the companies that made the money
were the ones that sold the equipment to the gold miners. We are also expecting
continued self- reliance in wealth management, so the Fund is well positioned in
companies that help individual investors manage their money. We are further
expecting significant breakthroughs in medicines and continued interest in
staying healthy. So, the Fund has positions in the leading pharmaceutical
companies.
The economy is in great shape for stock prices to move higher over the next 3 to
5 years. Inflation is low, interest rates are reasonable, employment is high,
consumer confidence is high, governments at all levels have surpluses, and there
are enough worriers around to keep investors from letting the market get ahead
of itself. This is a favorable backdrop for investing in stocks for the long
run.
We thank our shareholders for their continued confidence and trust. Please feel
free to call us toll free if you have a question or visit our web site for daily
updates.
Respectfully submitted,
/S/ Mike Joanne
-------------------------
Michael J. and Joanne E. Boyle
P.S. Morningstar and Lipper rank the Fund in the top 1% of funds in our
category.
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[GRAPH GOES HERE]
Past performance does not guarantee future results. Investment return and
principal values will fluctuate so that shares, when redeemed, may be worth more
or less than the original cost. The Fund's portfolio differs significantly from
the securities in the S&P 500 Index. The S&P 500 Index is unmanaged and does not
therefore does not reflect the cost of portfolio management or trading.
1 Year Return Since Inception Value of $10,000
Ending 6/30/99 Ave. Annual Return Investment
Boyle Marathon Fund 41.7% 33.9% $14,610
S&P 500 Index 19.5% 24.1% $11,952
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The Boyle Marathon Fund is a no-load fund that seeks to consistently beat the
S&P 500 Index without taxing shareholders. As you will see from the annual
report to Shareholders, the Fund is currently invested in domestic, large
capitalization stocks. Thank you for investing in the Fund. Please tell your
friends about the Fund.
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INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Directors
Boyle Marathon Fund:
We have audited the accompanying statement of assets and liabilities of Boyle
Marathon Fund, including the schedule of portfolio investments, as of June 30,
1999, and the related statement of operations for the year then ended, and the
statement of changes in net assets and financial highlights for the year then
ended and the period from February 23, 1998 (commencement of operations) to June
30, 1998 in the period 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 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 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. Our procedures included confirmation of investments and cash held by
the custodian as of June 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 audits provide 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 Boyle
Marathon Fund as of June 30, 1999, the results of its operations for the year
then ended, and the changes in its net assets and the financial highlights for
the year then ended and for the period from February 23, 1998 (commencement of
operations) to June 30, 1998 in the period then ended, in conformity with
generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio
July 15, 1999
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Boyle Marathon Fund
Schedule of Investments
June 30, 1999
Shares/Principal Amount Market Value % of Assets
Technology
400 3Com Corp. * 10,675
2,000 America Online * 220,500
300 American Telephone & Telegraph 16,687
1,040 At Home 56,095
200 Broadcom, Inc. * 28,913
3,000 Cisco Systems Inc. * 193,500
200 CMG Inc. * 22,812
400 CNET Inc. * 23,050
5,200 Dell Computer Corp. * 192,400
2,000 EMC Corporation * 110,000
200 Exodus Inc. * 23,987
100 Gemstar * 6,525
400 Intel Corp. 23,800
600 Lucent Technologies 40,463
1,000 Microsoft Corp. * 90,187
300 QUALCOM, inc. * 43,050
400 Uniphase Corp. * 66,400
100 MCI Worldcom * 8,606
300 Yahoo!, Inc. * 51,675
1,229,325 59.49%
Retail
100 Amazon.Com * 12,513
300 eBay * 45,300
2,400 Gap Inc. 120,900
1,100 Home Depot Inc. 70,950
400 Safeway Inc. * 19,800
800 Starbucks Corp. * 30,050
500 Walgreen Co. 14,688
1,000 Wal-Mart Stores Inc. 48,250
200 Williams Sonoma, Inc. * 6,962
369,413 17.88%
Pharmaceuticals
100 Bristol Myers Squibb Co. 7,025
50 Johnson & Johnson 4,900
500 Lilly, (Eli) & Co. 35,813
1,000 Merck & Co. Inc. 73,625
350 Pfizer Inc. 38,150
300 Watson Pharmaceuticals, Inc. * 10,519
170,032 8.23%
Financial Services
300 CitiGroup, Inc. 14,250
2,000 E Trade Group * 79,875
100 Fedl National Mortgage Assoc. 6,825
1,500 Schwab (Charles) Corp. 164,531
265,481 12.85%
*Non-ncome producing securities.
The accompanying notes are an integral part of the financial statements.
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Shares/Principal Amount Market Value % of Assets
Cash and Equivalents
23,920 Fountain Square Treasury 23,920 1.16%
Total Investments (cost $1,355,549) 2,058,171 99.60%
Other Assets Less Liabilities 8,236 0.40%
Net Assets - Equivalent to $14.61 2,066,407 100.00%
per share basied on 141,428 shares
of capital stock outstanding (Note 4)
*Non-ncome producing securities.
The accompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Assets and Liabilites
June 30, 1999
Assets:
Investment Securities at Market Value 2,058,171
(Identified Cost - $1,355,549)
Cash 24,398
Receivables:
Dividends and Interest 519
Other Assets 7,254
Total Assets 2,090,342
Liabilities
Payables:
Accrued Expenses 23,935
Total Liabilities 23,935
Net Assets 2,066,407
Net Assets Consist of:
Capital Paid In 1,487,140
Undistributed Net Investment Income (45,663)
Accumulated Realized Gain (Loss) on Investments - Net (77,692)
Unrealized Appreciation in Value
of Investments Based on Identified Cost - Net 702,622
Net Assets, for 141,428 Shares Outstanding 2,066,407
Net Asset Value and Redemption Price
Per Share ($2,066,407/141,428 shares) 14.61
Offering Price Per Share 14.61
Statement of Operations
For period ending June 30, 1999
Investment Income:
Dividends 2,604
Interest 2,963
Total Investment Income 5,567
Expenses
Management Fees (Note 2) 21,278
Administration Fee 14,186
Audit 8,088
Other expenses 2,500
Organizational Costs 1,980
Total Expenses 48,032
Net Investment Income (42,465)
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments (77,692)
Distribution of Realized Capital Gains from other
Investment Companies -
Unrealized Gain (Loss) from Appreciation (Depreciation)
on Investments 647,127
Net Realized and Unrealized Gain (Loss) on Investments 569,435
Net Increase (Decrease) in Net Assets from Operations 526,970
The accompanying notes are an integral part of the financial statements.
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Statement of Changes in Net Assets
7/1/98 2/23/98
to to
6/30/99 6/30/98
From Operations:
Net Investment Income (42,465) (3,197)
Net Realized Gain (Loss) on Investments (77,692) 0
Net Unrealized Appreciation (Depreciation) 647,127 55,494
Increase (Decrease) in Net Assets from Operations 526,970 52,297
From Distributions to Shareholders
Net Investment Income 0 0
Net Realized Gain (Loss) from Security Transactions 0 0
Net Increase (Decrease) from Distributions 0 0
From Capital Share Transactions:
Proceeds From Sale of 45,859 Shares 554,178 932,962
Net Asset Value of 0 Shares Issued on Reinvestment
of Dividends 0 0
Cost of 0 Shares Redeemed 0 0
554,178 932,962
Net Increase in Net Assets 1,081,148 985,259
Net Assets at Beginning of Period 985,259 0
Net Assets at End of Period 2,066,407 985,259
Financial Highlights
Selected data for a share of common stock
outstanding throughout the period: 7/1/98 2/23/98
to to
6/30/99 6/30/98
Net Asset Value -
Beginning of Period 10.31 10.00
Net Investment Income (0.36) (0.05)
Net Gains or Losses on Securities
(realized and unrealized) 4.66 0.36
Total from Investment Operations 4.30 0.31
Dividends
(from net investment income) 0.00 0.00
Distributions (from capital gains) 0.00 0.00
Return of Capital 0.00 0.00
Total Distributions 0.00 0.00
Net Asset Value -
End of Period 14.61 10.31
Total Return * 41.71% 8.84%
Ratios/Supplemental Data
Net Assets - End of Period (Thousands) 2,066 985
Ratio of Expenses to Average Net Assets* 3.36% 6.59%
Ratio of Net Income to Average Net Assets* (2.97)% (3.98)%
Portfolio Turnover Rate 59.04% 0.00%
*Annualized
The accompanying notes are an integral part of the financial statements.
<PAGE>
Boyle Marathon Fund
Notes to Financial Statements
June 30, 1999
1.) SIGNIFICANT ACCOUNTING POLICIES
The Fund is a open-end management investment company, organized as a Trust
under the laws of the State of Delaware by a Declaration of Trust in October
1997. The Fund's investment objective is long-term capital appreciation. The
Fund intends to invest primarily in securities of companies in the technology,
financial services, pharmaceutical, and retail fields. Significant accounting
policies of the Fund are presented below:
SECURITY VALUATION:
The Fund intends to invest in a wide variety of equity and debt securities.
The investments in securities are carried at market value. The market
quotation used for common stocks, including those listed on the NASDAQ
National Market System, is the last sale price on the date on which the
valuation is made or, in the absence of sales, at the closing bid price.
Over-the-counter securities will be valued on the basis of the bid price at
the close of each business day. Short-term investments are valued at amortized
cost, which approximates market. Securities for which market quotations are
not readily available will be valued at fair value as determined in good faith
pursuant to procedures established by the Board of Directors.
SECURITY TRANSACTION TIMING
Security transactions are recorded on the dates transactions are entered into.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded as earned. The Fund uses the
identified cost basis in computing gain or loss on sale of investment
securities. Discounts and premiums on securities purchased are amortized over
the life of the respective securities.
INCOME TAXES:
It is the Fund's policy to distribute annually, prior to the end of the
calendar year, dividends sufficient to satisfy excise tax requirements of the
Internal Revenue Service. This Internal Revenue Service requirement may cause
an excess of distributions over the book year-end accumulated income. In
addition, it is the Fund's policy to distribute annually, after the end of the
fiscal year, any remaining net investment income and net realized capital
gains.
ESTIMATES:
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
2.) INVESTMENT ADVISORY AGREEMENT
The Fund has entered into an investment advisory and administration agreement
with Boyle Management and Research, Inc. The Investment Advisor receives from
the Fund as compensation for its services an annual fee of 1.5% on the Fund's
net assets. Boyle Management and Research, Inc. receives from the fund as
compensation for its administrative services an annual fee of 1.0% of the
fund's net assets. Boyle Management and Research, Inc. has agreed to be
responsible for payment of all operation expenses of the fund except for
brokerage and commission expenses, expenses of the trustees who are not
officers of the Investment Adviser, annual independent audit expenses and any
extraordinary and non-recurring expenses. From time to time, Boyle Management
and Research, Inc. may waive some or all of the fees and may reimburse
expenses of the Fund.
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Boyle Marathon Fund
Notes to Financial Statements
June 30, 1999
3.) RELATED PARTY TRANSACTIONS
Certain owners of Boyle Management and Research, Inc. are also owners
and/or directors of the Boyle Marathon Fund. These individuals may
receive benefits from any management and or administration fees paid to
the Advisor.
4.) CAPITAL STOCK AND DISTRIBUTION
At June 30, 1999 an indefinite number of shares of capital stock were
authorized, and paid-in capital amounted to $1,487,140. Transactions in common
stock were as follows:
Shares sold 45,859
Shares issued to shareholders in
reinvestment of dividends 0
45,859
Shares redeemed
0
Net Increase 45,859
Shares Outstanding:
Beginning of Period
95,569
End of Period
141,428
5.) PURCHASES AND SALES OF SECURITIES
During the year ending June 30, 1999, purchases and sales of investment
securities other than U.S. Government obligations and short-term investments
aggregated $1,405,464 and $819,386 respectively. Purchases and sales of U.S.
Government obligations aggregated $0 and $0 respectively.
6.) FINANCIAL INSTRUMENTS DISCLOSURE
There are no reportable financial instruments that have any off-balance sheet
risk as of June 30, 1999.
7.) SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at June
30, 1999 was the same as identified cost.
At June 30, 1999, the composition of unrealized appreciation (the excess
of value over tax cost) and depreciation (the excess of tax cost over
value) was as follows:
Appreciation (Depreciation) Net Appreciation
(Depreciation)
732,562 (29,940) 702,622
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